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B. Section 6651(a)(1) Addition to Tax
Section 6651(a)(1) imposes an addition to tax for failure to
file a timely return unless it is shown that such failure is due
to reasonable cause and not to willful neglect. “[R]easonable
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.
Here, respondent has met the burden of production because
petitioner has admitted that he failed to file a Federal income
tax return for 2002. Petitioner has not presented any evidence
to suggest that his failure to file was due to reasonable cause.
Although, at trial, petitioner testified that he thought that the
Government had recouped all of the tax that he owed for 2002,
that does not establish reasonable cause for failing to file a
tax return. See Knight v. Commissioner, T.C. Memo. 1984-376
(holding that an unconfirmed belief that petitioner did not owe
tax did not constitute reasonable cause for failing to file a tax
return). Consequently, the Court sustains respondent’s
imposition of an addition to tax pursuant to section 6651(a)(1).
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Last modified: November 10, 2007