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Once respondent meets his burden of production, petitioners must
come forward with evidence sufficient to persuade the Court that
respondent's determination is incorrect. Id. at 447.
Respondent contends that petitioners are liable for an
addition to tax pursuant to section 6651(a)(1). Section
6651(a)(1) imposes an addition to tax for failure to file a
Federal income tax return by its due date, determined with regard
to any extension of time for filing previously granted. The
addition equals 5 percent for each month that the return is late,
not to exceed 25 percent. Sec. 6651(a)(1). Additions to tax
under section 6651(a)(1) are imposed unless the taxpayer
establishes that the failure was due to reasonable cause and not
willful neglect. Sec. 6651(a)(1); Crocker v. Commissioner, 92
T.C. 899, 912 (1989). "Reasonable cause" requires the taxpayer
to demonstrate that he exercised ordinary business care and
prudence. United States v. Boyle, 469 U.S. 241, 246 (1985).
"Willful neglect" is defined as a "conscious, intentional failure
or reckless indifference." Id. at 245.
Petitioners' 1998 return was filed on April 14, 2000. They
failed to prove they had reasonable cause for the delay or that
they lacked willful neglect in filing their return. Therefore,
the Court sustains respondent's determination as to the section
6651(a)(1) addition to tax.
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