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2. Addition to Tax for Failure To Timely File
Under section 7491(c), respondent has the burden of
production in any court proceeding with respect to the liability
of any individual for any penalty or addition to tax. Higbee v.
Commissioner, 116 T.C. 438, 446-447 (2001). In order to meet his
burden of production, respondent must come forward with
sufficient evidence indicating that it is appropriate to impose
the addition to tax for failure to timely file in this case. Id.
at 446. Once respondent meets his burden of production, the
taxpayer must come forward with evidence sufficient to persuade a
court that respondent's determination is incorrect. Id. at 447.
Respondent contends that petitioner 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 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). 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. Id.; Crocker v. Commissioner, 92 T.C. 899, 912
(1989). “Reasonable cause” requires the taxpayer to demonstrate
that he exercised ordinary business care and prudence. United
States v. Boyle, 469 U.S. 241, 246 (1985). “Willful neglect” is
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Last modified: May 25, 2011