§6651 — Failure to file tax return or to pay tax

485, 493 (2017), supplementing and overruling in part 147 T.C.

438, 446 (2001)), supplementing and overruling in part 147 T.C.

485, 493–94 (2017), supplementing and overruling in part 147 T.C.

485, 492–93 (2017), supplementing and overruling in part 147 T.C.

485, 493 (2017), supplementing and overruling in part 147 T.C.

485, 493 (2017), supplementing and overruling in part 147 T.C.

485, 493 (2017), supplementing and overruling in part 147 T.C.

485, 493 (2017), supplementing and overruling in part 147 T.C.

With this amendment, Congress explicitly sought to overrule our holding in Estate ofYoung and clarify that the Tax Court hasjurisdiction over additions to tax under section 6651(a)(2) "for failure to pay an amount shown on the return where the Tax Court already hasjurisdiction to redetermine a deficiency in tax with respect to that return."3 See H.R.

20, 2017), supplementing and overruling in part Graev II, 147 T.C.

Section 6651(a)(1) Addition to Tax Respondent bears the burden of producing sufficient evidence to show that it is appropriate to impose the addition to tax. See § 7491(c); Wheeler v. Commissioner, 127 T.C. 200, 206 (2006), aff’d, 521 F.3d 1289 (10th Cir. 2008); Higbee, 116 T.C. at 446–47.12 Generally, once the Commissioner meets the burden of production under section 7491(c), the taxpayer bears the burden of proving the addition to tax does not apply because of reasonable cause or other exculpa

Unlike the section 6651 addition to tax, the section 6654 addition to tax “has no provision relating to reasonable cause and lack of willful neglect.

As noted above, the failure-to-file addition to tax imposed by section 6651(a)(1) applies to a failure to file, among other things, a return required by section 6011 (including a Form 8804). The section 6651(a)(1) addition to tax does not apply to returns required to be filed under the authority of part III of subchapter A of chapter 61.

Section 6651(a)(1) Failure to Timely File Section 6651(a)(1) imposes an addition to tax for a taxpayer’s failure to file a required return on or before the specified filing date, including extensions. As explained supra note 2, the Estate bears the burden of proof with respect to its liability for the addition to tax. See Estate of Jackson, T.C. Memo. 2021-48, at *248; Estate of Ramirez, T.C. Memo. 2018-196, at *32. The addition to tax is inapplicable if the taxpayer’s failure to file the return

The IRS in the notice ofdeficiency deter- mined and assessed "additions to tax" under sections 6651(a)(2) and (f) and 6654(a). Section 6751(b) by its terms does not apply to "any addition to tax under section 6651, 6654, or 6655." Sec.

New matterrelating to liability forpenalty The Commissioner acknowledges that, unlike the additions to tax for failure to file timely under section 6651(a)(1),32 the section 6662(a) accuracy-related 3'The language quoted above from the notice ofdeficiency issued to Mrs.

New matterrelating to liability forpenalty The Commissioner acknowledges that, unlike the additions to tax for failure to file timely under section 6651(a)(1),32 the section 6662(a) accuracy-related 3'The language quoted above from the notice ofdeficiency issued to Mrs.

This is an error in form only and does not have a substantive effect on these cases." Id., 1999 WL 482626, - 18 - [*18] at *1 n.2 (emphasis added).5 Because one might conclude from some ofour cases addressing section 6651(f) that we do not distinguish between what must be proved to sustain a section 6651(f) addition and what must be proved to sustain a section 6663(a) penalty, we do not find that, with respect to 2007, respondent failed to plead or to raise a section 6651(f) addition.

Respondent bears the búrden ofproduction, but petitioner bears - 8 - [*8] the burden ofproof, with respect to the addition to tax under section 6651 and any accuracy-related penalty under section 6662. See sec. 7491(c). II. Section 166 bad debt deduction A. Bona fidé debt Section 166(a)(1) allows as a deduction any bona fide debt that becomes worthless within the taxable year. For nonbusiness bad debt held by a taxpayer other than a corporation, section 166(a)(1) does not apply, and the taxpaye

Zapara is inapposite at this early stage ofthe proceeding.

Crouse for their taxable year 2001 for the addition to tax under section 6651(a) (1) and the accuracy-rel-ated penalty under section 6662 (a). Section 6651(a) (1) imposes an addition to tax -for failure to file timely a return.22 The addition to tax under section 6651(a) (1) does not apply if the failure to file timely is due to reasonable cause, and not to willful neglect.

Addition to Tax Under Section 6651(a)(1) and Accuracy-Related Penalty Under Section 6662(a ) Respondent determined that petitioner is liable for the addition to tax under section 6651(a)(1) and the accuracy-related penalty under section 6662(a) . Section 6651(a)(1) imposes an addition to tax for failure to file timely a tax return . The addition to tax under that section does not apply if the failure to file timely is due to reasonable cause, and not willful neglect .

Addition to Tax Section 6651(a)(1) imposes an addition to tax for a taxpayer’s failure to file a required return on or before the specified filing due date, including extensions. Section 6651(a)(2) imposes an addition to tax for failing to pay an amount shown on a return. An addition to tax under either section 6651(a)(1) or (2) is inapplicable, however, if the - 32 - taxpayer’s failure to file the return was due to reasonable cause and not due to willful neglect.

163, 170 (2003) (a return prepared by the Secretary under section 6020(b) treated as a return filed by the taxpayer for purposes of determining the addition to tax under section 6651(a)(2)); Spurlock v. Commissioner, T.C. Memo. 2003-124 (same); Janpol v. Commissioner, 102 T.C. 499, 501-502 (1994) (Beard does not apply in determining period of limitations for purposes of the tax imposed by section 4975 because section 6501(l)(1) specifically references a return that does not require all the infor

6654(a).] Unlike section 6651, the liability for the addition to tax under section 6654 does not depend on a lack of reasonable cause or the presence of willful neglect.

We disagree with both parties insofar as they contend that a taxpayer' s celebrity status is somehow relevant to what this.

Additions to Tax The Commissioner determined additions to tax for failure to file and failure to pay pursuant to section 6651 and for the underpayment of estimated taxes pursuant to section 6654 for 2015.

Spenlinhauer (estate) is liable for an estate tax deficiency of Served 12/30/25 2 [*2] $3,984,344, an addition to tax pursuant to section 6651(a)(1)1 of $996,086, and an accuracy-related penalty pursuant to section 6662(a) and (b)(5) of $524,520 and (2) Robert J.

Henry is not liable for the greater addition to tax under section 6651(f), we hold that he is liable instead for the lesser addition to tax under section 6651(a)(1).

and 2012; (3) failed to report gross receipts from his business as income for 2017; (4) is entitled to head of household filing status for 2017; (5) is entitled to the additional child tax credit for 2017; (6) is entitled to the earned income tax credit for 2017; (7) is liable for additions to tax pursuant to section 6651(a)(1) for all years at issue; (8) is liable for an addition to tax pursuant to section 6651(a)(2) for 2017; and (9) is liable for accuracy- related penalties pursuant to sectio

Valentine an SNOD determining a tax deficiency of $11,034 for 2016, as well as additions to tax pursuant to section 6651(a)(1) and (a)(2).

MEMORANDUM OPINION KERRIGAN, Judge: Respondent determined a deficiency of $15,348, an addition to tax pursuant to section 6651(a)(1) of $1,196, and an accuracy-related penalty pursuant to section 6662(a) of $3,070 for 2018.

Accordingly, we hold that petitioner is liable for the addition to tax under section 6651(a)(2).

We hold that the Commissioner does not bear the burden ofproduction with respect to penalties in a partnership- level proceeding.

We hold that the Commissioner does not bear the burden ofproduction with respect to penalties in a partnership- level proceeding.

Accordingly, we hold petitioners liable for the additions to tax under section 6651(a)(1) for tax years 2007 and 2008.

Pursuant to section 6651(a)(3), additions to tax, computed on the unpaid balance shown in the notice and demand, would have begun accruing 11 business days thereafter.

Pursuant to section 6651(a)(3), additions to tax, computed on the unpaid balance shown in the notice and demand, would have begun accruing 11 business days thereafter.

Petitioner has been given an opportunityto present his position in court, and we hold that it is without support in the cases or statutes proffered.

Accordingly, we hold that petitioner is liable for the additions to tax under section 6651(f) and sustain respondent's determinations as set forth in the notice ofdeficiency.

We hold that petitioner is so liable; (3) whether petitioner is liable for additions to tax pursuant to section 6651(a)(1) and (2) for failure to timely file Forms 5330, Return ofExcise Taxes Related to Employee Benefit Plans, and failure to timely pay the excise taxes for calendar years 2002 through 2006.

In applying section 6651(f) to determine whether petitioner's failure to file tax returns was fraudulent, we consider the same elements considered in cases involving former section 6653(b) and present section 6663(a).

We hold that he did.

We hold that he is not; and (2) whether petitioner is liable for additions to tax for failure to timely file, for failure to timelypay, and for failure to pay estimatedtax.

After concessions,2 the issues for decision are: (1) whether loss deductions claimed on petitioner's Schedule E, Supplemental Income and Loss, should be disallowed for 2008 and 2009 under section 469 (we hold that they should); (2) whetherpetitioner is liable under section 6651(a)(1) for an addition to tax for late filing ofa tax return for 2008 (we hold that he is); and (3) whether petitioner is liable for accuracy-relatedpenalties under section 6662(a) (we hold that he is not).

We hold he is to a limited extent; (2) whether petitioner is liable for the additions to tax, pursuantto section 6651(a)(1),¹ for the years 2002, 2003, 2004, 2005, and 2006.

We hold that he is not; (2) whetherpetitioner is liable for the addition to tax under section 6651(a)(1).

We hold that he is; and (2) whether petitioner is liable for additions to tax for failure to timely file under section 6651(a)(1),1 failure to timely pay under section 6651(a)(2), and failure to pay estimated taxes under section 6654 for the years 2004 through 2010.

We hold that Jones is liable for the section 6651(a)(2) addition to tax.

530, 92 Stat at 2885 (section 530); (b) whether petitioner is liable for an addition to tax for failure to timely file returns pursuant to section 6651(a)(1) for the tax periods involved; (c) whether petitioner is liable for the addition to tax for failure to timely pay pursuant to section 6651(a)(2) for the tax periods involved; and (d) whether petitioner is liable for the penalty for failure to timely deposit tax pursuant to section 6656 for the

- 3 - that petitioner had $24,604 ofunreported income, giving rise to a $2,235 deficiency.2 Respondent also determined that for 2002 pe itioner was liable for a $499 addition to tax pursuant to section 6651(a)(1) for failure to file his tax return timely and a $277 addition to tax pursuant to section 6651 a)(2) for failure to pay timely.

Section 6651 provides for an addition to tax for failure to file a return by the date prescribed unless the taxpayer can establish the failure is due to reasonable cause and not willful neglect.

We hold he did to the extent stated herein; (2) whether petitioner is entitled to trade or business expense deductions for 2004 and 2Unless otherwise indicated, section references are to the applicable version ofthe Internal Revenue Code, and Rule references are to the Tax Court Rules of Practice and Proce

- 59 - We hold that respondent's Appeals officer's failure to address this discharge constitutes an abuse ofdiscretion.

MEMORANDUM FINDINGS OF FACT AND OPINION WELLS, Judge: Respondent determined that petitioner was liable for a deficiency and additions to tax for failure to file timely pursuant to section 6651(a) (1) and failure to pay timely pursuant to section 6651(a) (2) for her 2001 tax year.1 lAll section references are to the Internal Revenue Code in (continued.

On April 19, 2007, the Court entered a stipulated decision setting il forth an agreed-upon deficiency in petitioners' 2001 Federal income tax of $15,780 and an addition to tax pursuant to section 6651(a) (1) of $708.75.

We hold that he did; 1Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.

MEMORANDUM FINDINGS OF FACT AND OPINION HAINES, Judge: Respondent det-ermlned a deficiency of $67, 436, an addition to tax pursuant to section 6651 (a) (1) of $15, 938, and a penalty pursuant to section 6662 (a) of .$13, 487 with respect to petitioners' 200.5 Federal income tax.f The sole 1Unless otherwise indicated, all section references are to (continued.

We hold therefore that petitioner effectively filed his 1996-2000 returns no later than February 19, 2003.

- 7 - section 6662 of $608,800, and a delinquency addition pursuant to section 6651 (a)(1) of $151,955 .50 .

Commissioner , Accordingly, we hold that the transaction analogous the .second situation in Rev .

Pursuant to section 6651(g)(2), this certification,, with attachments,.

We hold that petitioner was a real estate professional but did not properly elect his rental real estate activities as a single activity; 3 .

For 2004 respondent determined a deficiency of $15,551 i n petitioners' Federal income tax and an addition to tax o f $3,887 .75 pursuant to section 6651( .a)(1) .

Accordingly, we hold that petitioners are liable for the addition to tax under section 6651(a)(1) .

issues we must decide are : (1) Whether petitioner is entitled to a $38,3222 bad debt deduction ; (2) whether petitioner is entitled to a $120 depreciation deduction ; (3) whether petitioner is entitled to a $6,920 amortization deduction; and (4) whether petitioner is liable for an addition to tax pursuant to section 6651(a)(1) .

Lukovsky's liabilities for the addition to tax under section 6651(a)(2) for the 2002 and 2005 tax years, but we hold that for the 2004 tax year a genuine issue of material fact as to the sufficiency of the.SFR precludes summary judgment as to the section 6651(a)(2) addition to tax .

23 - Accordingly, we hold that petitioners may not exclude from .income under section 121(a) the gain realized on the sale of the Summit Road property .18 III .

Consequently, the estate is not liable for an addition to tax pursuant to section 6651(a)(1) .

4~ MEMORANDUM FINDINGS OF FACT AND OPINION WELLS , Judge : Respondent determined a deficiency of $1,211, 748 in petitioner's 2002 Federal income tax, a failure to file addition to tax pursuant to, section 6651 ( a)(1) of $272,643, a failure to pay addition to tax pursuant to section 6651(a)(2)` in an amount to be computed at a later date, and a failure to pay estimated tax addition to tax pursuant to section 6654(a) of ~F-p MAR 3 0 2010 $40,493 .' .The following issues remain for decision :' (1

Consequently, we hold that petitioner is liable for the addition to tax under section 6651(a)(1) , D.

We hold they must recognize long-term capital gain of $44,549 ; (2) whether petitioners had unreported long-term capital gain of $328,901 for 2002 as a result of a distribution by QES .

We hold he is subject to tax; (2) whether Karen Lizalek is taxable on half o f petitioner's income as community property .

MEMORANDUM FINDINGS OF FACT AND OPINION MARVEL, Judge: In a notice of deficiency dated December 16, 2005, respondent determined that petitioner was liable for a Federal income tax deficiency of $7,794 and additions to tax pursuant to section 6651(a)(1) and (2)' for 2004 .

We hold that he does .

We hold that petitioner is liable for the addition to tax .

Respondent also determined a $314,754 .30 addition to tax pursuant to section 6651 (a) (1)' for their 2002 tax year and accuracy- related penalties under section 6662(a) of $420,973 .60 and $91,493 .60 for their 2002 and 2003 tax,years, respectively .

We hold, that "under no circumstances can (cid:127)* * * [the 2005 return]ibe rationally construed as a return ." United States v.

II 7 additions to tax pursuant to section 6651 ( a)(1) for 2001 and 2002 .

On December 11, 2006, respondent sent petitioner a notice of deficiency relating to 2004 and determined a deficiency of $20,647 and additions to tax of $1,404, $562, and $133 pursuant to section 6651(a)(1) and (2) and section 6654(a), respectively .

As Sam's Town was the only source of petitioner's gambling income and losses in 2004, we hold that petitioner proved he sustained gambling losses of $15,613 for .

Respondent determined a $12,118 deficiency in petitioners' 2001 Federal income tax, a $3,029 .50 addition to tax pursuant to section 6651(a)(1) for failing to file a timely 2001 tax return, and a $2,423 .60 accuracy-related penalty pursuant to section 6662 .

As Sam's Town was the only source of petitioner's gambling income and losses in 2004, we hold that petitioner proved he sustained gambling losses of $15,613 for .

