- 17 - all additions to tax. In the alternative, petitioners contend that respondent should abate the addition to tax for late payment that accrued from March 27 through July 30, 2003.10 Petitioners assert that they would have paid their outstanding tax liabilities on or about March 27, 2003, but that respondent failed to timely provide them with an escrow demand letter. Petitioners’ contention is misplaced. Section 6651(a)(2) imposes an addition to tax for failure to pay the amount shown as tax on the return on or before the date prescribed for payment of that tax, unless the failure was due to reasonable cause and not willful neglect. See sec. 301.6651- 1(c)(1), Proced. & Admin. Regs. Petitioners may demonstrate reasonable cause for late payment by showing that they exercised ordinary business care and prudence in providing for payment of their tax liability and were nevertheless either unable to pay the tax or would suffer an undue hardship if they paid on the due date. Sec. 301.6651-1(c), Proced. & Admin. Regs. At the time that petitioners filed their returns, they failed to remit the amount shown as tax. Based on the entirety 10 Petitioners concede that they are liable for the additions to tax for failure to timely file and for failure to pay estimated tax. Petitioners, however, contend that respondent should have also abated the addition to tax for failure to pay from July 31 to Nov. 30, 2003. We note that this addition for those years did not accrue for that period. See sec. 6651(a)(2).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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