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Section 6651(a)(1) imposes an addition to tax for failure to
timely file a tax return. The addition to tax is equal to 5
percent of the amount of the tax required to be shown on the
return if the failure to file is not for more than 1 month. See
sec. 6651(a)(1). An additional 5 percent is imposed for each
month or fraction thereof in which the failure to file continues,
to a maximum of 25 percent of the tax. See id. Section
6651(a)(2) provides for an addition to tax of 0.5 percent per
month, up to 25 percent for failure to pay the amount shown or
required to be shown on a return. A taxpayer may be subject to
both paragraphs (1) and (2), in which case the amount of the
addition to tax under section 6651(a)(1) is reduced by the amount
of the addition to tax under section 6651(a)(2) for any month to
which an addition to tax applies under both paragraphs (1) and
(2). The combined amounts under paragraph (1) and paragraph (2)
cannot exceed 5 percent per month. Sec 6651(c)(1).
The additions to tax under section 6651(a)(1) and (2) are
applicable unless the taxpayer establishes: (1) The failure to
file and/or pay did not result from “willful neglect”; and (2)
the failure to file and/or pay was “due to reasonable cause”.
United States v. Boyle, 469 U.S. 241, 245 (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 or pay
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Last modified: May 25, 2011