Respondent also determined SERVED DEC 2 2 2008 - 2 - additions to tax pursuant to section 6651(a)(1) and (2) for 2004 .1 The issues for decision are : (1) Whether petitioner is liable for the deficiencies ; (2) whether petitioner is liable for an addition to tax for failing to file a Federal income tax return for 2004 ; (3) whether petitioner is liable for an addition to tax for failing to p

We hold that she is not ; (2) whether petitioner is entitled to deduct rental expenses claimed in excess of rental income she received from renting a portion of her personal residence in 2005 .

We hold that the evidence described above is sufficient to satisfy respondent's burden of proof with respect to the additions to tax under sec .

We hold that he is not .

To reflect the foregoing and respondent's concession , Decision will be entered for respondent, except as to the addition to tax Pursuant to section 6651(a)(2) .

Respondent assessed the tax reported on the return, along with additions to tax, pursuant to section 6651(a)(1) and (2), of $2,618 .10 for late filing and $581 .80 for late payment .

Respondent also determined that petitioner is liable for a tax deficiency Of $2, 876 and an addition to tax pursuant to section 6651(a) (1) of .$539.25 for taxable year 2001.

Respondent also determined that petitioner is liable for a tax deficiency of $2,876 and an addition to tax pursuant to section 6651(a)(1) of $539.25 for taxable year 2001.

- 2 - Respondent determined a deficiency in petitioner’s Federal income tax of $46,076, an addition to tax of $4,874.85 pursuant to section 6651(a)(1), an addition to tax of $3,791.55 pursuant to section 6651(a)(2), and an addition to tax of $910.21 pursuant to section 6654(a) for the taxable year 1999.

Spanier is liable for an addition to tax pursuant to section 6651(a)(1).

Spanier is liable for an addition to tax pursuant to section 6651(a)(1).

The only determination made by respondent in the notice of deficiency was that petitioner was liable for an addition to tax of $6,570.68 for the 1993 taxable year, pursuant to section 6651(a)(1).

We hold that they are.

Applying the plain language of sections 6211 and 6665(b) to the facts presented, we hold that the additions to tax under section 6651(f) determined in the notice of deficiency are not attributable to “deficiencies” within the meaning of section - 7 - 6211(a), and, therefore, the Court lacks jurisdiction over such additions to tax in this case.

Respondent contends that petitioner is liable for additions to tax pursuant to section 6651(a)(1).

e valuation election pursuant to section 2032 within 1 year after the time prescribed by law (including extensions) for filing the Federal estate tax return, the value of the gross estate may be determined by valuing all the property included in the gross estate as of the alternate valuation date.2 We hold it may not.

We hold she may not.

Additions to Tax In the Notice, respondent determined that petitioner was liable for an addition to tax of $8,121 under section 6651(a)(1) for failure to timely file, an addition to tax of $9,023 under section 6651(a)(2) for failure to timely pay, and an addition to tax of $543 under section 6654(a) for failure to make estimated tax payments. The Commissioner bears the burden of producing sufficient evidence to show that it is appropriate to impose the additions to tax. See § 7491(c); Wheeler v.

Additions to Tax In the Notice, respondent determined that petitioner was liable for an addition to tax of $37,204 under section 6651(a)(1) for failure to timely file, an addition to tax of $28,937 under section 6651(a)(2) for failure to timely pay, and an addition to tax of $3,959 under section 6654(a) for failure to make estimated tax payments. Respondent has since conceded the addition to tax under section 6654(a). Respondent bears the burden of producing sufficient evidence to show that it i

11 Section 6751(b)(1) does not apply to any addition to tax under section 6651, as was determined against Samuel and Maureen Braen.

on report that is attached to a 30-day letter and proposes section 6663 penalties can embody the initial determination. Id. at 249. 4 Section 6751(b)(2) provides that the general rule of section 6751(b)(1) does not apply to any addition to tax under section 6651. 23 [*23] Where the relevant supervisor has signed such a 30-day letter, section 6751(b)(1) is satisfied. See Belanger v. Commissioner, T.C. Memo. 2020-130, at *27–28; see also TOT Prop. Holdings, LLC v. Commissioner, 1 F.4th 1354, 1373–

Section 6651(a)(1) Addition to Tax Section 6651(a)(1) imposes an addition to tax for failure to file a return on the date prescribed (determined with regard to any extension oftime for filing) unless the taxpayer can establish that the failure is due to reasonable cause and not due to willful neglect.8 The section 6651(a)(1) addition to tax is equal to 5% of the amount oftax on the return ifthe failure is not for more than one month, with an additional 5% to be added for each month or partial mo

Section 6651(a)(1) Addition to Tax Respondent determined that petitioner was liable for an addition to tax under section 6651(a)(1). Section 6651(a)(1) imposes an addition to tax when a taxpayer fails to timely file a return unless the taxpayer establishes that the failure was due to reasonable cause and not willful neglect. The Commissioner has the burden ofproduction with respect to the section 6651(a)(1) addition to tax. See sec. 7491(c). To meet this burden, the Commissioner must produce evi

Section 6751(b) SupervisoryApproval The Hendricksons arejointly liable for additions to tax under section 6651(f) for 2002 and 2003, and Mr. Hendrickson is separately liable for additions to tax under section 6651(a)(2) for 2005 and 2006 and section 6651(f) for 2004, 2005, and 2006. They argue that section 6751(b) requires supervisory approval of additions to tax under section 6651(a) and (f) because these additions to tax are not automatically calculated through electronic means. Their position

Section 6651: Addition to Tax for Failure To File Timely Section 6651(a)(1) imposes upon taxpayers an addition to tax for failure to file a timely return. The addition to tax will not apply ifthe taxpayers show their failure was due to reasonable cause, not willful neglect. R Taxpayers demonstrate reasonable cause when they show that, despite exerc

This provision does not apply to "any addition to tax under section 6651, 6654, or 6655." Sec.

Under section 6651(g)(2), a retu prepare 1 by the Secretary pursuant to section 6020(b) is treated as a return file by the t xpayer for the purpose ofdetermining the amount ofan addition to tax under section 6651(a)(2). The 2006 substitute for return included with the exhibits deemed a itted meets the requirements ofsection 6020(b). In computing the section 6651(a (2) addition to tax as determined in the notice ofdeficiency, respondent reduced t e amount oftax shown on the substitute for return

) The section 6651(a)(3) addition itself is not subject to the deficiency procedures applicable to tax . By its nature, the addition is not fixed but increases in amount (up to a total of 25 percent of the tax) . as time passes and the tax remains unpaid . The IRS may assess the accrued addition from time to time, but it is not required to do so, and it may collect the addition without assessment . See Reese v . Commissioner , T .C. Memo . 2006-21, affd . 201 Fed . Appx . 961 (4th Cir . 2006) .

Addition to Tax for Failure To File Timely Under Section 6651 and Accuracy-Related Penalties Under Section 6662 Respondent determined that petitioners are liable for the section 6651(a) addition to tax for failing to file a timely return for 1990.

6651(a(1); United States v. Boyle, 469 U.S. 241 (1985). Their failure to file is due to reasonable cause if petitioners exercised ordinary business care and prudence and were, nevertheless, unable to file their return within the time prescribed by law. United States v. Boyle, supra at 246; sec. 301.6651-1(c)(1), Proced. & Admin. Regs. Responde

6651(a(1); United States v. Boyle, 469 U.S. 241 (1985). Their failure to file is due to reasonable cause if petitioners exercised ordinary business care and prudence and were, nevertheless, unable to file their return within the time prescribed by law. United States v. Boyle, supra at 246; sec. 301.6651-1(c)(1), Proced. & Admin. Regs. Responde

— For purposes of subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes), subsection (a) shall not apply to any addition to tax under section 6651, 6654, 6655; except that it shall apply— (1) in the case of an addition described in section 6651, to that portion of such addition which is attributable to a deficiency in tax described in section 6211; or (2) to an addition described in section 6654 or 6655, if no return is filed for the tax

npaid. See Estate of Rauhoff v. Commissioner, T.C. Memo. 1982-494; sec. 301.6651-1(f), Example (1), Proced. & Admin. Regs. Congress recognized this in enacting sec. 6651(g) and in providing two different standards under subsections (a)(1) and (2) of sec. 6651. 6We have jurisdiction over the sec. 6654(a) additions to tax in this case because income tax returns were not filed for the (continued...) - 8 - apply in certain circumstances, see Grosshandler v. Commissioner, 75 T.C. 1, 20-21 (1980); how

raudulent failure to file an income tax return;10 and (4) the section 6663 addition for the 1990 adjustments for unreported gross receipts, unreported capital gains, and unreported interest income. 9 Respondent concedes that no addition to tax under sec. 6651 for the 1987 and 1988 tax years will be assessed with respect to the portion of the underpayment that is attributable to fraud. See sec. 6653(d). 10 Under sec. 6664(b), the civil fraud penalty of sec. 6663 determined in the notice of defici

raudulent failure to file an income tax return;10 and (4) the section 6663 addition for the 1990 adjustments for unreported gross receipts, unreported capital gains, and unreported interest income. 9 Respondent concedes that no addition to tax under sec. 6651 for the 1987 and 1988 tax years will be assessed with respect to the portion of the underpayment that is attributable to fraud. See sec. 6653(d). 10 Under sec. 6664(b), the civil fraud penalty of sec. 6663 determined in the notice of defici

The provisions of Section 6651 cannot even apply to Petitioner because Petitioner did, in fact, file her returns, and Respondent has offered no proof to the contrary, nor can it.

Reasonable cause under section 6651 means the exercise of ordinary business care and prudence.

Whether petitioners are liable for the addition to tax under section 6651 determined by respondent.

tax due for each month that the return is delinquent, up to a maximum of 75 percent. Sec. 6651(f)(1) and (2). Petitioner contends that the two sets of Forms 1040NR and the "Statements in Lieu of Return" constitute valid tax returns for purposes of section 6651. - 11 - We first consider whether any of the documents submitted by petitioner constitute valid tax returns under section 6651. If not, we then consider whether petitioner's failure to file a return in 1990, 1991, and 1992 was fraudulent.

Additions to Tax and Accuracy-Related Penalties Section 6651 Respondent determined that petitioners are liable for each of the years 1989 and 1990 for the addition to tax under section 6651(a)(1) because they failed to file timely their Federal income tax return for each such year.

U.S. 241, 251 (1985). We disagree. - 9 - In United States v. Boyle, supra, the Supreme Court suggested that a taxpayer's reliance on professional advice that there is no obligation to file would generally establish reasonable cause for purposes of section 6651. Id. at 250-251. On the other hand, the Court affirmed that the orderly operation of our system of self-assessment depends on strict compliance with known filing obligations. Id. at 249. Leuschner did not advise petitioner that he need no

Section 6651(a) Addition to Tax for Delinquency The next issue for our decision is whether petitioners are liable for the addition to tax under section 6651 for failure to timely file their 1990 joint Federal income tax return.

Additions to Tax under Section 6651 Respondent has determined additions to tax for late filing for the Suttons' taxable years 1987 through 1990.

6654(a).] Unlike section 6651, the liability for the addition to tax under section 6654 does not depend on a lack of reasonable cause or the presence of willful neglect.

Thus , with no evidence probative of reasonable cause, we conclude that petitioner is liable under section 6651 (a)(1) for additions to tax for failure to timely file his Federal income tax returns for 1998, 1999, and 2000 .

p, Trustee, docket No. 5907-96, and Roland R. and Virginia A. Fox, docket No. 7178-96, were consolidated for trial, briefing, and opinion by order of this Court dated May 27, 1997. -2- Roland and Virginia Fox Addition to tax Penalty Year Deficiency Sec. 6651 Sec. 6662(a) 1989 $16,298 -- $3,260 1992 47,758 -- 3,848 1993 62,892 $15,473 12,578 Prindle International Marketing, UBO Keyus Group - Trustee Addition to tax Year Deficiency Sec. 6651 1992 $32,508 $8,127 1993 54,068 13,517 We must decide th

p, Trustee, docket No. 5907-96, and Roland R. and Virginia A. Fox, docket No. 7178-96, were consolidated for trial, briefing, and opinion by order of this Court dated May 27, 1997. -2- Roland and Virginia Fox Addition to tax Penalty Year Deficiency Sec. 6651 Sec. 6662(a) 1989 $16,298 -- $3,260 1992 47,758 -- 3,848 1993 62,892 $15,473 12,578 Prindle International Marketing, UBO Keyus Group - Trustee Addition to tax Year Deficiency Sec. 6651 1992 $32,508 $8,127 1993 54,068 13,517 We must decide th

269.00 1,572.00 1990 8,970.00 2,300.42 - 2 - After concessions,1 the issues remaining for decision are: (1) Whether petitioners' horse racing and breeding activity during 1987, 1988, 1989, and 1990 was an activity "not engaged in for profit" within the meaning of section 183; and (2) whether petitioners are liable for additions to tax pursuant to section 6651.2 FINDINGS OF FACT Some of the facts have been stipulated and are so found.

The Audit of The Estate Tax Return Respondent audited the estate tax return and proposed a deficiency of $53,790 and an addition to tax of $13,447 .46 under -7- section 6651 (a)(1) .

Section 6651 provides: SEC. 6651. FAILURE TO FILE TAX RETURN OR TO PAY TAX. (a) Addition to the Tax.--In case of failure-- (1) to file any return required under authority of subchapter A of chapter 61 (other than part III thereof), * * * on the - 8 - date prescribed therefor (determined with regard to any extension of time for filing), unless it i

Accordingly, respondent further determined 2003, 2004, and 2005 deficiencies of$15,293, $58,265, and $17,039, respectively; a section 6651 addition to tax of$852 relating to 2005; and that Mrs.

twere due to reasonable cause and not willful neglect. See sec. 6651(a)(1) and (2). Willful neglect is defined as "a conscious, intentional failure or reckless indifference." United States v. Boyle, 469 U.S. 241, 245 (1985). 49Additions to tax under sec. 6651 are not subject to sec. 6751, under sec. 6751(b)(2)(A). - 71 - Petitioners argue that their failures to file and pay were not due to willful neglect, and respondent has not contested that point. We therefore deem respondent to have conceded

twere due to reasonable cause and not willful neglect. See sec. 6651(a)(1) and (2). Willful neglect is defined as "a conscious, intentional failure or reckless indifference." United States v. Boyle, 469 U.S. 241, 245 (1985). 49Additions to tax under sec. 6651 are not subject to sec. 6751, under sec. 6751(b)(2)(A). - 71 - Petitioners argue that their failures to file and pay were not due to willful neglect, and respondent has not contested that point. We therefore deem respondent to have conceded

With respect to additions to tax under section 6651, respondent bears the burden ofproduction, but petitionerbears the burden ofproof.

Reasonable Cause The section 6651( )(1) and (2) additions to tax will not apply ifit is shown that the failure to file and/or pay timely was due to reasonable cause and not due to willful neglect.

Held, further, P is sanctioned for maintaining frivolous positions. Arnold Bruce Winslow, pro se. Mayer Y. Silber and Robert M. Romashko, for respondent. HALPERN, Judge: By notices ofdeficiency dated May 9, 2011 (notices), respondent determined deficiencies in, and additions to, petitioner's 2005 and 2006 Federal income tax as follows:1 Additions to tax Year Deficiency Sec. 6651(a)(1) Sec. 6651(a)(2) 2005 $2,706 $479 $532 2006 2,491 441 461 Petitioner assigned error to those determinations, aver

With respect to the section 6651 additions to tax, respondent's burden does not require him to establish the absence of reasonable cause.

Section 6651 ( a'-)(1) Additions to. Tax Under section 7491 (c), the Commissioner bears the burden of production with respect to a taxpayer' s liability for penalties or additions to tax .'' This means that the Commissioner "must come forward with sufficient evidence indicating that it is appropriate to impose the relevant penalty ." Higbee v . Com

The issues for decision are whether petitioner is entitled to itemized deductions in amounts greater than respondent allowed and whether petitioner is liable for the addition to tax under section 6651 (a)(1) .

The burden of proof with regard to the reasonable cause exception of section 6651(a ) remains on petitioner .

