Michael E. Thibodeaux & Stephanie R. Thibodeaux, a.k.a. Stephanie R. Hearn - Page 10

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               We need not consider other reasons advanced by respondent in           
          support of the disallowance of the deduction for travel expenses.           
          Because petitioners are cash basis taxpayers, the expenses                  
          incurred for the trip to Jamaica in January 1999, if otherwise              
          deductible, are not deductible in 1998.  See sec. 461(a).                   
          Accordingly, we sustain respondent’s determination with respect             
          to the disallowed travel expense deduction.                                 
               In the notice of deficiency respondent imposed an addition             
          to tax under section 6651(a)(1).  That section provides for an              
          addition to tax of 5 percent of the amount of the tax required to           
          have been shown on the return if the failure to file is for not             
          more than 1 month, with an additional 5 percent for each month in           
          which the failure to file continues, to a maximum of 25 percent             
          of the tax in the aggregate.  If an income tax return is not                
          filed within 60 days of the prescribed date for filing (including           
          extensions), the addition to tax imposed is not less than the               
          lesser of $100 or 100 percent of the amount required to be shown            
          as tax on the return.  Sec. 6651(a).  The addition to tax is                
          imposed on the net tax due, sec. 6651(b), and applicable unless             
          the taxpayer establishes that the failure to file is due to                 
          reasonable cause and not due to willful neglect.  Sec.                      
          6651(a)(1); United States v. Boyle, 469 U.S. 241, 245 (1985).               









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