- 12 -
cardiac surgery and well after he had returned to work full time.
Moreover, petitioners’ 1998 tax return, which was due October 15,
1999 (only about 9 months after Richard’s cardiac surgery), was
timely filed on October 8, 1999. We are not persuaded that
Richard’s health problems prevented petitioners from filing their
2000 tax return on time.7 See, e.g., Ramirez v. Commissioner,
T.C. Memo. 2005-179.
We conclude that petitioners are liable for the section
6651(a)(1) addition to tax for failure to timely file their
Federal income tax return for tax year 2000.
Section 6651(a)(2) Addition to Tax for Failure To Pay
Section 6651(a)(2) imposes an addition to tax for failure to
pay the amount of taxes shown on a return on or before the date
prescribed (taking into account any extension of time for
filing), unless it is shown that the failure is due to reasonable
cause and not due to willful neglect. A taxpayer has reasonable
cause for failure to timely pay a tax if:
the taxpayer has made a satisfactory showing that he
exercised ordinary business care and prudence in
providing for payment of his tax liability and was
nevertheless either unable to pay the tax or would
suffer an undue hardship * * * if he paid on the due
date. * * * Thus, for example, a taxpayer who incurs
lavish or extravagant living expenses in an amount such
7 We further note that petitioners’ Forms 2688, Application
for Additional Extension of Time to File U.S. Individual Income
Tax Return, did not assert Richard’s illness or purported
resultant financial distress as a reason requiring an additional
extension for 1999 or 2000.
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011