- 7 -
absence of evidence that petitioner timely filed his returns, the
Court finds that the returns were not timely filed.
Petitioner introduced no evidence or any legally sufficient
reason for his failure to file timely returns. Therefore, the
Court finds that petitioner is liable for additions to tax under
section 6651(a)(1) for failure to timely file his returns for the
years in issue.
Additions to Tax Under Section 6651(a)(2)
Section 6651(a)(2) imposes an addition to tax for failure to
pay the amount shown as tax on the return on or before the date
prescribed for payment of that tax, unless the failure was due to
reasonable cause and not willful neglect. See sec. 301.6651-
1(c)(1), Proced. & Admin. Regs. Petitioner may demonstrate
reasonable cause for late payment by showing that he exercised
ordinary business care and prudence in providing for payment of
his tax liability and was nevertheless either unable to pay the
tax or would suffer an undue hardship if he paid on the due date.
Sec. 301.6651-1(c), Proced. & Admin. Regs. The term “undue
hardship” means more than an inconvenience to the taxpayer, and
it must appear that substantial financial loss would result to
the taxpayer from making payments by the due date. See sec.
1.6161-1(b), Income Tax Regs.
At the time petitioner filed his returns, he made small
payments towards his tax liabilities for 1996, 1997, and 1999,
and he made no payment toward his tax liability for 1998. The
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011