- 10 - any evidence, that the 1999 return was received or mailed before the due date, as extended. Section 6651(a)(1) imposes an addition to tax of 5 percent per month of the amount of tax required to be shown on the return, not to exceed 25 percent, for failure to timely file a return. The addition to tax under section 6651(a)(1) is imposed unless the taxpayer establishes that the failure was due to reasonable cause and not willful neglect. The record is clear that the return was not timely filed and there is no evidence that would establish that the failure to timely file was due to reasonable cause and not willful neglect. Respondent is sustained on this issue. Accuracy-Related Penalty Under Section 6662(a) The Commissioner also has the “burden of production in any court proceeding with respect to the liability of any individual for any penalty” under section 6662(a). Sec. 7491(c); Higbee v. Commissioner, supra at 446-447. Once the Commissioner meets his burden of production, the taxpayer has the responsibility to come forward with evidence sufficient to persuade the Court that the Commissioner’s determination is incorrect. Higbee v. Commissioner, supra at 447. Section 6662(a) provides that a taxpayer may be liable for a penalty of 20 percent of the portion of an underpayment of taxPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011