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The record demonstrates that petitioner was the covered
employee and plan participant. The record also demonstrates that
the 1998 distribution was attributable to petitioner’s retirement
and not to any disability of his. Because section
72(t)(2)(A)(iii) requires that a distribution be attributable to
the employee’s being disabled in order for the exception to the
10-percent additional tax to apply, we hold that petitioner does
not qualify for the section 72(t)(2)(A)(iii) exception.
IV. Section 6651(a)(1) Addition to Tax
Section 6651(a) imposes an addition to tax for failure to
file a return in the amount of 5 percent of the tax liability
required to be shown on the return for each month during which
such failure continues, but not exceeding 25 percent in the
aggregate, unless it is shown that such failure is due to
reasonable cause and not due to willful neglect. See sec.
6651(a)(1); United States v. Boyle, 469 U.S. 241, 245 (1985);
United States v. Nordbrock, 38 F.3d 440, 444 (9th Cir. 1994);
Harris v. Commissioner, T.C. Memo. 1998-332. A failure to file a
timely Federal income tax return is due to reasonable cause if
the taxpayer exercised ordinary business care and prudence and
nevertheless was unable to file the return within the prescribed
time. See sec. 301.6651-1(c)(1), Proced. & Admin. Regs. Willful
neglect means a conscious, intentional failure to file or
reckless indifference. See United States v. Boyle, supra at 245.
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