-7-
Petitioner does not qualify for any exception to the 10-percent
additional tax on the remaining $308,622 and is thus liable for
the additional tax on this amount.
3. Addition to Tax Under Section 6651(a)(1)
Section 6651(a)(1) imposes an addition to tax for failure to
file a return when due “unless it is shown that such failure is
due to reasonable cause and not due to willful neglect”. The
addition equals 5 percent for each month that the return is late,
not to exceed 25 percent in total. The Commissioner has the
burden of production with respect to the liability of an
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 the taxpayer. Higbee v. Commissioner, 116
T.C. 438, 446-448 (2001). “Reasonable cause” requires petitioner
to demonstrate that she exercised ordinary business care and
prudence and nevertheless was unable to file her 1999 Federal
income tax return by the due date. United States v. Boyle, 469
U.S. 241, 246 (1985); sec. 301.6651-1(c), Proced. & Admin. Regs.
Willful neglect is defined as a “conscious, intentional failure
or reckless indifference.” United States v. Boyle, supra at 245.
We have found that petitioner did not file a tax return for
1999. On the record before us, we find that respondent has
satisfied his burden of production with regard to the section
6651(a)(1) addition to tax. See sec. 7491(c); Higbee v.
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