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his taxable income for 1998. Consequently, we conclude that
petitioner’s taxable income for 1998 includes the payments
received from FN Manufacturing and the State Board.
Section 6651(a)(1) provides for an addition to tax of 5
percent of the tax required to be shown on the return for each
month or fraction thereof for which there is a failure to file,
not to exceed 25 percent. The addition to tax for failure to
file a return timely will be imposed if the return is not filed
timely unless the taxpayer shows that the delay was due to
reasonable cause and not willful neglect. Sec. 6651(a)(1).
Respondent bears the burden of production with respect to the
addition to tax. Sec. 7491(c). The record demonstrates that
petitioner failed to file a 1998 Federal income tax return.
Petitioner has made no contention and offered no evidence that
the delay was due to reasonable cause and not willful neglect.
Consequently, we conclude that petitioner is liable for the
section 6651(a)(1) addition to tax for failure to file as
determined by respondent.
Section 6654(a) provides for an addition to tax for an
underpayment of estimated tax by an individual. This addition to
tax is mandatory unless one of the statutorily provided
exceptions applies. Sec. 6654(e). The record demonstrates that
petitioner did not remit any estimated tax payments for 1998, and
none of the statutory exceptions applies. Consequently, we
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