Section 6651'(a)(2) Addition to Tax Section 6651(a)(2) imposes an addition to tax of 0 .5 percent per month (up to a maximum of 25 percent) for failure tolmake timely payment of,the tax shown on a return unless the taxpayer shows that the failure is due to reasonable cause and not due to I willful neglect . The addition to tax applies only when an

We conclude that petitioners' failure to file timely their 2000 joint Federal income tax return was due to willful neglect rather than to - 11 - reasonable cause, and we sustain respondent's imposition of the section 6651 ( a)(1) addition to tax for 2000 .

Section 6651 (a)(1) imposes an addition to tax when a taxpayer fails to file a timely return . 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 tha

to section 6651 (a)(1) for 2000 and 1 Amounts are rounded to the nearest dollar . 3 - 2001; and (3) whether petitioner is liable for penalties pursuant to section 6662(a) for 1999, 2000, and 2001 . FINDINGS OF FACT Some of the facts have been stipulated and are so found . The stipulation of facts, the supplemental stipulation of facts, and the attach

spect to petitioners ' income tax liability for 1984 ; (2) whether petitioners are liable for the increased rate of interest on tax-motivated transactions under section 6621 (c) ;2 (3) whether respondent abused his discretion in failing to abate interest under section 6404 ( e) ; and (4) whether petitioners are liable for the addition to tax under section 6651 (a)(3) .

Boyle, supra at 245 (quoting section 6651 (a)(1)) ; see sec .

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-

200, 208 (2006 ) ("The Paperwork Reduction Act is not a defense to the addition to tax under section 6651 (a)(1), nor does it create a loophole in the Code") .

Respondent determined a deficiency of tax of $109,215, a n SERVED SEP 2 7 2007 - 2 - addition to tax under section 6651 (a)(1)1 of $27,303 .75, and an addition to tax under section 6654(a) of $4,364 .63 for petitioner's 2001 tax year .

MEMORANDUM FINDINGS OF FACT AND OPINION GOEKE, Judge : Respondent determined a deficiency in petitioner's 2003 Federal income tax of $6,841, an addition to tax under section 6651 (a)(1)' of $1,179 .23, an addition to tax 1 All section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure .

7491(c) ; see also Rule 142(a)(1) (the Commissioner bears the burden of proof as to his allegation in the answer concerning the increase in the section 6651 (a) (1) addition to tax) .9 The burden of showing reasonable cause under section 6651(a) remains on petitioner.

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. Section 6651 (a)(2) provides for an addition to tax for failure to make timely paymen

-3- 6662; (6) whether petitioner is liable for he fraudulent failure to file addition to tax under section 6651( ) for 2003, or alternatively an addition to tax under section 6651(a)(1) ; (7) whether petitioner is liable for additions o tax under section 6651(a)(1) for 2000, 2001, and 2002 ; and (8) whether petitioner is liable for an addition tax under section 6654(a) for 2003 .

We hold that he is liable for an addition to tax for f ilure to file a timely return under section 6651 ( a)(1) for eac year; (4) whether petitioner is liable for an addition to tax for failure to pay his tax liability under section 6651(a)(2) fo r each year in issue ., We hold that he is ; (5) whether petitioner is liable for an ddition to tax for failure to pay estimated tax under section 665 for each year in issue .

To meet his burden of production with respect to section 6651, respondent must come forward with sufficient evidence indicating that it is appropriate to impose the addition to tax.

Section 6651 Section 6651(a)(1) imposes a 5-percent addition to tax for each month or portion thereof a required return is filed after the prescribed due date, not to exceed 25 percent in the aggregate, unless such failure to file timely is due to reasonable cause and not due to willful neglect. Although not defined in the Code, "reasonable cause"

on 166(d). Addition to Tax for Failure To File Respondent contends that petitioners did not file their 2000 Federal income tax return within the time prescribed by law and, consequently, that petitioners are liable for an addition to tax pursuant to section 6651. Petitioners contend that their bank and tax records were the subject of a subpoena related to petitioner’s bankruptcy case, that the records were not returned to them until November of 2001 despite petitioner’s repeated demands, that th

Respondent has met the burden of production with respect to the additions to tax for failure to file a return under section 6651 ( a)(1) for 2002 by showing that petitioner did not file a return for that year and for failure to pay estimated tax under section 6654 by showing that petitioner did not pay estimated tax .

“Return” is not defined in section 6651, nor in any other section of the Code.

At trial, petitioner raised a reasonable cause defense to the section 6651 additions to tax, citing his 1996 surgery.

The Court holds that petitioner is liable for additions to tax under section 6651 for both years in issue.

ussion of respondent’s arguments under section 6653,21 and we hold that petitioner did not negligently fail to maintain required records, as respondent contends. 21Neither party raised or addressed the issue of whether both the addition to tax under sec. 6651 and the accuracy-related penalty may be applied to the underpayment for a taxable year in which the taxpayer failed to file a timely return. Consequently, we do not discuss the issue even though it may provide an alternative ground for deci

Additions to Tax--Failure To File Timely Return Pursuant to section 6651(a)(1), respondent determined that the Bensons are liable for additions to tax for 1989 and 1990 and that Eric is liable for additions to tax for 1993.73 An addition to tax is imposed under section 6651 for the failure to file a return within the period prescribed, unless the taxpayer shows that such failure was due to reasonable cause and not due to willful neglect.

Additions to Tax--Failure To File Timely Return Pursuant to section 6651(a)(1), respondent determined that the Bensons are liable for additions to tax for 1989 and 1990 and that Eric is liable for additions to tax for 1993.73 An addition to tax is imposed under section 6651 for the failure to file a return within the period prescribed, unless the taxpayer shows that such failure was due to reasonable cause and not due to willful neglect.

Significantly, neither interest nor the addition to tax under section 6651 was ever discussed at the hearing.

Additions to Tax--Failure To File Timely Return Pursuant to section 6651(a)(1), respondent determined that the Bensons are liable for additions to tax for 1989 and 1990 and that Eric is liable for additions to tax for 1993.73 An addition to tax is imposed under section 6651 for the failure to file a return within the period prescribed, unless the taxpayer shows that such failure was due to reasonable cause and not due to willful neglect.

ussion of respondent’s arguments under section 6653,21 and we hold that petitioner did not negligently fail to maintain required records, as respondent contends. 21Neither party raised or addressed the issue of whether both the addition to tax under sec. 6651 and the accuracy-related penalty may be applied to the underpayment for a taxable year in which the taxpayer failed to file a timely return. Consequently, we do not discuss the issue even though it may provide an alternative ground for deci

Section 6651 Addition to Tax The failure to file a timely Federal income tax return results in a mandatory addition to tax unless the taxpayer shows that the failure was due to reasonable cause and not due to willful neglect. Sec. 6651(a). The taxpayer bears the heavy burden of proving both of these elements. United States v. - 11 - Boyle, 469 U.S

awson (Mawson) were employees of petitioner for Federal employment tax purposes during 1993 through 1997; whether petitioner is subject to the addition to tax for failure to file Forms 941, Employer’s Quarterly Federal Tax Return, as required under section 6651 for all four quarters of each of the years in issue; and whether petitioner is subject to the addition to tax for failure to make a deposit of FICA taxes as required under section 6656 for the years in issue.

Accordingly, we hold that petitioner is liable for a 25 percent section 6651 addition to tax for 1991.

section 6651 (a) (1) of $ ; 611. 50 . - 2 - The Xircom company extended a job offer to Shahram Manighalam (petitioner). Petitioner then resigned from a posiiion with his prior employer, American Telephone & Telegraph (AT&T). However, Xircom rescinded its job offer before petitioner began his employment at Xircom, and AT&T refused . petitioner's re

, pro se. C. Teddy Li, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION COLVIN, Judge: Respondent determined that petitioner Edward T. O’Toole is liable for deficiencies and additions to tax as follows: - 2 - Additions to tax Year Deficiency Sec. 6651 Sec. 6654 1993 $2,441 $507 $83.05 1994 1,894 126.75 18.31 1995 4,808 852.50 176.50 1996 8,307 1,732.75 360.76 1997 2,786 364 69.99 The issues for decision are: 1. Whether petitioner bears the burden of proof as to respondent’s deficiency det

6651 – Failure To File Respondent alleged in answer (and argues herein) that petitioners are liable for additions to tax under section 6651(a) 9 Mr. Burnett was actually liable for self-employment tax on all of the newspaper income. Although one-half of an individual’s self-employment income may be attributed to his or her spouse under communi

PROCEDURE for Assessing Certain Additions to Tax.— For purposes of subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes), subsection (a) shall not apply to any addition to tax under section 6651, 6654, 6655; except that it shall apply— (1) in the case of an addition described in section 6651, to that portion of such addition which is attributable to a deficiency in tax described in section 6211; or (2) to an addition described in sectio

- 2 - notice of deficiency issued to petitioners that they were liable for a $66,798 deficiency, a $16,149 late-filing addition to tax under section 6651, and a $13,360 accuracy-related penalty for negligence under section 6662.2 For 1995, respondent determined in a notice of deficiency issued to Roland Fox (Mr.

Whether Arthur Is Liable for a Delinquency Addition Under Section 6651(a)(1) and/or a Failure To Pay an Estimated Tax Addition Under Section 6654 Section 6651 provides for an addition to tax of 5 percent per month, not to exceed 25 percent of the amount of tax required to be shown on a return, for failure to file.

Section 6651 Section 6651(a)(1) imposes an addition to tax for a taxpayer’s failure to file a required return on or before the specified filing date unless the failure is due to reasonable cause and not to willful neglect. Mr. Comey bears the burden of proving that the reasonable cause exception applies or that respondent’s determination is otherwi

As to the respective years 1989 and 1990, respondent determined that petitioners were liable for deficiencies of $2,271 and $10,471, section 6651 additions to tax of $568 and $2,618, and section 6662 accuracy-related penalties of $454 and $2,094.1 As to the respective years 1991, 1992, and 1993, respondent determined that petitioner was liable for deficiencies of $7,739, $36,363, and $2,577, section 6651 additions to tax of $1,935, $9,091, and $644, section 6654 additions to tax

- 2 - notice of deficiency issued to petitioners that they were liable for a $66,798 deficiency, a $16,149 late-filing addition to tax under section 6651, and a $13,360 accuracy-related penalty for negligence under section 6662.2 For 1995, respondent determined in a notice of deficiency issued to Roland Fox (Mr.

Whether petitioners are liable for an addition to tax under section 6651 for failure to timely file their Federal income tax returns for the years in issue.

Michael Friscia’s Section 6651 Addition to Tax Respondent determined an addition to tax under section 6651(a)(1) for Michael Friscia’s 1995 taxable year, asserting that Michael Friscia failed to file a timely return.

Addition to Tax Under Section 6651 Respondent determined an addition to tax under section 6651(a) for petitioner’s failure to file his 1994 Federal income tax return timely based upon a rate of 25 percent.

Michael Friscia’s Section 6651 Addition to Tax Respondent determined an addition to tax under section 6651(a)(1) for Michael Friscia’s 1995 taxable year, asserting that Michael Friscia failed to file a timely return.

For 1989 through 1993, section 6651 provides in pertinent part: SEC.

(2) Whether the estate is liable for the section 6651 addition to tax for the failure to file the estate tax return timely.

Even if petitioner had contended that the Forms 1040NR he submitted for 1993 and 1994 should suffice to obviate the late filing addition for those years, attempts by citizens to file in the status of a nonresident alien do not constitute valid tax returns within the meaning of section 6651.3 See, e.g., Sherwood v.

lack jurisdiction to decide whether petitioners are liable for the addition to tax under section 6651(a) because section 6404(g) does not give us jurisdiction to decide that issue. See Krugman v. Commissioner, 112 T.C. at 237 (we lack - 13 - jurisdiction under section 6404(g) to decide whether the taxpayer is liable for the addition to tax under section 6651). To reflect the foregoing, Decision will be entered for respondent.

Davis v. Commissioner, 81 T.C. 806, 820 (1983), affd. without published opinion 767 F.2d 931 (9th Cir. 1985). Petitioner filed an unsigned Form 1040 on which he reported no dollar amounts. Petitioner's Form 1040 is not a valid return for purposes of section 6651. See Edwards v. Commissioner, 680 F.2d 1268, 1269-1270 (9th Cir. 1982); United States v. Porth, 426 F.2d 519, 522-523 (10th Cir. 1970) (name and address on a form is insufficient to make it a valid return because it lacks information fro

1999-269 (holding that the taxpayer bears the burden of proof on the issue of a section 6651 addition to tax.) Accordingly, we sustain respondent's determination that the Bullocks are liable for the section 6651(a)(1) addition to tax to the extent of the underpayment relating to the disallowed Schedule C deductions for 1993 and 1994.

ented credible evidence that any portion of their underpayment was not due to fraud. Accordingly, we sustain respondent's determination for additions to tax and penalties imposed by sections 6653(b) and 6663(a). - 3377 - III. Additions to Tax Under Sec. 6651 Respondent determined that petitioner AJF was liable for the additions to tax imposed by section 6651(a). Section 6651(a) imposes an addition to tax for failing to file a timely income tax return, unless such failure to file is due to reason

The section 6651 addition applies unless the taxpayer shows that the failure to file was due to reasonable cause and not willful neglect. Petitioner admits that he did not file a 1994 return, and we have rejected his reasons for not doing so. Accordingly, we hold that petitioner is liable for the section 6651(a) addition to tax as determined by respond

ORANDUM FINDINGS OF FACT AND OPINION PARR, Judge: Respondent determined deficiencies in, an addition to, and an accuracy-related penalty on petitioners' - 2 - Federal income taxes as follows: Addition to tax Accuracy-related penalty Year Deficiency sec. 6651 sec. 6662(a) 1991 $18,438 $2,880 $3,688 1992 868 -- -- 1993 582 -- -- Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the taxable year in issue, and all Rule references are to the Tax Court R

for each prohibited transaction. Sec. 6011; sec. 54.6011-1(b), Pension Excise Tax Regs. Neither petitioner filed Forms 5330 for the years at issue. Petitioners' failure to file Forms 5330 renders each petitioner liable for the addition to tax under section 6651. See Janpol v. Commissioner, 102 T.C. 499, 500 (1994). Petitioners do not contend that they are not liable for the additions to tax under section 6651(a)(1). We treat this as petitioners' concession of this issue. See Rothstein v. Commis

ented credible evidence that any portion of their underpayment was not due to fraud. Accordingly, we sustain respondent's determination for additions to tax and penalties imposed by sections 6653(b) and 6663(a). - 3377 - III. Additions to Tax Under Sec. 6651 Respondent determined that petitioner AJF was liable for the additions to tax imposed by section 6651(a). Section 6651(a) imposes an addition to tax for failing to file a timely income tax return, unless such failure to file is due to reason

1999-269 (holding that the taxpayer bears the burden of proof on the issue of a section 6651 addition to tax.) Accordingly, we sustain respondent's determination that the Bullocks are liable for the section 6651(a)(1) addition to tax to the extent of the underpayment relating to the disallowed Schedule C deductions for 1993 and 1994.

Whether petitioners are liable for additions to tax for failure to file timely returns under section 6651 for 1994 and 1995.

e not presented credible evidence that any portion of their underpayment was not due to fraud. Accordingly, we sustain respondent's determination for additions to tax and penalties imposed by sections 6653(b) and 6663(a). III. Additions to Tax Under Sec. 6651 Respondent determined that petitioner AJF was liable for the additions to tax imposed by section 6651(a). Section 6651(a) imposes an addition to tax for failing to file a timely income tax return, unless such failure to file is due to reaso

tax for fraud under former section 6653(b)(1) and the present section 6663. Clayton v. Commissioner, 102 T.C. 632, 653 (1994). When respondent seeks to impose the addition to tax under section 6651(f),4 respondent has the burden of proof. To carry 4 Sec. 6651 provides, in pertinent part, as follows: SEC. 6651. FAILURE TO FILE TAX RETURN OR TO PAY TAX. (a) Addition to the Tax.--In case of failure-- (1) to file any return required under authority of subchapter A of chapter 61 * * * on the date pre

(2) Whether petitioners are liable for an addition to tax pursuant to section 6651 for late filing.

Accordingly, we hold that petitioner is liable for the section 6651 addition to tax.

