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II. Late Filing Addition to Tax
Respondent determined that petitioner is liable for the
addition to tax under section 6651(a)(1) for failure to file
timely his 1999 return. Section 6651(a)(1) imposes an addition to
tax for failing to file a return on or before the specified filing
date unless it is shown that such failure is due to reasonable
cause and not due to willful neglect. Once the Commissioner
demonstrates the appropriateness of imposing the addition to tax,
thereby satisfying his initial burden of production under section
7491(c), the taxpayer bears the burden of proving the
applicability of the exception for reasonable cause and lack of
willful neglect. See Higbee v. Commissioner, 116 T.C. 438, 447
(2001).
The parties stipulated that petitioner did not file his 1999
return until August 2, 2001, and that petitioner did not seek, nor
was he granted, an extension of time to file that return.
Accordingly, respondent has met his burden of production.
To prove reasonable cause, petitioner must show he exercised
ordinary business care and prudence and was nevertheless unable to
file his 1999 return within the prescribed time. Charlotte’s
Office Boutique, Inc. v. Commissioner, 121 T.C. 89, 109 (2003);
sec. 301.6651-1(c)(1), Proced. & Admin. Regs. Petitioner asserts
that the late filing of his 1999 return was due primarily to the
fact that he was in the process of establishing a new business and
was unable to assemble in a timely manner the necessary
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