Steven Rudolph Kaldi - Page 12




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          Commissioner, 118 T.C. 358, 363 (2002); Higbee v. Commissioner,             
          116 T.C. 438 (2001).  Respondent has met his burden.                        
               1.  Late Filing                                                        
               Section 6651(a)(1) imposes an addition to tax for failure to           
          file a return by its due date.  The addition equals 5 percent for           
          each month or fraction thereof that the return is late, not to              
          exceed 25 percent.  Sec. 6651(a)(1).                                        
               In the absence of an extension, the last date for petitioner           
          to file his Federal income tax return for taxable year 2002 was             
          April 15, 2003.  Secs. 6072(b), 7503.  Petitioner’s 2002 return             
          was not filed, however, until July 14, 2004.                                
               “A failure to file a tax return on the date prescribed leads           
          to a mandatory penalty unless the taxpayer shows that such                  
          failure was due to reasonable cause and not due to willful                  
          neglect.”  McMahan v. Commissioner, 114 F.3d 366, 368 (2d Cir.              
          1997), affg. T.C. Memo. 1995-547.  A showing of reasonable cause            
          requires taxpayers to demonstrate they exercised “ordinary                  
          business care and prudence” but were nevertheless unable to file            
          the return within the prescribed time.  United States v. Boyle,             
          469 U.S. 241, 246 (1985); sec. 301.6651-1(c)(1), Proced. & Admin.           
          Regs.                                                                       












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