Section 6651 -- Failure To File Respondent determined that petitioner is liable for additions to tax under section 6651(a)(1). Section 6651(a)(1) imposes an addition to tax for failure to file a return timely unless the taxpayer shows that the failure was due to reasonable cause and not willful neglect. See Kotmair v. Commissioner, 86 T.C. 1253, 12

Accordingly, we hold that petitioners are liable for 25-percent additions under section 6651 for failing to timely file their 1988 and 1989 joint Federal income tax returns.

Section 6651 imposes an addition to tax for failure to file a tax return in a timely manner, unless such failure was due to reasonable cause and not due to willful neglect. Petitioner has the burden of proving that he is not liable for the additions to tax. Rule 142(a); see Welch v. Helvering, 290 U.S. 111, 115 (1933). He contends that he filed his

d, pro sese. Bryan E. Sladek, for respondent. MEMORANDUM OPINION VASQUEZ, Judge: Respondent determined the following deficiencies in, additions to, and penalties on petitioners' Federal income taxes: Matthew Leonard: Additions to Tax Year Deficiency Sec. 6651 Sec. 6654 1990 $2,097 $524 $137 1991 2,028 507 116 - 2 - Janice Leonard: Additions to Tax Year Deficiency Sec. 6651 Sec. 6654 1990 $436 $109 --- 1991 791 198 $45 Matthew and Janice Leonard: Penalty Year Deficiency Sec. 6662(b)(1) 1993 $723

Section 6651 provides an addition to tax for failure to file a tax return in a timely manner, unless such failure was due to reasonable cause and not due to willful neglect. Petitioners concede liability for 1990, 1991, and 1992 and have the burden of proving that their 1993 return was timely. See Welch v. Helvering, 290 U.S. at 115. They contend t

because it had not been determined whether their horse activity was subject to section 183, and they did not want to prepare returns twice. Their unwillingness to file timely a return in these circumstances does not constitute reasonable cause under section 6651. See Rakoski v. Commissioner, T.C. Memo. 1993-68, affd. without published opinion 46 F.3d 1144 (9th Cir. 1995). We sustain respondent's determination on this issue. - 15 - III. Section 6654 Respondent determined that petitioners underpai

Procedure for Assessing Certain Additions to Tax.--For purposes of subchapter B of chapter 63 (relating to deficiency procedures for income, estate, - 4 - gift, and certain excise taxes), subsection (a) shall not apply to any addition to tax under section 6651, 6654, or 6655; except that it shall apply-- (1) in the case of an addition described in section 6651, to that portion of such addition which is attributable to a deficiency in tax described in section 6211; or (2) to an addition describe

- 3 - to section 6651 for 1991-95 with respect to asserted accumulated funding deficiencies for the law offices of Neal A.

Whether petitioner is liable under section 6651 for failing to file his 1986 through 1988 Federal income tax returns.

Because petitioner's reliance on the filing extensions constituted his sole defense to the section 6651 (a)(1) addition to tax, petitioner has not shown that his failure to timely file his 1991 tax return was due to reasonable cause and not willful neglect.

September 30, 1997. Eugene C. Joseph, Sr., pro se. John T. Lortie, for respondent. MEMORANDUM OPINION PARR, Judge: Respondent determined a deficiency in, and additions to, the income taxes of petitioner as follows: Additions to Tax Year Deficiency Sec. 6651 Sec. 6654 1986 $13,147 $3,287 $635 - 2 - Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the taxable year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedur

Section 6651(f) Additions to Tax Section 6651 imposes an addition to tax for failure to file a tax return.

E. Brown, pro se. Rebecca Dance Harris, for respondent. MEMORANDUM OPINION PARR, Judge: Respondent determined deficiencies in, an addition to, and a penalty on, petitioner's Federal income taxes as follows: Additions to Tax Penalties Year Deficiency Sec. 6651 Sec. 6662 1990 $44,086 $3,799 $330 1991 $26,406 -- -- - 2 - All section references are to the Internal Revenue Code in effect for the taxable years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure, unle

ns and Bruce K. Meneely, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION VASQUEZ, Judge: Respondent determined the following deficiencies in, and addition to, petitioner's taxes: Gift Tax Estate Tax Addition to Tax Year Deficiency Deficiency Sec. 6651 1980 $1,422,154 --- $355,538 1991 --- $25,131 --- - 2 - Unless otherwise indicated, all section references are to the Internal Revenue Code as in effect during 1980, and all Rule references are to the Tax Court Rules of Practice and Procedu

and the amounts that we have found hereinbefore are not income. Issue 4. Additions to Tax Under Section 6651(a)(1) Respondent determined petitioner is liable for additions to tax for failure to file income tax returns for 1991, 1992, and 1993 under section 6651. Section 6651(a)(1) imposes an addition to tax for failure to file a return on the date prescribed (determined with regard to -24- any extension of time for filing), unless it is shown that such failure is due to a reasonable cause and no

Respondent also determined that petitioner, pursuant to section 6651, is liable for an addition to tax for failing to file a tax return in a timely manner.

- 6 - A failure to file timely is due to reasonable cause for purposes of section 6651 if the taxpayer exercised ordinary business care and prudence and nevertheless was unable to file the return within the prescribed time.

Respondent also imposed a section 6651 delinquency addition to tax and a section 6654 addition to tax for failure to pay estimated tax, finding that none of the exceptions apply.

ted no income or other amounts. Petitioner offered no evidence to show, contrary to respondent's determination, that his Form 1040NR is a valid return for purposes of section 6651(a)(1). Petitioner's Form 1040NR is not a valid return for purposes of section 6651. Petitioner made no attempt to show that his failure to file a timely return was due to reasonable cause and not willful neglect except for his frivolous contentions about the income tax system. We sustain respondent's determination that

Section 6651 (a)(1) Addition to Tax For 1979 and 1980, respondent determined that petitioner, pursuant to section 6651(a)(1), is liable for additions to tax of $3,823 and $9,248, respectively. Section 6651 imposes an addition to tax for failure to timely file a Federal income tax return unless it is shown that the failure is due to reasonable cause

orporation argue that, to the extent that the threshold requirements of section 6661 are not met, the section 6661 addition to tax does not apply. Neither petitioners nor the corporation makes any argument concerning the additions to tax pursuant to section 6651. Consequently, we consider the additions to tax pursuant to sections 6651 and 6661 (to the extent that the threshold requirements are met) to have been conceded. Rybak v. Commissioner, 91 T.C. 524, 566 (1988). Accordingly, we sustain res

or example, there is no evidence here to show that there was "an honest and -6- reasonable attempt to satisfy the requirements of the tax law". Id. Accordingly, we find that petitioner's purported return does not constitute a return for purposes of section 6651. Petitioner offered no evidence to show that his failure to file a timely return was due to reasonable cause and not willful neglect, and we therefore sustain respondent's imposition of the addition to tax under section 6651(a)(1). 4. Sec

Section 6651 Respondent determined an addition to tax under section 6651(a)(1), asserting that petitioner failed to file a timely Federal income tax return for the 1989 taxable year. In order to avoid this addition to tax, petitioner must prove that its failure to file timely was: (1) Due to reasonable cause and (2) not due to willful neglect. Sec.

ions 6653(a)(1) and (2) shall not be applicable to the 1983 and 1984 taxable years for any deficiency in income taxes resulting from disallowed deductions and credits attributable to Winthrop Trust. 6. The addition to tax for delinquency pursuant to I.R.C. section 6651 shall be applicable to the 1984 taxable year for any deficiency in income taxes resulting from disallowed deductions and credits attributable to Winthrop Trust. 7. The addition to tax for substantial understatement of income tax p

references are to the Internal Revenue Code in effect for the years at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. - 2 - Docket No. 37669-85 Additions to Tax Year1 Deficiency Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6651 1979 $12,476 2$624 -- -- 1980 19,023 2 951 -- -- 1981 13,573 679 3 $4,072 Docket No. 38099-85 Additions to Tax Year1 Deficiency Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6651 1982 $28,019 $1,705 3 $3,167 1Increased interest under sec. 6621(c) was

Section 6651 Respondent determined additions to tax under section 6651(a)(1), asserting that petitioner failed to file timely Federal income tax returns. In order to avoid this addition to tax, petitioner must prove that its failure to file timely was: (1) Due to reasonable cause and (2) not due to willful neglect. Sec. 6651(a); Rule 142(a); United

Petitioners’ Discovery Request Petitioners seek to discover statistical information about respondent’s imposition of additions to tax under section 6651 against taxpayers who filed Forms 4868 for the years in issue.

liable for 100 percent of the self-employment tax. Issue 3. Additions to Tax Under Section 6651(a)(1) Respondent determined that both petitioners were liable for additions to tax for failure to file income tax returns for 1990, 1991, and 1992 under section 6651. Section 6651(a)(1) imposes an addition to tax for failure to file a return on the date prescribed (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

In her notice of deficiency, respondent determined that petitioner was liable - 45 - for additions to tax under section 6651 for TYE 8/31/89, TYE 8/31/90, and TYE 8/31/91; the addition to tax under section 6653(a) for TYE 8/31/89; and accuracy-related penalties under section 6662(a) for TYE 8/31/90 and TYE 8/31/91.

Consequently, petitioner's contention is without merit, and petitioner is liable for the section 6651 addition to tax.

FINDINGS OF FACT AND OPINION PARR, Judge: Respondent determined deficiencies in, an addition to, and penalties on income taxes of petitioners as follows: 1 Margaret Kukes did not appear for trial. - 2 - Addition to Tax and Penalties Year Deficiency Sec. 6651 Sec. 6662(a) 1991 $4,566 -0- $913 1992 11,268 $330 2,254 Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the taxable years in issue, and all Rule references are to the Tax Court Rules of Prac

references are to the Internal Revenue Code in effect for the years at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. - 2 - Docket No. 37669-85 Additions to Tax Year1 Deficiency Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6651 1979 $12,476 2$624 -- -- 1980 19,023 2 951 -- -- 1981 13,573 679 3 $4,072 Docket No. 38099-85 Additions to Tax Year1 Deficiency Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6651 1982 $28,019 $1,705 3 $3,167 1Increased interest under sec. 6621(c) was

. The issues for decision are: (1) Whether petitioner is entitled to five dependency exemptions under section 151 for the years at issue; and (2) whether petitioner is liable for an addition to tax for failure to file a timely return for 1989 under section 6651. Some of the facts have been stipulated and are so found. The stipulation of facts and exhibits received into evidence are incorporated by this reference. Petitioner resided in Eaton Park, Florida, at the time he filed his petition. Petit

in. Regs. If the filing date is a day other than the last day of a month, the period that terminates with the date numerically corresponding thereto in the succeeding calendar month and each successive period shall constitute a month for purposes of section 6651. Sec. 301.6651-1(b)(2), Proced. & Admin. Regs. As of August 15, 1990, the corporate returns were already 5 months delinquent; as of August 16, the individual return was 5 months delinquent because any fraction of a month counts as an ent

Code section 6651 has no legislative regulation having the force and effect of law to apply penalties for failure to file or pay an income tax. 20. Code section 6654 reggires an original estimated assessment of the tax and underpayment before penalties can apply. 21. Code section 6673 has absolutely no legislative implementing regulation and is without

for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION JACOBS, Judge: By separate notices of deficiency, respondent determined the following with regard to petitioners’ Federal income taxes: Accuracy-Related Additions to Tax Penalty Year Deficiency Sec. 6651 Sec. 6653(a)(1) Sec. 6661 Sec. 6662(a) 1988 $61,855 $6,222.91 $3,385.70 $15,463.75 --- 1989 52,532 --- --- --- $10,506 - 2 - Following concessions by the parties,1 the issues for decision are: (1) Whether petitioners are entitled to a claim

liable for 100 percent of the self-employment tax. Issue 3. Additions to Tax Under Section 6651(a)(1) Respondent determined that both petitioners were liable for additions to tax for failure to file income tax returns for 1990, 1991, and 1992 under section 6651. Section 6651(a)(1) imposes an addition to tax for failure to file a return on the date prescribed (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

Petitioners’ Discovery Request Petitioners seek to discover statistical information about respondent’s imposition of additions to tax under section 6651 against taxpayers who filed Forms 4868 for the years in issue.

(5) Whether petitioners are liable for the section 6651 addition to tax because they failed to timely file their 1990 income tax return.

d on a Montana cattle ranch during part 1 Petitioner conceded that she is not entitled to deduct $5,475 for employee business expenses that she claimed on her 1988 return. Respondent conceded that petitioner is not liable for additions to tax under sec. 6651 for 1989 and 1990 or under sec. 6653(a) for 1988. - 3 - of 1955. From 1955 to 1959, she held short-term or part-time positions with several employers including KGON radio, H. Richard Sellars Advertising, BG Record Distributors, White Stag Ma

concession by respondent,2 the issues for decision are: (1) Whether petitioners are entitled to deduct losses attributable to petitioner's real estate rental activity, Nadeau Rentals, in computing his net earnings from self-employment for purposes of the self-employment tax; and (2) whether petitioners are liable for additions to tax, pursuant to section 6651, for failure to file timely returns for 1991 and 1992.

sed a payment of 4 We note that petitioner's position in this regard is contrary to the clear language of sec. 6013(b)(2)(C). 5 We further note that the timing of the filing of the 1991 return is also relevant to issue (6), the addition to tax under sec. 6651. - 5 - $1,000. An IRS computer-generated report dated June 9, 1995, indicates that a substitute return was prepared for the tax year ended 1991 on June 24, 1993. The substitute return reported petitioner's adjusted gross income as $39,453 a

The only issues remaining for decision are: (1) Whether petitioners are liable for additions to tax under section 6651 for failure to file Forms 1042 (Annual Withholding Tax Return for U.S.

- 2 - an addition to tax under section 6651 in the amount of $1,866.

The only issues remaining for decision are: (1) Whether petitioners are liable for additions to tax under section 6651 for failure to file Forms 1042 (Annual Withholding Tax Return for U.S.

Addition to Tax Pursuant to Section 6651 Respondent determined that petitioners' return was filed 1 day late.

o se. Robert E. Cudlip, for respondent. - 2 - MEMORANDUM FINDINGS OF FACT AND OPINION NIMS, Judge: Respondent determined deficiencies in petitioners' Federal income tax and additions to tax as follows: Doyle A. King Additions to Tax Year Deficiency Sec. 6651 Sec. 6654 1990 $9,517 $2,334 $- 0 - 1991 15,473 3,853 878 Nevan Y. King Additions to Tax Year Deficiency Sec. 6651 Sec. 6654 1990 $28,908 $7,227 $- 0 - 1991 35,964 8,991 2,050 By Amended Answer, respondent asserts the following increased def

o se. Robert E. Cudlip, for respondent. - 2 - MEMORANDUM FINDINGS OF FACT AND OPINION NIMS, Judge: Respondent determined deficiencies in petitioners' Federal income tax and additions to tax as follows: Doyle A. King Additions to Tax Year Deficiency Sec. 6651 Sec. 6654 1990 $9,517 $2,334 $- 0 - 1991 15,473 3,853 878 Nevan Y. King Additions to Tax Year Deficiency Sec. 6651 Sec. 6654 1990 $28,908 $7,227 $- 0 - 1991 35,964 8,991 2,050 By Amended Answer, respondent asserts the following increased def

We hold that they are not liable for the addition to tax under section 6651 for 1989.

Sec. Sec. Year Deficiency 6651(a) 6662(a)1 1990 $7,594 $1,730.75 $1,518.80 1991 44,731 -- 8,946.20 1 The first page of the statutory notice of deficiency mistakenly refers to the accuracy-related penalties determined in 1990 and 1991 as pursuant to sec. 6651; however, the explanation pages of the notice of deficiency refer to the correct section, 6662(a). For the reasons discussed below, the Court will grant respondent's motion. FINDINGS OF FACT At the time the petition in this case was filed,

The only issues remaining for decision are: (1) Whether petitioners are liable for additions to tax under section 6651 for failure to file Forms 1042 (Annual Withholding Tax Return for U.S.

The only issues remaining for decision are: (1) Whether petitioners are liable for additions to tax under section 6651 for failure to file Forms 1042 (Annual Withholding Tax Return for U.S.

