- 10 -
(2). The combined amounts under paragraphs (1) and (2) cannot
exceed 5 percent per month. Sec 6651(c)(1).
The additions to tax under section 6651(a)(1) are applicable
unless the taxpayer establishes: (1) The failure to file did not
result from “willful neglect”; and (2) the failure to file was
“due to reasonable cause”. United States v. Boyle, 469 U.S. 241,
245-246 (1985); Heman v. Commissioner, 32 T.C. 479, 489-490
(1959), affd. 283 F.2d 227 (8th Cir. 1960). If petitioner
exercised ordinary business care and prudence and was nonetheless
unable to file his return within the date prescribed by law, then
reasonable cause exists. See sec. 301.6651-1(c)(1), Proced. &
Admin. Regs. “Willful neglect” means a “conscious, intentional
failure or reckless indifference.” United States v. Boyle, supra
at 245.
Petitioner filed what he claimed to be a valid return and
amended return for taxable year 2001. However, these purported
returns contain zeros on the relevant lines for computing
petitioner’s tax liability. Respondent did not accept these
returns and treated the documents that petitioner filed as
frivolous returns.
To determine whether a taxpayer has filed a valid return, we
follow the test set forth in Beard v. Commissioner, 82 T.C. 766,
777 (1984), affd. 793 F.2d 139 (6th Cir. 1986), to the effect
that a document constitutes a “return” for Federal income tax
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011