Jimmy A. Prince - Page 12

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          household.  Under section 2(b)(1)(A)(i), an individual such as              
          petitioner will qualify for head of household status if he                  
          maintains as his home a household that is the principal place of            
          abode of a son or daughter for more than one-half of the taxable            
          year.  The record establishes that petitioner did not reside with           
          Keauna during the subject years and does not establish that Zik             
          resided with him either.                                                    
          6.  Addition to Tax/Accuracy-Related Penalties                              
               Section 6651(a)(1) imposes an addition to tax for failing to           
          file a return on or before the specified filing date unless it is           
          shown that this failure is due to reasonable cause and not due to           
          willful neglect.  Reasonable cause may exist if a taxpayer                  
          exercised ordinary business care and prudence and was nonetheless           
          unable to file the return within the date prescribed by law.                
          Sec. 301.6651-1(c)(1), Proced. & Admin. Regs.  Willful neglect              
          means a “conscious, intentional failure or reckless                         
          indifference.”  United States v. Boyle, 469 U.S. 241, 245 (1985).           
               Section 6662(a) imposes a penalty of 20 percent on the                 
          portion of an underpayment of tax attributable to, among other              
          things, a substantial understatement of tax.  Sec. 6662(b)(1) and           
          (2).  A substantial understatement of tax is one that exceeds the           
          greater of 10 percent of the tax required to be shown on the                
          return or $5,000.  Sec. 6662(d)(1)(A).  An accuracy-related                 
          penalty does not apply to any portion of an understatement as to            

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