--- MAJORITY --- Parr, Judge: Respondent determined deficiencies in and additions to petitioner’s Federal income tax for taxable years 1987 and 1988 as follows: Additions to tax Deficiency Sec. 6651 Sec. 6653(a)(1)(A) Sec. 6653(a)(1)(B) Sec. 6661 £ 1987 $7,013 $1,380 $620 $1,753 35,574 13,398 2,856 8,894 00 00 <Ji Although petitioner filed joint returns with her husband, Elwood Cluck (Elwood), Elwood is not a party herein because his liability was determined and discharged in the U.S. Bankruptcy

Wilson argued that respondent should “(1) place the tax liabilities in uncollectible status, (2) abate the penalties under IRC § 6651, in full, for both tax years, and (3) withdraw the” NFTL.

Petitioner’s Reasonable Cause Argument8 As an exception to section 6651, a taxpayer may seek to show that reasonable cause, not willful neglect, was the reason for a failure to file a timely return or pay tax.

n- dividual making such determination.” Section 6751(c) defines “penalty” generally to include “any addition to tax or any additional amount.” But section 6751(b)(2) exempts from the requirement of supervisory ap- proval “[a]ny addition to tax under section 6651, 6654, or 6655” and “any other penalty automatically calculated by electronic means.” The question presented is whether the exaction Congress imposed in section 4973 is a “penalty” within the meaning of section 6751.

he Commissioner must produce evidence that a return, or a substitute therefor, was filed showing the tax liability for the year at issue. See Wheeler, 127 T.C. at 210. Supervisory approval is not required for determinations of additions to tax under section 6651. § 6751(b)(2)(A). 1. Robert Respondent determined additions to tax for Robert’s taxable year 2010 under both section 6651(a)(1) and (2). For calendar year taxpayers, individual income tax returns for 2010 were due in April 2011, and any

ns of $18,308,523 and $17,762,211 for 2008 and 2009, respectively; (2) whether petitioners failed to report income for 2008; (3) whether petitioners are entitled to a general business credit for 2008 and 2009; (4) whether petitioners are liable for section 6651 additions to tax for failure to timely file their tax returns for 2008 and 2009; and (5) whether petitioners are liable for section 6662 accuracy- related penalties for 2008 and 2009.

§ 6665(b)(1) (applying deficiency procedures to the portion of the addition to tax under section 6651 “which is attributable to a deficiency in tax described in section 6211”); Wilson v.

But super- visory approval is not required for “any addition to tax under section 6651.” See § 6751(b)(2)(A).

But the supervisory approval requirement does not apply to any addition to tax under section 6651 or 6654.

The Commissioner asserted only a section 6651 fraudulent failure-to-file penalty against Mr.

nnedy explains that because no excise tax return was filed when the plan assets were redirected, taxpayer 1 (and its current, predecessor, and affiliated entities) owes: (1) approximately $150 million -16- [*16] in excise taxes; (2) penalties under section 6651 for failing to file Forms 5330, Return of Excise Taxes Related to Employee Benefit Plans; (3) penalties for fraud under section 6663; and (4) penalties for false and fraudulent statements made on refund claims filed by taxpayer 1’s predec

lacks the ability to pay, noting that the IRS has already placed his account in “currently not collectible” status. Neither argument has merit. Respondent agrees that “restitution payments are payments of tax, so a res- titution payment should stop I.R.C. § 6651 and 6654 additions to tax from accru- ing.” But petitioner did not complete payment of the restitution until January 2016. The additions to tax for 2002-2006 had fully accrued before June 1, 2012, when the sentencing court entered the r

ed penalties for 2006, 2007, and 2008 as only one of the penalties may be imposed with respect to the same underpayment. See sec. 6662(b) (flush language); Le v. Commissioner, T.C. (continued...) - 3 - [*3] Penalties Addition to tax Year Deficiency sec. 6651 Sec. 6662 Sec. 6663 2006 $49,559 $12,349.00 --- $37,169 2007 30,735 9,306.75 --- 23,051 2008 16,467 4,116.75 --- 12,350 2010 4,424 971.50 $777.20 --- Respondent determined that Mr. Kramer, but not Ms. Arabuli, is liable for section 6663 frau

The Commissioner asserted only a section 6651 fraudulent failure-to-file penalty against Mr.

ction 7491(c) does not apply to an entity such as petitioner because it is not a prevailing party. See secs. 7491(a)(2)(C), 7430(c)(4)(A)(ii). Similarly, because the instant fraud penalties are due to a failure to file tax returns or to pay tax, see sec. 6651, there is no additional penalty approval requirement, see sec. 6751(b)(2)(A). Petitioner contends that imposing fraud penalties in the instant case violates the Eighth Amendment to the Constitution. The section 6663(a) fraud penalty is reme

First, written supervisory approval is not required for "any addition to tax under section 6651, 6654, or 6655", sec.

Section 6651 Addition to Tax Respondent determined that petitioner is liable for an addition to tax under section 6651(a)(1) for failure to file his 2014 Federal income tax return timely. Section 6651(a)(1) authorizes the imposition ofan addition to tax for failure to file a return timely unless it is shown that such failure was due to reasonable c

6651 2004 $9,579,083 $1,915,817 -0- 2005 1,953,677 390,735 $823,558 2008 1,205,136 241,027 -0- ¹ Petitioner's wife, Yvonne S. Breland, filed a separate petition at docket No. 22319-12. Her case has been continued pending resolution ofthe summary judgment motion in petitioner's case. - 3 - Unless otherwise indicated, all section references are

It provides that deficiency procedures "shall not apply to any - 9 - [*9] addition to tax under section 6651, 6654, or 6655".5 Instead, these additions to tax are summarily assessed.

To qualify for this waiver, the taxpayermust not have had any unreversed additions to tax imposed under section 6651 for any ofthe preceding - 9 - [*9] three years.

They are not additions to tax under section 6651, 6654, or 6655.

They are not additions to tax under section 6651, 6654, or 6655.

Supervisory approval is not required for "any addition to tax under section 6651, 6654, or 6655." Sec.

MEMORANDUM FINDINGS OF FACT AND OPINION PUGH, Judge: Respondent determined a deficiency of$1,807,886 in petitioner's Federal income tax for 2011 and an addition to tax under section 6651 of$451,971.¹ After concessions, the issues for decision are: (1) whether SoBe ¹ Unless otherwise indicated, section references are to the Internal Revenue (continued...) SERVED May 21 2018 - 2 - [*2] Entertainment International LLC (SoBe) was engaged in a trade or business for profit for tax years 2003 through 2

The bad-check penalty is presumably a penalty to which the supervisory-approval requirement ofsection 6751(b)(1) applies--it's not an addition to tax under section 6651, 6654, or 6655, and there's no indication that it's automatically calculated through electronic means--but there's no evidence in the administrative record that the SO verified that the Commissioner complied with section 6751(b)(1) when he assessed the bad-check penalty against the Melaskys.

2Respondent conceded that petitioner did not fail to report $8,843 ofgross income for 2011 and that it is not liable for the late filing addition to tax for 2013. Petitioner on briefpresented no argument as to the remaining sec. 6662 penalties and sec. 6651 addition to tax and conceded that its liability for the penalties and addition to tax depends upon the Court's holding with respect to the deductibility ofthe management fees. 3The parties' stipulation offacts and the attached exhibits are i

On May 17, 2016, the SO sent petitioner 3Section 6751(b)(1) provides that "[n]o penalty under this title shall be as- sessed unless the initial determination ofsuch assessment" receives supervisory approval.

And the addition to tax is -15- [*15] calculated from the time the payment was due, which is the due date ofthe original return, not the date the substitute for return was prepared. See sec. 6651(g)(2); sec. 301.6651-1(f), Example (2), Proced. & Admin. Regs. There is no requirement in section 6020 that the Commissioner send notice to a

This provision does not apply to "any addition to tax under section 6651, 6654, or 6655." Sec.

The SO informed petitioner that, in order for her to consider a collection alterna- tive, he had to provide her before the hearing: (1) a completed Form 433-A, Col- lection Information Statement for Wage Earners and Self-Employed Individuals; 2Section 6751(b)(1) provides that "[n]o penalty under this title shall be as- sessed unless the initial determination ofsuch assessment" receives supervisory approval.

st Under Section 6404 (notices of determination), dated August 20, 2014, sent to Salvador and Silvia Santana, husband and wife, with respect to their unpaid income tax and section 6662(a) penalties, accrued interest, and additions to tax imposed by section 6651 for years 2003 and 2004.2 On September 22, 2014, petitioners each filed a Petition for Levy Action Under Code Section 6330(d) in this Court regarding their respective notices ofdetermination.

st Under Section 6404 (notices of determination), dated August 20, 2014, sent to Salvador and Silvia Santana, husband and wife, with respect to their unpaid income tax and section 6662(a) penalties, accrued interest, and additions to tax imposed by section 6651 for years 2003 and 2004.2 On September 22, 2014, petitioners each filed a Petition for Levy Action Under Code Section 6330(d) in this Court regarding their respective notices ofdetermination.

Believing that the latter contention might have 2Section 6751(b)(1) provides that "[n]o penalty under this title shall be as- sessed unless the initial determination ofsuch assessment" receives supervisory approval.

2Section 6751(b)(1) provides that "[n]o penalty under this title shall be assessed unless the initial determination ofsuch assessment" receives supervisory approval.

Under section 6665(b), the Secretary is authorized to summarily assess additions to tax under section 6651 for late filing ofa return and for failure to pay the amount shown on the return.

st Under Section 6404 (notices of determination), dated August 20, 2014, sent to Salvador and Silvia Santana, husband and wife, with respect to their unpaid income tax and section 6662(a) penalties, accrued interest, and additions to tax imposed by section 6651 for years 2003 and 2004.2 On September 22, 2014, petitioners each filed a Petition for Levy Action Under Code Section 6330(d) in this Court regarding their respective notices ofdetermination.

include verification that the IRS has complied with section 6751(b)(1), which provides: "No penalty under this title shall be assessed unless the initial determination ofsuch assessment is personally approved (in writ- ing) by the immediate supervisor ofthe individual making the assessment." This provision does not apply to additions to tax under section 6651 or to any "penalty - 8 - automatically calculated through electronic means." Sec.

The section 6651 addition to tax will not apply ifthe taxpayer's failure to file a timely return was due to reasonable cause and not due to willful neglect. Sec. 6651(a)(1). The Commissioner bears the initial burden ofproduction in establishing liability for an addition to tax. Sec. 7491(c). The taxpayerbears the burden of raising and proving reasonabl

She reminded him that, in order for her to consider his request for an in- stallment agreement, he needed to submit Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, Form 433-D, Install- 3Section 6751(b)(1) provides that "[n]o penalty under this title shall be assessed unless the initial determination ofsuch assessment" receives supervisory approval.

st Under Section 6404 (notices of determination), dated August 20, 2014, sent to Salvador and Silvia Santana, husband and wife, with respect to their unpaid income tax and section 6662(a) penalties, accrued interest, and additions to tax imposed by section 6651 for years 2003 and 2004.2 On September 22, 2014, petitioners each filed a Petition for Levy Action Under Code Section 6330(d) in this Court regarding their respective notices ofdetermination.

And they fight about whether she owes penalties: The Commissioner asserts section 6651 failure-to-timely-file penalties for Leslie's 2007 and 2008 tax years as well as section 6662 accuracy-relatedpenalties for all three years at issue.

And they fight about whether she owes penalties: The Commissioner asserts section 6651 failure-to-timely-file penalties for Leslie's 2007 and 2008 tax years as well as section 6662 accuracy-relatedpenalties for all three years at issue.

OPINION HALPERN, Judge: Respondent determined deficiencies in petitioners' Federal income tax for 2001, along with additions to tax under section 6651 and penalties under section 6662.2 Some ofthe adjustments in the notices of 2Unless otherwise indicated, all section references are to the Internal Revenue Code (Code) in effect for 2001, and all Rule references are to the Tax Court Rules ofPractice and Procedure.

scussion Section 6751(b)(1) requires that no penalty be assessed "unless the initial determination ofsuch assessment is personally approved (in writing) by the immediate supervisor ofthe individual making such determination." Additions to tax under section 6651 (failure to file tax return or pay tax), 6654 (failure by individual to pay estimated income tax), 6655 (failure by corporation to pay estimated income tax) or "any other penalty automatically calculated through electronic means" are exce

With respect to additions to tax under section 6651, respondent bears the burden of production.

- 6 - [*6] Respondent bears the burden ofproduction, but petitioner bears the burden ofproof, with respect to the addition to tax under section 6651 and the accuracy- related penalties under section 6662.

MEMORANDUM OPINION LAUBER, Judge: With respect to petitioner's Federal income tax for 2007 and 2008, the Internal Revenue Service (IRS or respondent) determined defi- ciencies and additions to tax under section 6651¹ in the following amounts: tUnless otherwise indicated, all statutoryreferences are to the Internal Revenue Code in effect for the tax years at issue, and all Rule references are to the (continued...) SERVED MAR 1 6 2015 - 2 - [*2] Additions to tax Year Deficiency Sec.

2Respondent has conceded the section 6651 additions to tax against petition- er Tran for 2007.

tax under section 6651(a)(1) of$54,1666 for the years at issue. Claim for Interest Abatement On September 26, 2011, petitioners filed five Forms 843, Claim for Refund and Request for Abatement, in which they requested abatement ofinterest on their 6Sec. 6651 additions to tax were applied only for the 1992 and 1993 tax years at issue. - 12 - [*12] income tax liabilities for the years at issue. In their Forms 843 petitioners requested abatement ofinterest that accrued from November 1999 through 2

Section 6651 Additions to Tax A. Failure To Timely File Addition to Tax Section 6651(a)(1) imposes an addition to tax for failure to file a return on the date prescribed (including extensions) unless the taxpayer can establish that the failure is due to reasonable cause and not due to willful neglect.3 Respondent has satisfied his burden ofproducti

Addition to Tax Under Section 6651!a_)(1) Section 6651(a)(1) authorizes the imposition ofan addition to tax for failure timely to file a return unless it is shown that such failure is due to reasonable cause - 8 - [*8] and not due to willful neglect.

2Respondent has conceded the section 6651 additions to tax against petition- er Tran for 2007.

Respondent bears the burden ofproduction, and petitioner bears the burden of proof, with respect to the addition to tax under section 6651 and any accuracy- related penalty under section 6662.

Respondent bears the burden ofproduction, and petitioner bears the burden of proof, with respect to the addition to tax under section 6651 and any accuracy- related penalty under section 6662.

(2) Exceptions.--Paragraph(1) shall not apply to-- (A) any penalty imposed by section 6651; (B) any interest, penalty, addition to tax, or additional amount in a case involving fraud; (C) any interest, penalty, addition to tax, or additional amount with respectto any tax liability shown on the return; (D) any interest, penalty, addition to tax, or additional amount with respect to any gross misstatement; (E) any interest, pe

Respondent determined that petitioner had underpaid its employment and unemploymenttaxes for the periods at issue and that petitioner is liable for additions to tax under section 6651 for failing to timely file employment and unemploymenttax returns.

(2) Exceptions.--Paragraph(1) shall not apply to-- (A) any addition to tax under section 6651, 6654, or 6655; or (B) any other penalty automatically calculated through electronic means.

