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petitioner to provide sufficient information as to the facts
surrounding the distribution from Jackson. Petitioner did not
provide information, nor did he authorize Jackson to provide such
information to respondent. In this connection, the copy of the
policy from Jackson provided some relevant information. However,
given the complex rules relating to the taxation of annuities
under section 72, the Court required facts surrounding the
distribution, which were not forthcoming. Respondent’s
determination is sustained on this issue.
Addition to Tax Under Section 6651(a)(1)
If a Federal income tax return is not timely filed, an
addition to tax will be assessed “unless it is shown that such
failure is due to reasonable cause and not due to willful
neglect”. Sec. 6651(a)(1). A delay is due to reasonable cause
if “the taxpayer exercised ordinary business care and prudence
and was nevertheless unable to file the return within the
prescribed time”. Sec. 301.6651-1(c)(1), Proced. & Admin. Regs.;
see also United States v. Boyle, 469 U.S. 241, 243 (1985). The
Commissioner has the burden of production with respect to the
liability of any individual for an addition to tax under section
6651(a)(1). Sec. 7491(c). The burden of showing reasonable
cause under section 6651(a) remains on petitioner. Higbee v.
Commissioner, 116 T.C. 438, 446-448 (2001).
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Last modified: May 25, 2011