Norman W. Klootwyk - Page 6

          2.   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 he exercised ordinary business care and                 
          prudence and nevertheless was unable to file the 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.                                       
               Petitioner stipulated that he never filed his 2001 tax                 
          return.  Respondent has, accordingly, met his burden of                     
          production with regard to the section 6651(a)(1) addition to tax.           
          See sec. 7491(c).  Petitioner has neither offered an explanation            
          for his failure to file nor produced evidence to establish any              
          reasonable cause for his failure to file the return.  We sustain            
          respondent’s determination of an addition to tax under section              

Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011