Section 6651 Addition to Tax Respondent determined that petitioner is liable for an addition to tax under section 6651(a)(1) for failure to timely file her 2004 Federal income tax return. Section 6651(a)(1) provides for an addition to tax for failure to file a return by the date prescribed unless the taxpayer establishes that the failure is due to

— Paragraph (1) shall not apply to— (A) any penalty imposed by section 6651; (B) any interest, penalty, addition to tax, or additional amount in a case involving fraud; (C) any interest, penalty, addition to tax, or additional amount with respect to any tax liability shown on the return; (D) any interest, penalty, addition to tax, or additional amount with respect to any gross misstatement; (E) any interest, p

Court ofAppeals held that a Form 1040 that did not include amounts or descriptions for gross income and deductions was a return for purposes ofcomputing a civil fraud penalty. Long and Conforte do not address what constitutes a return for purposes ofsec. 6651. Therefore, they are not "squarely in point". See Golsen v. Commissioner, 54 T.C. at 757. - 5 - [*5] tax liability. In addition, petitioner attached "CORRECTED" Forms 1099- MISC which indicated that he received no income and included meritl

constitute "an honest and réasonable atte pt to satisfy the requirements ofthe tax law". See Beard v. Commissioner 82 T.C. 766, 777 (1984), aff'd per curiam, 793 F.2d 139 (6th Cir. 1986). Consequently, petitioner did not file a return for purposes ofsec. 6651. See Oman v. Commissioner, T.C. Memo. 2010-276; Coulton v. Commissioner, T.C. Memo. 2005-199 (distinguishingUnited States v. Long, 618 F.2d 74 (9th Cir. 1980), which 1 ld that forms with all zeros constituted "returns" for purposes of crimi

2005 $630 $100.00 -- 2006 35,463 8,858.25 $7,092.60 2007 12,714 3,178.50 2,542.80 The issues for decision are: (1) whether petitionerreceived unreported income for 2005, 2006, and 2007; (2) whetherpetitioner is entitledto business expense deductions in excess ofthose respondent allowed for 2006 and 2007; 3 - (3) whetherpetitioner is liable for a section 6651(á)(1) addition to tax for 2005, 2006, and 2007; and (4) whetherpetitioner is liable for a section 6662(a) penalty for 2006 and 2007.

Section 6651 Addition To Tax and Section 6656 Penalty Under section 6656(a), ifa taxpayer fails to make a required deposit on the date prescribed for that deposit, a penalty equal to the applicable percentage ofthe amount ofthe underpayment, determined pursuant to section 6656(b), shall be imposed. Section 6656(a) also provides that the penalty sha

She is therefore liable for each year for the section 6651(a) (1) addition to tax for failing to file a return and the section 6651-(a) (2) addition to tax for failing to pay tax.

To meet his burden of production with respect to section 6651, respondent must come forward with sufficient evidence indicating that it is appropriate to impose the addition to tax.

Additions to TEx The final issu s are additions to tax under section 6651 and 6654.

Section 6651 Addition to Tax Section 6651(a) (1) imposes an addition to tax for failure to file a return on time unless it is shown that such failure is due to reasonable cause and not due to willful neglect. This addition to tax is in the amount of.5 percent of the tax required to be shown on the return for each month or fraction thereof until the

Substitute returns filed by the IRS under section 6020(b) are treated as returns for section 6651 (a) (2) purposes .

Respondent issued notices of deficiency on September 24, 2008, determining that petitioners were liable for deficiencies of $3,667 in income tax for the 2004 tax year and $4,146 in income tax for the 2006 tax year and additions to tax under section 6651 of $100 for the 2004 tax year and $203.25 for the 2006 tax year for failing to file timely returns for the tax.

Respondent has shown adequate grounds for the additions to tax under section 6651 (a) (1) and (2) for all years at issue and u d r section 6654 (a) but for taxable year 2000, and this Cou t will therefore sustain them.

Two types of failure-to-pay-tax penalties appear in the IËt'ernal Revenùe Code, section 6651(a) (2)- and section 6651 (a) (3) .

Held flirther, t $49; 580 paid t-oaD'.s caregivers a for iheir quálified lcng-term care services was an amount paid for medical care as defined in sec.

Section 6651 Additions to Tax A. Failure To Timely File Addition to Tax (2004, 2005, and 2006) Section 6651(a) (1) imposes an addition to tax for failure to file a return on the date prescribed (including extensions) unless the taxpayer can establish that the failure is due to reasonable cause and not due to willful neglect.2 Respondent has satisfi

- 11 - We sustain respondent' s imposition of both the section 6651 late-filing additions to tak and the section 6662(a) accuracy- related penalties.

We therefore conclude that she is liable for additions to tax under section 6651( ) (1) for 1998 and 1999.

MEMORANDUM FINDINGS OF FACT AND OPINION GALE, Judge: Respondent determined a deficiency in petitioners' 2005 Federal income tax of $3, 249 and an addition to tax under section 6651 (a) (1) 1 of $53 .

The addition to tax under section 6651 (a) (1) determined by respondent is sustained.

Additions to TEx The final issu s are additions to tax under section 6651 and 6654.

addition to tax under section 6651 of $2,078,276; (3) an accuracy-re'lated penalty under section 6662 of $8, 313, 303; and 3(4)' interest of $26, 953, 309 .

Form 5329 is a tax return within the meanind of section 6011, and failure to files Form 5329 can result in section 6651 dditions to tax.

addition to tax under section 6651 of $2,078,276; (3) an accuracy-re'lated penalty under section 6662 of $8, 313, 303; and 3(4)' interest of $26, 953, 309 .

Section 6651 ( a)(1) Addition to Tax Respondent determined that petitioner is liable for an addition to tax under section 6651 (a)(1) for failure to timely file an income tax return for 2005 . Respondent bears the burden of production with respect to petitioner ' s liability for the addition to tax . See sec . 7491 ( c) ; . Higbee v . Commissioner,

Section 6651( a)(1) imposes an addition to tax for failing to file a return by the filing deadline (determined by taking into account any extensions), unless such failure is due to reasonable cause and not due to willful neglect . The late-filing - 31 - addition to tax is 54percent of the(cid:127)net amount-of tax due on the date prescribed for pa

(1) Whether she is liable for income tax on her wages earned in 2000, 2001, 2002, and 2005 ; (2) whether she is liable for the section 6651(a)(1) late-filing addition to tax for 2000, 2001, 2002, and 2005 ; (3) whether she is liable for the section 6651`(a)(2), late- payment addition to tax for 2000, 2001, 2002, and 2005 ; and (4 ) 'Unless otherwise indicated, all section references are to the Internal Revenue Code in .effect for the years at issue, and all Rule references are to the Tax Court R

er classification dated February 21, 2007, respondent determined that for 2003 and 2004 petitioner Ardmore Day Spa, Inc. (the corporation), owed employment taxes, additions to tax, and penalties as follows: 2003 2004 Employment taxes $34,509 $29,895 Sec. 6651 addition to tax 4,627 4,079 Sec. 6656 addition to tax 2,181 1,921 Sec. 6662 penalty 2,789 2,353 The issue is whether respondent properly classified certain massage therapists and cosmetologists as petitioners' employees. FINDINGS OF FACT Th

Abatement On May 30, 2005, respondent assessed section 6651 and section 6655 additions to tax against petitioner in the total amount of $21,936 for tax year 2003 .

to tax under section 6651 ( a)(1) 'of $3,815, and a section 6662 ( a) accuracy-related penalty of $3,959 .2 The deficiency is based on .,respondent's disallowance of petitioners ' claimed losses from rental real estate activities .

A taxpayer will not be liable for an addition to tax under section 6651 ( a)(1) if the taxpayer can show that the failure to file was due to reasonable cause and not due to willful-neglect .

Addition to Tax Under Section6651.(a)(1) Section 6651 (a)(1) imposes an addition to tax for, the ' failure ,to file a return' on the, date prescribed,-.therefor .(determined.

MEMORANDUM OPINION: MARVEL, Judge : Respondent determined deficiencies in Federal income tax and an addition to tax under section 6651 (a) (1) 1 as follows : 'Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue, an d (continued .

Respondent determined a $14,5601 deficiency in petitioner's 2006 Federal income tax as well as a $4,947 .75 addition to tax under section 6651 (a)(1) and a $2,912 accuracy -related penalty under section 6662 (a) .

They claim, however, that their failure to pay was due to reasonable cause and that they are therefore not liable for a section 6651(a") (2) addition to tax.

liable for the section 6651 additions to tax for 1999, but not for 2000 and 2001 .

Additions to Tax Respondent determined that petitioner is liable for additions to tax under section 6651 (a)(1) for failure to file income tax returns for 2004 and 2005, under section 6651(a)(2) for failure to pay the amounts shown on income tax returns for 2004 and 2005, and under 6ection!6654(a) for failure to make estimated tax payments for 2004 and 2005 .

She has not shown reasonabl e cause under section 6651 (a) or an exception to the addition to tax under section 6654 .

Filed June 28, 2010 . Philip Jensen, pro se . David M . McCallum, for respondent . MEMORANDUM OPINION COHEN, Judge : Respondent determined .a deficiency of $35,074 in petitioner's Federal income tax for 2005 and additions to tax of $7,891 .65 under section 6651 (a). (1) for failure to file a return, $5,962 .58 under section 6651(a)(2) for failure to pay tax, and $1,406 .87 under section 6654 for failure to make estimated tax payments . The issues for decision are whether SERVED JUN 2 8 2010 2 -

(It is only relevant to ,additions to tax under section 6651( a)'(2), as discussed in 13 - Tinnerman v .

Section 6651( a)(1) imposes an addition to tax for failing to file a return by the filing deadline (determined by taking into account any extensions), unless such failure is due to reasonable cause and not due to willful neglect . The late-filing - 31 - addition to tax is 54percent of the(cid:127)net amount-of tax due on the date prescribed for pa

and a $264,295 addition to .HIE's 199806 tax under section 6651 (a)(1) .5 In docket No .

03, under section 6651 (a) (2) o f $-12,449 .66,2 and under section 6654(a) of $5,256 .61 .

On July- 19, 2005, the IRS mailed a notice of deficiency to petitioner determining a deficiency in income tax of $35,717 for 1999, together with the following additions to tax: Section 6651 (a)(1) (failure to file a return ), section 6651(a)(2) (failure to pay .tax shown on return), and section 6654 .(failure to pay estimated income tax ) of $5,816 .70, $6,463, and $178 , 'The record is silent as to why petitioner stopped making installment payments after August 2005 with unpaid balances remaini

we ordered the new Appeals officer to verify that respondent properly assessed an addition to tax for failure to pay under section 6651'(a)(2) for 2000 .

- 10 .- Thus, petitioner is liable for the addition to tax under section 6651 (a)(1 ) E.

On August 14, 2007, the IRS sent Florance anotice of deficiency (Notice) for the 2003 taxable year in which it te.rmined a deficiency of $1,131, and additions to tax unde r section 6651 (a) (1) of $254 .48'and under section 6651 (a) (2) of fi 21,4.,,89 .

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 the taxpayer shows that such failure is due to reasonable cause and not due to willful neglect .

6654(a) 2002 $12,853 $100 .00 $107 .25 -- 2003 13,073 -- -- -- 2005 13,997 409 .28 154 .62 $18 .6 9 The issues for decision are : (1) Whether wages constitute taxable income ; (2) whether petitioner is liable for additions to tax under section 6651 (a) (1) and (2)1 for 2002 and 2005 ; (3) whether petitioner is liable for an addition to tax under section 6654(a) for 2005 ; and (4) whether petitioner is liable for a penalty under section 6673(a)(1) .

- Thus respondent's burden with respect to section 6651 (a)(2) has been satisfied.

Section 6651(a)(1) Addition to Tax Section 6651( a)(1) imposes an addition to tax for failure to file a timely return unless the taxpayer proves that such failure is due to reasonable cause and not willful neglect .

Additions to Tax for Failure To Pay Section 6651 (a)(2) imposes an addition to tax "[i]n case of failure * * * to pay the amount shown as,tax on any return", including an income tax return.

Section 6651(a.)(1)--Failure To File, and section 6651 (a) (2) .--Failure To Petitioner-requested an extension of`time to file his 200 2 Federal income tax return, and submitted a payment ofl,.$387 with his extension request- on April 15, 2003 ;,,, however, petitioner doe s not know whether he filed'a 2002 Federal income tax return. At .trial petit

in'this, brief were the treatment of the section 6651'(a) (1 ) addition to tax\as aterm of the Thompson settlement and th e cutoff .

On July- 19, 2005, the IRS mailed a notice of deficiency to petitioner determining a deficiency in income tax of $35,717 for 1999, together with the following additions to tax: Section 6651 (a)(1) (failure to file a return ), section 6651(a)(2) (failure to pay .tax shown on return), and section 6654 .(failure to pay estimated income tax ) of $5,816 .70, $6,463, and $178 , 'The record is silent as to why petitioner stopped making installment payments after August 2005 with unpaid balances remaini

1964) (distinguishing section 6672 penalties not subject to deficiency proceedings from section 6651 additions subject to deficiency proceedings) ; Medeiros v..

V Section 6651 (a)(1) provides that in the case of failure to file a tax return on the date prescribed for filing (including any extension of time for filing), there shall be added to the tax required to be shown on the return an amount equal to 5 percent of that tax for each month or fraction thereof that the failure to file continues , not exceedin

Section 6651(f ) Section 6651(f) imposes an addition to tax. of up to 75 percent of the amount of tax required to be shown on the tax return when the failure ;to file a Federal income tax return timely is due to fraud .jj': In ascertaining whether petitioner's failure to file was fraudulent under section 6651(f), the Court considers the same elemen

Section 6651 (a)(2) Addition to Tax Respondent imposed a section 6651 ( a)(2) addition to tax for 2003 . Respondent bears the burden of production with respect to the addition to tax here in dispute . See sec . 7491(c) . In general , section 6651(a)(2) provides for an addition t o tax in!the case of the failure t pay an amount of tax shown on a ret

1964) (distinguishing section 6672 penalties not subject to deficiency proceedings from section 6651 additions subject to deficiency proceedings); Medeiros v.

The additions to tax under section 6651 do not apply, however, if the failure to timely file or timely pay is due to reasonable cause-and not,-to willful.

Alternatively, petitioner argues that he should be permitted to challenge the underlying tax liabilities for 2000 and 2001 because the liabilities were modified after the issuance of the notice of levy ; that is, when respondent conceded, in connection with the proceedings in this case , that the assessments for the section 6651 (a)(2) additions for 2000 and 2001 were erroneous and abated them.

tioner's 2002 taxable income ; (3) whether $33,928 in nonemployee compensation, $5,754 in gambling winnings, and $100 in "other income" are includable in petitioner's 2003 taxable income ; (4) whether petitioner is liable for additions to tax under section 6651 (a)(1)and (2)2 for his 2002 and 2003 tax years and under section 6654(a) for his 2003 tax year ; and (5) whether the Court should impose a penalty on petitioner under section 6673 (a) (1) .

37 under section 6651 (a)(1) and (a)(2), respectively.

not Green exercised ordinary business care and prudence in continuing to rely on his notion that Potawatomi are exempt from tax . Cf . Coulton v . Commissioner , T .C . Memo . 2005-199 (finding a tax protester's efforts unreasonable for purposes of section 6651) . On this issue, we have to side with the Commissioner--Green has a legal education and practiced tax law . He should have known better than to continue making such a frivolous argument . Surely in the 27 years since he began his career

SERVED 'MAR 1 7 2006 - 2 - MEMORANDUM FINDINGS OF FACT AND OPINION WHERRY, Judge : This case is before the Court on a petition for redetermination of Federal income tax deficiencies and additions to tax under section 6651 (a)(1) that respondent determined with respect to petitioner ' s 1999, 2000 , 2001, and 2002 taxable years .

Respondent determined a $22,092 deficiency in petitioner and his wife's 2004 joint Federal income taxes, and an additio n SERVED JUL 3 0 2008 -2- to tax under section 6651 (a)(1)1 and a penalty under section 6662(a) in the respective amounts of $5,504 and $4,418 .

T1-1 l,,,z,1 4 -2- this opinion shall no be treated as precedent for any othe r case .+ Respondent determined a deficiency in petitioners 2004 r !I Federal income tax of$944 and additions to tax under section 6651 (a) (1) and (2) ofii 'i$212 and $76, respectively .

SERVED NOV -3 7008 2 - MEMORANDUM FINDINGS OF FACT AND OPINION --WHERRY, Judge : This case is before the Court on a petition for redetermination of a Federal income tax deficiency, an addition ' to, tax, under section 6651 (a)(1), and a penalty under sect.ion.,6662.(a) that respondent determined with respect to pettioner:' s-2001 tax year .

addition to tax under, section 6651 (,a) (1) , (3) $477 .87 of the addition to<tax:under section 6651(a),(2), and (4) $475,55 of .interest as provided by law .

