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plus $3,000, or $7,700) petitioner owes no tax for 2002.
Therefore, he is not liable for any tax deficiency for 2002.
II. Additions to Tax
A. Respondent’s Section 6651(a)(1) Determinations
1. Introduction
Section 6651(a)(1) provides for an addition to tax in the
event a taxpayer fails to file a timely return (determined with
regard to any extension of time for filing), unless it is shown
that such failure is due to reasonable cause and not due to
willful neglect. The amount of the addition is equal to 5
percent of the amount required to be shown as tax on the
delinquent return for each month or fraction thereof during which
the return remains delinquent, up to a maximum addition of 25
percent for returns more than 5 months delinquent.
Respondent argues that petitioner’s language insertions
above the jurat and along the margins of his Forms 1040 submitted
to the IRS for the years in issue and the protests or other
documents attached to those forms contradict the declarations in
the jurat and, therefore, negate the status of those Forms 1040
as valid returns. As a result, respondent argues that petitioner
has failed to file a valid return for any of the years in issue,
and he has imposed the full 25-percent penalty for each year.
Alternatively, respondent argues: “Assuming arguendo, that
the * * * [petitioner’s Forms 1040] constitute tax returns for
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