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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 to tax equals 5 percent for each month that the
return is late, not to exceed 25 percent. Sec. 6651(a)(1).
Section 6651(a)(2) provides for an addition to tax for
failure to pay taxes shown on a return on or before the payment
due date. The addition to tax is one-half percent of the amount
shown as tax on a return for each month or fraction thereof
during which the failure to pay continues, not exceeding 25
percent in the aggregate. Sec. 6651(a)(2).
The additions to tax under section 6651(a)(1) and (2) do not
apply, however, if the failure is due to reasonable cause and not
due to willful neglect. United States v. Boyle, 469 U.S. 241,
245 (1985); Jackson v. Commissioner, 864 F.2d 1521, 1527 (10th
Cir. 1989), affg. 86 T.C. 492 (1986); 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, supra at 246. "Willful
neglect" is defined as a "conscious, intentional failure or
reckless indifference." Id. at 245.
Petitioner agrees that his return for 1992 was not filed
timely and that he has not fully paid his tax liabilities shown
as due on the returns for the 3 subject years. Petitioner has
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