Respondent conceded before trial that petitioner is not liable for an addition to tax under section 6651 (a) (2) .' The issues remaining for decision are : (1) Whether petitioner was required to include in his 2002 taxable income a $23,325 distribution from a qualified retirement plan and $387 of interest income ; (2) whether petitioner is liable for the 10-percent additional tax under section 72(t) on an early distribution from a qualifi

The deemed stipulations establish that pursuant to section 6213(a), respondent mailed petitioner notices of deficiency for each of the years at issue before assessing the deficiencies and the - 17 - section 6651 and 6654 additions to tax .

With respect to the addition to tax under section 6651 (f) on which respondent has the burden of proof by clear and convincing evidence, see sec .

- 4 - the full amount of the foreign earned income exclusion for 1999 ; (5) whether petitioner is liable for additions to tax under section 6651 (a)(1) for 1998 and 1999 ; (6) whether petitioner is liable for civil fraud penalties under section 6663 (a), or in the alternative, accuracy-related penalties under section 6662(a) for 1998, 1999 , 2000, 2001 , and 2002 ; (7) whether petitioner Annette Talmage is liable for the accuracy-related penalty under section 6662 (a) for 2002

On June 16, 2003, respondent assessed the tax due, including the $859 unpaid portion of that tax, shown in petitioner's 2002 return, an addition to tax under section 6651( )(2) of $12 .88, and interest as provided by law for petitioner's taxable year 2002 .

Section 6658 (a) provides that "No a dition to the tax shall be made under section 6651, 6654, or 665 for failure to make timely payment of tax with respect to a eriod during which a case is pending under title 11 of the Un ted States Code" .

Respondent also determined an addition to tax under section 6651 (a)(1) and an accuracy- related penalty under section 6662 in the amounts of $2,386 and $4,772 , respectively .

' Section 6651 Addition to Tax Section 6651Ka)(1) provides for an addition to tax for failure to file timely Federal income tax returns unless th e taxpayer shows that such failure was due to reasonable cause and ' Accordingly ; there is no need to address respondent's alternative argument that petitioner is liable for the accuracy- related penalty u

Respondent has met his burden of production under section 7491 ( c) with respect to imposing the addition to tax under section 6651 (a)(1) .

SERVED JUN 19 201 - 2 - Respondent determined a deficiency of $5,761 in petitioner's Federal income tax for 2002 and an addition to tax of $1,326 .75 under section 6651 (a)(1) .

Petitioner also challenges respondent ' s assertion of the addition to tax under section 6651 (a)(1) for his failure to - 8 - timely file his income tax return and the addition to tax under section 6651(a)(2) for failure to timely pay his income tax for 1998 .

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 .

ilure to file timely a return was because of reasonable cause and not willful neglect . See sec . 301 .6651-1(c), Proced . & Admin . Regs . Accordingly, petitioner is liable for the addition to tax under section 6651(a)(1) for 2003 . To reflect the foregoing, Decisions will be entered under Rule 155 . 10 We note that respondent did not determine a sec. 6651 addition to tax with regard to petitioner's late filing of her 2002 return .

In a notice of deficiency, respondent determined a deficiency of $33,456 in petitioner ' s Federal income tax for the year 2003 ; an addition to tax under section 6651 (a)(1) in the amount of $6,211 ; an addition to tax under section 6651 (a)(2) in the amount of $2,208 .48 ; and an addition to tax under section 6654 .

The Commissioner has the burden of production with respect to the liability of any individual for an addition to tax under section 6651 (a)(1) .

EVE 'APR 2 5 2 - 2 - Respondent determined a deficiency of $3,913 in petitioners' 2001 Federal income tax and an addition to tax of $583 under section 6651 (a) (1) .

ilure to file timely a return was because of reasonable cause and not willful neglect . See sec . 301 .6651-1(c), Proced . & Admin . Regs . Accordingly, petitioner is liable for the addition to tax under section 6651(a)(1) for 2003 . To reflect the foregoing, Decisions will be entered under Rule 155 . 10 We note that respondent did not determine a sec. 6651 addition to tax with regard to petitioner's late filing of her 2002 return .

Additions to Tax Section 6651 ( a)(1) imposes an addition to tax of 5 percent per month or a fraction thereof up to a maximum of 25 percent for failure to file a timely return unless it is shown that such failure is due to reasonable cause and not to willful neglect .

On February 23, 1994, respondent sent to the Scotts a notice of deficiency for 1990 determining a $4,193 deficiency in income tax, an addition to tax under section 6651, and a penalty under section 6662(a).

The Court finds that petitioner did not have reasonable cause for her failure to file timely as required by section 6651 (a)(1) .

To meet his burden of production with respect to section 6651, respondent must come forward with sufficient evidence indicating it is appropriate to impose the addition to tax .

2885, as amended (Revenue Act section 530) ; (3) whether petitioner is subject to the addition to tax under section 6651 for failing to file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, and Form 941 , Employer's Quarterly Federal Tax Return, for the periods in issue ; and (4) whether petitioner is subject to the addition to tax under section 6656 for failing to make deposits of FICA taxes for the periods in issue .

For this reason we do not address petitioner's argument regarding abatement of the section 6651 failure to pay addition to tax based on reasonable cause, which first surfaced in petitioner's objection to respondent's motion for summary judgment .

OPINION MARVEL, Judge : Respondent determined a deficiency in petitioner's 2003 Federal income tax of $9,507 and additions-to - 3 - tax under section 6651 (a)(1)1 of $2,037, under section 6651 (a) (2) of $498, and under section 6654 of $245 .

Respondent also sent to petitioner a so-called 30-day letter proposing for 2001 adjustments to income and an addition to tax under section 6651 for failure to file timely .

To defend against a section 6651 addition to tax for failure timely to file a tax return, a taxpayer must establish both that failure to timely file was not due to willful neglect and that it was due to reasonable cause.

The issues for decision are whethe r MAY 1 2006 SMED 2 - petitioner is liable for tax relating to unreported income and for the section 6651 (a)(1)1 and 6654(a) additions to tax .

Respondent assessed additions to tax under section 6651 and applied a portion of her 2001 overpayment and all of her 2002 overpayment to the tax liability for 2000.

MEMORANDUM FINDINGS OF FACT AND OPINION FOLEY, Judge : The issues for decision are whether petitioner is liable for the section 6651 (a)(1)1 and 6654 (a) additions to tax relating to her 2003 Federal income tax return .

Additions to Tax Respondent determined an addition to tax under section 6651 (a)(1) for the year in issue .

pinion . In a notice of deficiency dated April 28, 2005 , respondent determined the following deficiencies and additions to tax with respect to John M . Smoll' s (petitioner ' s) 1999, 2002 , and 2003 Federal income taxes : Additions to Tax Year Tax Sec. 6651 ( f) Sec . 6654 1999 $30, 620 $22, 966 $1,482 2002 118, 533 88 , 900 3,961 2003 85,312 63,984 2,233 In a second notice of deficiency dated April 28, 2005, respondent determined the following deficiencies, additions to tax, and penalties wit

-11- Section 6665(b), entitled "Procedure for Assessing Certai n Additions to Tax," provides certain exceptions to subsection (a), including, in effect, an exception that section 6651 additions must be attributable to a deficiency for section 6665(a) to apply.

To reflect the foregoing, Decision will be entered for respondent as to the deficiencies and additions to tax under section 6654 for 2000 and 2001 and for petitioner as to the additions to tax under section 6651 for 2000 and 2001.

Respondent determined additions to tax under section 6651 ( a)(1) for the years in issue .

The notice of deficiency determined an increase in tax of $1,421,128, a section 6654 failure to pay estimated income tax penalty of $68,447 .66 and a section 6651 failure to file or to pay tax penalty of $353,433 .83 .

SERVED 'MAY 20'06 - 2 - Respondent also determined additions to tax under section 6651 (a)(2) .

V SER ED MAY 2 2006 - 2 - Respondent also determined additions to tax under section 6651 (a)(2) .

8 for the years 1999 and 2000, respectively, for supplies; (4) whether petitioners are entitled to trade or business expense deductions of $4,525 and $4,800 for the years 1999 and 2000, respectively, for wages; (5) whether petitioners are liable for section 6662(a) penalties for the years 1999 and 2000; and (6) whether petitioners are liable for a section 6651 addition to tax for the year 2000.2 2Generally, the burden of proof is on the taxpayer.

- 4 - Respondent issued a notice of deficiency to petitioners for 1998 on August 13, 2003, determining an income tax deficiency of $3,075 and an addition to tax under section 6651 of $769.25 for failure to file a tax return or to pay a tax penalty.

“Reasonable cause as applied in section 6651 has been defined as the ‘exercise of ordinary business care and prudence.’” Estate of Duttenhofer v.

“Reasonable cause as applied in section 6651 has been defined as the ‘exercise of ordinary business care and prudence.’” Estate of Duttenhofer v.

Respondent also determined that petitioner was liable for additions to tax of $3,344.45 and $1,666.11 under section 6651 and $426.25 and $217.06 under section 6654 for those years, respectively.

to tax. See Rybak v. Commissioner, 91 T.C. 524, 566 (1988). - 11 - 6651(a)(1) addition to tax for late filing should be abated for petitioner’s 1999 tax year. We review de novo whether petitioners are liable for the remaining additions to tax under section 6651. See Downing v. Commissioner, supra at 29. Section 6651(a)(1) Addition to Tax for Late Filing for 2000 Section 6651(a)(1) imposes an addition to tax for failure to file a return by the prescribed date (taking into account any extension of

The Court holds that petitioner is liable for additions to tax under section 6651 for 1999, 2000, and 2001.

file did not result from willful neglect and that the failure was due to reasonable cause. See United States v. Boyle, 469 U.S. 241, 245 (1985). Because petitioners failed to present any explanation as to their late filing, they remain liable under section 6651. Respondent determined accuracy-related penalties with respect to petitioners under section 6662(a) for one or more of the following reasons: (1) Negligence or disregard of rules or regulations or (2) any substantial understatement of inc

file did not result from willful neglect and that the failure was due to reasonable cause. See United States v. Boyle, 469 U.S. 241, 245 (1985). Because petitioners failed to present any explanation as to their late filing, they remain liable under section 6651. Respondent determined accuracy-related penalties with respect to petitioners under section 6662(a) for one or more of the following reasons: (1) Negligence or disregard of rules or regulations or (2) any substantial understatement of inc

It follows that she is not liable for any addition to tax under section 6651 for those years.

Plovan, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION COLVIN, Judge: Respondent determined deficiencies in petitioner’s Federal income tax and additions to tax as follows: - 2 - Additions to tax and penalties Year Deficiency Sec. 6653(a) Sec. 6651 Sec. 6662 1987 $1,197,033 $63,143 $269,331.98 -- 1988 274,146 16,379 61,682.50 -- 1989 10,253 –- 2,307.20 $2,050.60 1990 112,208 –- 25,247.25 22,441.60 1992 82,632 –- 18,592.68 26,526.40 1993 1,744 –- –- 354.80 1994 17,581 –- –- 3,516.20 199

6662(a) 1992 $100,630 $25,097 $20,126 1993 101,233 -- 20,247 1994 237,580 -- 47,516 The issues for decision are whether petitioners: (1) Underreported income during the years in issue, and (2) are liable for section 6651 additions to tax and section 6662(a) accuracy-related penalties.

to file did not result from willful neglect and that the failure was due to reasonable cause. See United States v. Boyle, 469 U.S. 241, 245 (1985). Because petitioners failed to present any explanation of their late filing, they remain liable under section 6651. Section 6662 imposes a penalty for substantial understatement of tax liability if the understatement exceeds the greater of 10 percent of the correct tax or $5,000. See sec. 6662(d)(1)(A) and (B). The term "understatement" is defined as

Respondent also determined additions to tax for failure to file tax returns under section 6651 and for failure to pay estimated taxes under section 6654(a) for both years.

By the amended answer to amended petition, respondent admits that there are no deficiencies in tax for 1989, 1990, and 1991, and, for 1987 and 1988, he claims additions to tax for delinquency under section 6651 and for negligence under section 6653(a).

Section 6651 Addition to Tax Section 6651(a)(1) imposes an addition to tax for failure to file a required return on the date prescribed, unless it is shown that such failure is due to reasonable cause and not willful neglect. Petitioners have not shown that such failure to file by the prescribed date was due to reasonable cause and not willful negl

1995 tax years. The deficiencies, if approved, would result in the following increases to petitioners’ income tax liabilities over the amounts claimed for the same taxable years in petitioners’ bankruptcy proceeding: Year Deficiency Additions to tax sec. 6651 Penalties sec. 6662 1993 $57,252 $14,650.50 $11,450.40 1994 59,545 14,886.25 11,909.00 1995 38,330 9,582.50 7,666.00 In response to the notice, petitioners filed a petition with this Court. Petitioners resided in Leesburg, Virginia, at the

The issues for decision are whether petitioners failed to report income for 1994 and are liable for a section 6651 addition to - 2 - tax, a section 6662 accuracy-related penalty, and a section 6673 penalty for advancing frivolous and groundless arguments.

* to determine whether the Secretary's failure to abate interest * * * was an abuse of discretion, and may order an abatement”.3 The Internal Revenue Code does not define a ministerial act. 2 Respondent apparently did abate an addition to tax under sec. 6651 for failure to timely pay the tax. 3 Sec. 6404(i) also contains jurisdictional requirements to bring such an action. Respondent has not raised any jurisdictional bar, and the Court is satisfied that these prerequisites have been satisfied.

late for each year in issue. According to petitioner, the returns were not timely filed because of an ongoing financial crisis they were - 9 - experiencing. A taxpayer’s poor financial status, however, is not reasonable cause within the meaning of section 6651. See Tabbi v. Commissioner, T.C. Memo. 1995-463. To the extent that there remains a deficiency for each year after taking into account the Schedule C deductions allowed above, respondent’s imposition of the section 6651(a)(1) addition to t

s income for 1989; (11) whether petitioners omitted $2,223 of income from prizes for 1989; (12) whether petitioners’ dividend income should be reduced by $8,732 for 1992; (13) whether petitioners are liable for additions to tax for late filing under section 6651 for 1989 and 1990; (14) whether petitioners are liable for accuracy-related penalties under section 6662(a) and (b)(1) for 1991 and 1992 because of negligence or disregard of rules or regulations; and - 4 - (15) whether petitioners are l

With regard to the section 6651 late filing additions to tax, we find petitioner’s testimony credible and persuasive.

iency procedures applicable to income, estate, gift, and certain excise taxes are equally applicable to additions to tax. See sec. 301.6659-1(a) and (b), Proced. & Admin. Regs.10 Section 6665(b) excludes from this general rule additions to tax under section 6651. As further provided in paragraph (1) of section 6665(b), however, the exclusion is not applicable “to that portion of such addition which is attributable to a deficiency in tax described in section 6211”. Thus, the determination of whet

titioner. . Henry E. O'Neill, for respondent. . MEMORANDUM FINDINGS OF FACT AND OPINION RUWE, Judge: Respondent determined deficiencies in petitioner's Federal income taxes and additions to tax' as follows : SERVED JAN 1 1 2000 6 1 Additions to Tax Sec. 6651 Sec. Sec. 6653 Sec. 6653 Sec. 6653 Sec. Ym Deficiency (a) (1) 6651(f) (b) (1) (A) (b) (1) (b) (1) (B) 6654 1986 $54,593 --- --- $40,945 --- 2--- --- 1987 73,676 --- --- 55,257 --- 2--- $2,791 1988 85,992 --- --- --- $64,494 --- 5,158 1989 13

individuals as employees rather than as independent contractors. On August 25, 1987, respondent prepared Form 4666, Summary of Employment Tax Examination, indicating that the following employment taxes and penalties were owed by petitioner: - 3 - Sec. 6651/ Year Form Tax 6656 Penalty Total 1984 940 $ 520.07 $ 182.03 $ 702.10 1984 941 7,184.81 2,491.75 9,676.56 1985 940 904.50 316.58 1,221.08 1985 941 6,681.35 2,322.55 9,003.90 1986 940 911.12 318.89 1,230.01 1986 941 7,301.22 2,536.56 9,837.78

