- 9 - (1946) (“The rule is well established that the failure of a party to introduce evidence within his possession and which, if true, would be favorable to him, gives rise to the presumption that if produced it would be unfavorable.”), affd. 162 F.2d 513 (10th Cir. 1947); see also Little v. Commissioner, T.C. Memo. 1996-270 (“The Wichita Terminal presumption generally applies where the party failing to produce the evidence has the burden of proof.”). Petitioner had the opportunity to call witnesses to testify and present evidence on his behalf. However, petitioner did neither. The Court therefore sustains the deficiency determined by respondent.6 III. Additions to Tax Section 6651(a) provides for a 5-percent addition to tax for each month or portion thereof that the tax return is filed late, not to exceed 25 percent in the aggregate, unless such failure to file is due to reasonable cause and not due to willful neglect. Although not defined in the Code, “reasonable cause” is viewed in the applicable regulations as the “exercise of ordinary business care and prudence”. Sec. 301.6651-1(c)(1), Proced. & Admin. Regs; see also United States v. Boyle, 469 U.S. 241, 246 (1985). “Willful neglect” can be interpreted as a “conscious, intentional failure or reckless indifference.” United States v. Boyle, supra at 245. With respect to section 6651(a) additions to tax, 6 This is subject to the agreement between the parties to reduce the deficiency to $9,282 for 2001 due to petitioner’s substantiation of certain deductions. See also supra note 2.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011