James S. Zigmont - Page 9

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          indicating that it is appropriate to impose the relevant penalty”           
          or addition to tax.  Higbee v. Commissioner, 116 T.C. 438, 446              
          (2001).  In instances where an exception to the penalty or                  
          addition to tax is afforded upon a showing of substantial                   
          authority, reasonable cause, or similar provisions, the taxpayer            
          bears the burden of raising and prevailing on these issues.  Id.            
          at 446-447.                                                                 
               1. Section 6651                                                        
               Section 6651(a)(1) imposes a 5-percent addition to tax for             
          each month or portion thereof a required return is filed after              
          the prescribed due date, not to exceed 25 percent in the                    
          aggregate, unless such failure to file timely is due to                     
          reasonable cause and not due to willful neglect.  Although not              
          defined in the Code, “reasonable cause” is described by the                 
          applicable regulations as the exercise of “ordinary business care           
          and prudence”.  Sec. 301.6651-1(c)(1), Proced. & Admin. Regs; see           
          also United States v. Boyle, 469 U.S. 241, 246 (1985).                      
          “[W]illful neglect” is interpreted as “a conscious, intentional             
          failure or reckless indifference.”  United States v. Boyle, supra           
          at 245.                                                                     
               Respondent produced evidence that petitioner failed to file            
          a Federal income tax return for 2000 and 2001.  A Federal income            
          tax return that contains only zeros and is accompanied by tax-              
          protester rhetoric is generally not considered a valid return.              






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