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months after the tax is due to be paid.11 A taxpayer can be
absolved of liability from either addition to tax if the taxpayer
demonstrates that the failure to file, or the failure to pay, as
appropriate, is due to reasonable cause and not due to willful
neglect. Sec. 6651(a); Higbee v. Commissioner, 116 T.C. 438
(2001).
Petitioner’s 1999 return was filed more than 4 months late.
Petitioner has offered no reason why that return was filed when
it was. Consequently, he is liable for the section 6651(a)(1)
addition to tax for his failure to file a timely 1999 Federal
income tax return.
As of June 2, 2003, the date that respondent received
petitioner’s 1999 return and 1999 check, the section 6651(a)(2)
addition to tax had just about reached its maximum amount. Had
respondent applied the 1999 check to the liability shown on
petitioner’s 1999 return, further accrual of the addition to tax
would have been prevented, but the portion of the section
6651(a)(2) addition to tax that had accrued up until that date
would be applicable because petitioner had not shown (and has not
11 The sec. 6651(a)(1) addition to tax accrues at the rate
of 5 percent per month for as long as the failure to file
continues until the maximum 25 percent is reached; the sec.
6651(a)(2) addition to tax accrues more slowly at the rate of
.5 percent per month until the maximum 25 percent is reached.
For those months that both additions to tax apply, the amount of
the sec. 6651(a)(2) addition to tax offsets the amount of the
sec. 6651(a)(1) addition to tax.
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Last modified: November 10, 2007