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The second issue for decision is whether petitioner is
liable for the additions to tax for failure to file timely
returns and for failure to make estimated income tax payments.
Section 6651(a)(1) imposes an addition to tax for failure to
file a timely return. This addition to tax equals 5 percent of
the amount required to be shown as tax on the return for each
month, or fraction thereof, during which the failure to file
continues, up to a maximum of 25 percent. A taxpayer may avoid
this addition to tax if he establishes that the failure to file
is due to reasonable cause and not due to willful neglect. Sec.
6651(a)(1). “Reasonable cause” exists where a taxpayer is unable
to file a return within the prescribed time despite the exercise
of ordinary business care and prudence. United States v. Boyle,
469 U.S. 241, 246 (1985). “Willful neglect” means a conscious,
intentional failure or reckless indifference. Id. at 245.
Petitioner did not file a return in either 1989 or 1990.
Petitioner does not assert, and there is nothing in the record
which indicates, that petitioner had reasonable cause for his
failure to file the returns. Consequently, we sustain
respondent’s determination that petitioner is liable for the
section 6651(a)(1) addition to tax for each year in issue.
Section 6654(a) provides for an addition to tax in the event
of an underpayment of a required installment of individual
estimated tax. As relevant here, each required installment of
estimated tax is equal to 25 percent of the “required annual
payment”, which in turn is equal to the lesser of (1) 90 percent
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