-13- v. Commissioner, T.C. Memo. 1992-690, affd. without published opinion 19 F.3d 26 (9th Cir. 1994). While petitioner asks the Court to adopt a different rule because Seltzer is not a tax professional, we decline to do so.3 2. Addition to Tax for Late Payment Section 6651(a)(2) provides an addition to tax of 0.5 percent per month (up to a maximum of 25 percent) for failing to pay on or before the payment due date the taxes shown on a return, unless that failure to pay is due to reasonable cause and not due to willful neglect. See United States v. Boyle, supra at 245; Crocker v. Commissioner, 92 T.C. 899, 912 (1989); sec. 301.6651-1(a)(2), Proced. & Admin. Regs. Again, respondent has met his burden of production under section 7491(c) as to the applicability of section 6651(a)(2), and petitioner bears a burden of proving that the coadministrators had reasonable cause in paying the estate’s estate tax late. See Higbee v. Commissioner, 116 T.C. at 446-447. Reasonable cause may be found if the taxpayer exercised ordinary business care and prudence and nevertheless either was unable to pay the tax or would have 3 Petitioner does not claim that Seltzer is other than an “ordinary person”; i.e., “one who is physically and mentally capable of knowing, remembering, and complying with a deadline”, United States v. Boyle, 469 U.S. 241, 253 (1985) (Brennan, J., concurring), and we view him to be an “ordinary person”. Thus, we do not address the point made by Justice Brennan in his concurrence in Boyle that a different rule may apply when a fiduciary is unable to meet the standard of “ordinary business care and prudence”.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011