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concludes that Mr. Spanier is liable for the accuracy-related
penalty as determined by respondent. The Court further concludes
that Ms. Spanier is not liable for the accuracy-related penalty
as determined by respondent.
2. Failure-To-File Addition to Tax
Respondent contends that Ms. Spanier is 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 without
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 she 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.
Ms. Spanier's 1998 return was filed on June 1, 1999. She
did not prove she had reasonable cause or a lack of willful
neglect. Therefore, the Court sustains respondent's
determination as to the section 6651(a)(1) addition to tax.
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