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(e), Income Tax Regs. Respondent’s disallowance of the deduction
is sustained.
Failure To File, Addition To Tax
Respondent determined an addition to tax as a result of
petitioners’ failure to timely file their Federal income tax
return for the year in issue. Section 6651(a)(1) provides for an
addition to tax in the event a taxpayer fails to file a timely
return (determined with regard to any extension of time for
filing). The amount of the addition is equal to 5 percent of the
amount required to be shown as tax on the delinquent return for
each month or fraction thereof during which the return remains
delinquent, up to a maximum addition of 25 percent for returns
more than 4 months delinquent. Sec. 6651(a)(1).
Petitioners’ 1998 Federal income tax return was due on April
15, 1999. See sec. 6072(a); sec. 1.6072-1(a), Income Tax Regs.
Section 6081(a) allows for a reasonable extension for the filing
of a tax return; the extension may not exceed 6 months. See sec.
6081. Petitioners requested an extension to August 15, 1999, to
file their 1998 return. Petitioners obtained such extension for
filing their return. However, petitioners testified that their
1998 return was filed in October of 1999, while respondent
contends that petitioners’ 1998 return was received by respondent
on April 6, 2000.
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