- 7 -
those benefits are includable in their 2000 income. See sec.
86(a), (c). Respondent’s determination in this regard is,
therefore, sustained.
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).
The addition to tax is applicable unless the taxpayer
establishes that the failure was due to reasonable cause and not
willful neglect. Id. The taxpayer must prove both reasonable
cause and a lack of willful neglect. United States v. Boyle, 469
U.S. 241, 246 (1985). “Reasonable cause” requires the taxpayer
to demonstrate that he exercised ordinary business care and
prudence. Id. “Willful neglect” is defined as a “conscious,
intentional failure or reckless indifference.” Id. at 245.
Respondent bears the burden of production with respect to
any additions to tax. See sec. 7491(c). In order to meet this
burden, respondent must produce sufficient evidence establishing
that it is appropriate to impose the additions to tax. See
Higbee v. Commissioner, 116 T.C. 438, 446-447 (2001). Once
respondent has done so, the burden of proof is upon petitioners
to persuade the Court that respondent’s determination is
incorrect. See id.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011