- 86 -
Co. v. Commissioner, 365 F.2d 846, 854 (5th Cir. 1966), affg.
T.C. Memo. 1964-126). Thus, we sustain respondent’s
determinations of accuracy-related penalties as to Eric, Brad,
and Mark.
Additions to Tax--Failure To File Timely Return
Pursuant to section 6651(a)(1), respondent determined that
the Bensons are liable for additions to tax for 1989 and 1990 and
that Eric is liable for additions to tax for 1993.73 An addition
to tax is imposed under section 6651 for the failure to file a
return within the period prescribed, unless the taxpayer shows
that such failure was due to reasonable cause and not due to
willful neglect. Sec. 6651(a)(1). The amount of the addition is
5 percent of the amount required to be shown as tax for each
month that the delinquency persists, up to a maximum of 25
percent. Id.
The delinquency is due to reasonable cause if the taxpayer
exercised ordinary business care and prudence but was
nevertheless unable to perform his tax obligations in a timely
manner. Brewery, Inc. v. United States, 33 F.3d 589, 592 (6th
Cir. 1994); Housden v. Commissioner, T.C. Memo. 1992-91.
73According to the notice of deficiency, Eric’s delinquency
addition to tax is a result of an invalid extension. Since he
did not properly estimate his tax liabilities on his extension
application and since he failed to show a reasonable attempt to
secure the information necessary to make the estimate, his
extension was considered invalid.
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