Eddie Lee Williams - Page 10

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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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