ON CHABOT, Judge: Respondent determined deficiencies in individual income tax and additions to tax under sections 6651(a)(1)1 (late filing of tax return) and 6653(a) (negligence, etc.) against petitioner as follows: Additions to Tax Year Deficiency Sec. 6651 Sec. 6653(a) Sec. 6653(a)(1)Sec. 6653(a)(2) 1981 $11,194 $560 1982 14,406 $3,602 $720 50% interest on $14,406 1983 2,843 142 50% interest on 2,843 1984 1,212 165 61 50% interest on 1,212 1985 6,332 317 50% interest on 6,332 After concessions

Judge: Respondent determined deficiencies in individual income tax and additions to tax under sections 6651(a)(1)1 (late filing of tax return) and 6654 (underpayment of estimated tax) against petitioner as follows: Additions to Tax Year Deficiency1 Sec. 6651(a(1) Sec. 6654 1993 $61,611 -- $240 1994 54,821 $4,955 993 1995 64,679 9,295 2,841 1 Of these amounts, $10,279 for 1993, $11,483 for 1994, and $12,200 for 1995 are self-employment taxes, under ch. 2; the remaining amounts are ch. 1 income ta

rd J. Schneck and Maria T. Stabile, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION COLVIN, Judge: Respondent determined that petitioners have deficiencies in income tax and additions to tax as follows: - 2 - Addition to tax Year Deficiency Sec. 6651 1989 $67,419 $17,586 1990 16,501 7,409 1991 16,765 6,947 1992 14,961 None Petitioners formed Cabana Boy Productions, Inc. (Cabana Boy), a subchapter C corporation. Cabana Boy tried unsuccessfully to produce a movie. Petitioners contend that

iciency procedures applicable to income, estate, gift, and certain excise taxes are equally applicable to additions to tax. See sec. 301.6659-l(a) and (b), Proced. & Admin. Regs. Section 6665(b) excludes from this general rule additions to tax under section 6651. As further provided in paragraph (1) of section 6665(b), however, the exclusion is not applicable “to that portion of such addition which is attributable to a deficiency in tax described in section 6211”. Thus, the determination of whet

Liability for Penalties or Additions to Tax On April 12, 1993, respondent told petitioner that the penalty for filing a return late under section 6651 is $854.08.

tax: - 2 - Robert L. Boehm and Winona J. Mowrey Docket No. 14355-97 Penalty Taxable Year Ended Deficiency Sec. 6662 December 31, 1993 $30,974 $6,195 Crestmark Mortgage Services, Inc. Docket No. 14356-97 Addition to Tax Taxable Year Ended Deficiency Sec. 6651 July 31, 1994 $8,781 $2,195 After concessions, the issues for decision are: (1) Whether petitioners Robert L. Boehm and Winona J. Mowrey (the individual petitioners) are entitled to a deduction of $103,056 for a “Real Estate & Mortgage Rate

ersonal liability for these income tax liabilities on the ground that he did not have knowledge of the estate's unpaid taxes prior to disbursing the estate's assets. 1The income tax liabilities of the estate are as follows: Additions to Tax Year Tax I.R.C. sec. 6651 1989 $4,658.50 $2,071.03 1990 41,080.00 15,815.80 1991 52.00 57.20 - 3 - FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulation of facts is incorporated herein by this reference. Petitioner resided

tax: - 2 - Robert L. Boehm and Winona J. Mowrey Docket No. 14355-97 Penalty Taxable Year Ended Deficiency Sec. 6662 December 31, 1993 $30,974 $6,195 Crestmark Mortgage Services, Inc. Docket No. 14356-97 Addition to Tax Taxable Year Ended Deficiency Sec. 6651 July 31, 1994 $8,781 $2,195 After concessions, the issues for decision are: (1) Whether petitioners Robert L. Boehm and Winona J. Mowrey (the individual petitioners) are entitled to a deduction of $103,056 for a “Real Estate & Mortgage Rate

perating loss carryforward, relating to 1989; (2) failed to report $2,302 and $4,495 of capital gain income relating to stock sales in 1990 and 1991, respectively; (3) failed to file timely returns relating to 1989, 1990, and 1991 and are liable for section 6651 additions to tax; (4) failed to pay estimated income tax relating to 1990 and 1991 and are liable for section 6654 additions to tax; and (5) were negligent in determining their 1989 tax liability and are liable for a section 6662 penalty

. We therefore hold that petitioner is not liable under 31 U.S.C. section 3713(b) for the unpaid tax liabilities in question. Decision will be entered for petitioner. The income tax liabilities of the estate are as follows: Year Tax Additions to tax I.R.C. sec. 6651 1989 $4,658.50 $2,071.03 1990 15,815.80 41,080.00 1991 52.00 57.20 Both petitioner and Mr. Lahr were credible when they testified to their ignorance of the tax liabilities in question. Indeed, respondent had no objection to petitione

Liability for Penalties or Additions to Tax On April 12, 1993, respondent told petitioner that the penalty for filing a return late under section 6651 is $854.08.

This section further provides that if the 50 percent penalty resulting from the fraud is assessed, the addition to tax under section 6651 for failure to file a return will not be assessed with respect to the same underpayment.

(SPC-FL), to petitioners were taxable distributions. Respondent concedes that the advances were, in fact, loans made by the corporations to petitioners. Respondent further determined that petitioners were liable for (1) additions to tax pursuant to sec. 6651 for failure to file timely Federal income tax returns for taxable years ending Dec. 31, 1991 and 1992, respectively, and (2) accuracy-related penalties pursuant to sec. 6662 for negligence or disregard of the rules or regulations. Petitione

6662 8933-94 1991 $3,466 --- --- 6564-96 1992 3,435 --- --- 1993 2,823 --- --- 26100-96 1994 2,946 $737 $589 1995 4,860 --- 972 After concessions by petitioners, including the section 6651 addition to tax, the issues for decision in these consolidated cases are: (1) Whether petitioners are entitled, on the basis of section 104(a)(2), to exclude the entire $36,000 payment, or a portion thereof, that petitioner David R.

(SPC-FL), to petitioners were taxable distributions. Respondent concedes that the advances were, in fact, loans made by the corporations to petitioners. Respondent further determined that petitioners were liable for (1) additions to tax pursuant to sec. 6651 for failure to file timely Federal income tax returns for taxable years ending Dec. 31, 1991 and 1992, respectively, and (2) accuracy-related penalties pursuant to sec. 6662 for negligence or disregard of the rules or regulations. Petitione

ccordingly, petitioners are not liable for the accuracy-related penalties for the years in issue pursuant to section 6662(a). Respondent also determined that petitioners were liable for an addition to tax for the year 1990 for failure to file under section 6651. Petitioners offered no evidence explaining their failure to timely file their 1990 return. Thus, petitioners are liable for the addition to tax for the year 1990 under section 6651(a)(1) in an amount to be computed under Rule 155. 9 In L

which to make a reasonable estimate of the tax liability." Boatman v. Commissioner, T.C. Memo. 1995-356 (citing Estate of Duttenhofer v. Commissioner, 49 T.C. 200, 205 (1967), aff'd, 410 F.2d 302 (6th Cir. 1969)). Neither can petitioners avoid the I.R.C. § 6651 (a)(1) penalty by attempting to lay the blame on a representative for failing to timely file a return. "To demonstrate reasonable reliance, it must be shown that the advisor had sufficient knowledge of the taxpayer's relevant financial c

6662 8933-94 1991 $3,466 --- --- 6564-96 1992 3,435 --- --- 1993 2,823 --- --- 26100-96 1994 2,946 $737 $589 1995 4,860 --- 972 After concessions by petitioners, including the section 6651 addition to tax, the issues for decision in these consolidated cases are: (1) Whether petitioners are entitled, on the basis of section 104(a)(2), to exclude the entire $36,000 payment, or a portion thereof, that petitioner David R.

6662 8933-94 1991 $3,466 --- --- 6564-96 1992 3,435 --- --- 1993 2,823 --- --- 26100-96 1994 2,946 $737 $589 1995 4,860 --- 972 After concessions by petitioners, including the section 6651 addition to tax, the issues for decision in these consolidated cases are: (1) Whether petitioners are entitled, on the basis of section 104(a)(2), to exclude the entire $36,000 payment, or a portion thereof, that petitioner David R.

This section further provides that if the 50 percent penalty resulting from the fraud is assessed, the addition to tax under section 6651 for failure to file a return will not be assessed with respect to the same underpayment.

(SPC-FL), to petitioners were taxable distributions. Respondent concedes that the advances were, in fact, loans made by the corporations to petitioners. Respondent further determined that petitioners were liable for (1) additions to tax pursuant to sec. 6651 for failure to file timely Federal income tax returns for taxable years ending Dec. 31, 1991 and 1992, respectively, and (2) accuracy-related penalties pursuant to sec. 6662 for negligence or disregard of rules or regulations. Petitioners c

6651 1992 $41,489 $8,105 $8,298 1993 47,492 9,590 9,498 1994 54,799 --- 10,960 The adjustments to income that gave rise to the deficiencies that were determined by respondent in the two notices of deficiency were as follows: Adjustments 1992 1993 1994 Const. dividends $111,953 $125,237 $139,462 Rental income 9,447 11,735 16,943 Itemized deduct

y be offset against overpayment); Loftin & Woodard, Inc. v. United States, 577 F.2d 1206, 1245-1247 (5th Cir. 1978). 8By conceding that the altered Form 1040 is a valid return, respondent necessarily concedes that petitioner cannot be liable for the sec. 6651 addition to tax for failure to file. - 13 - Section 6653(a)(1) provides that "If any part of any underpayment (as defined in subsection (c)(1)) * * * is due to negligence or intentional disregard of rules or regulations, * * * there shall b

Austin, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION WHALEN, Judge: Respondent determined deficiencies, an addition to tax, and penalties with respect to petitioner's Federal income tax as follows: Addition to Tax Penalty Year Deficiency Sec. 6651 Sec. 6662 1989 $27,650.70 -- $5,530.14 1990 17,324.00 $4,331 3,445.00 - 2 - All section references are to the Internal Revenue Code as in effect for the years in issue. After concessions, the issues remaining for decision are: (1) Whether pe

Laubach, Jr., for respondent. MEMORANDUM OPINION WHALEN, Judge: Respondent determined the following deficiencies in, and additions to, petitioner's income tax for taxable years 1984 through and including 1992: - 2 - Additions to Tax Year Deficiency Sec. 6651 Sec. 6654 1984 $4,086 $677 $149 1985 5,348 871 173 1986 6,076 971 162 1987 72,764 17,607 3,395 1988 5,199 698 161 1989 5,583 748 183 1990 5,962 796 189 1991 6,183 824 171 1992 6,626 1,039 170 All section references are to the Internal Revenu

re consolidated herewith for purposes of briefing and opinion: Jean Muldavin, docket No. 153- 92; Jean and Roger Muldavin, docket No. 23624-92; and Jean and Roger Muldavin, docket No. 23660-92. - 2 - Roger Muldavin Additions to Tax Year Deficiency Sec. 6651 Sec. 6653(a) Sec. 6654 Sec. 6661 1985 $142,578.85 $30,936.52 $7,128.94* $6,798.00 $30,937.00 1986 113,423.25 21,292.62 5,671.16* 4,177.00 21,293.00 1987 56,026.00 13,957.00 2,801.00* 3,016.00 --- *Plus 50 percent of the interest on $123,746.0

cies in and additions to petitioner's Federal income and excise taxes for petitioner’s taxable years ending September 30, 1987, 1988, 1989, and 1990, as follows: - 2 - Taxable Year Income Tax Excise Tax Additions to Tax Ending Deficiency Deficiency Sec. 6651 Sec. 6659A 9/30/87 $61,816 -- -- $18,555 9/30/88 55,075 $22,679 $ 5,670 16,523 9/30/89 52,970 45,359 11,340 15,891 9/30/90 -- 45,359 11,340 -- Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for

re consolidated herewith for purposes of briefing and opinion: Jean Muldavin, docket No. 153- 92; Jean and Roger Muldavin, docket No. 23624-92; and Jean and Roger Muldavin, docket No. 23660-92. - 2 - Roger Muldavin Additions to Tax Year Deficiency Sec. 6651 Sec. 6653(a) Sec. 6654 Sec. 6661 1985 $142,578.85 $30,936.52 $7,128.94* $6,798.00 $30,937.00 1986 113,423.25 21,292.62 5,671.16* 4,177.00 21,293.00 1987 56,026.00 13,957.00 2,801.00* 3,016.00 --- *Plus 50 percent of the interest on $123,746.0

re consolidated herewith for purposes of briefing and opinion: Jean Muldavin, docket No. 153- 92; Jean and Roger Muldavin, docket No. 23624-92; and Jean and Roger Muldavin, docket No. 23660-92. - 2 - Roger Muldavin Additions to Tax Year Deficiency Sec. 6651 Sec. 6653(a) Sec. 6654 Sec. 6661 1985 $142,578.85 $30,936.52 $7,128.94* $6,798.00 $30,937.00 1986 113,423.25 21,292.62 5,671.16* 4,177.00 21,293.00 1987 56,026.00 13,957.00 2,801.00* 3,016.00 --- *Plus 50 percent of the interest on $123,746.0

n Peterson, pro sese. Mark Hulse, for respondent. MEMORANDUM OPINION TANNENWALD, Judge: Respondent determined the following deficiencies and additions to tax and a penalty in petitioners' Federal income taxes: Year Deficiencies Additions and Penalty Sec. 6651 Sec. 6653 Sec. 6662 1988 $ 3,868 --- $193 --- 1989 $12,366 $1,378 --- $2,473 - 2 - After concessions by the parties, the issue for decision is whether petitioners may take a business bad debt deduction for payment made on a guarantee of cor

to Tax Penalty Year Deficiency Sec. 6653(a)1 Sec. 6661 Sec. 6662(a) 1986 $29,594 $1,480 $7,399 -0- 1987 8,447 422 2,112 -0- 1989 4,360 -0- -0- $872 1990 3,647 -0- -0- 729 Michael Michoff, Jr. (Michoff, Jr.): Additions to Tax Penalty Year Deficiency Sec. 6651 Sec. 6653(a) Sec. 6654 Sec. 6661 Sec. 6662(a) 1986 $103,152 $25,788 1$5,158 $4,991 -0- -0- 1987 30,846 7,712 11,542 1,668 -0- -0- 1988 8,379 -0- 419 -0- $2,095 -0- 1989 24,921 -0- -0- -0- -0- $4,984 Michael Michoff, Jr., and Kimberly Michof

to Tax Penalty Year Deficiency Sec. 6653(a)1 Sec. 6661 Sec. 6662(a) 1986 $29,594 $1,480 $7,399 -0- 1987 8,447 422 2,112 -0- 1989 4,360 -0- -0- $872 1990 3,647 -0- -0- 729 Michael Michoff, Jr. (Michoff, Jr.): Additions to Tax Penalty Year Deficiency Sec. 6651 Sec. 6653(a) Sec. 6654 Sec. 6661 Sec. 6662(a) 1986 $103,152 $25,788 1$5,158 $4,991 -0- -0- 1987 30,846 7,712 11,542 1,668 -0- -0- 1988 8,379 -0- 419 -0- $2,095 -0- 1989 24,921 -0- -0- -0- -0- $4,984 Michael Michoff, Jr., and Kimberly Michof

nder sec. 6512(b)(1) and, therefore, respondent is free to raise the defense provided in Lewis v. Reynolds, 284 U.S. 281 (1932). See Estate of Mueller v. Commissioner, supra; Woods v. Commissioner, 92 T.C. 776 (1989). By conceding that the altered Form 1040 is a valid return, respondent necessarily concedes that petitioner cannot be liable for the sec. 6651 addition to tax for failure to file.

1987 Petitioners argue that respondent’s failure to retain the envelope bearing the 1987 return in their file should relieve them of liability for the section 6651 addition to tax.

6651 6653 6653 6653 6653 Sec. 6663 Year Deficiency (a)(1) (b)(1) (b)(2) (b)(1)(A) (b)(1)(B) 6661 (a) 1985 $34,812 --- $23,770 1 --- --- $8,703 --- 1986 247,288 --- --- --- $192,009 1 61,812 --- 1987 46,021 --- --- --- 42,339 1 11,505 --- -2- 1988 121,986 --- 92,640 --- --- --- 30,497 --- 1989 110,248 $27,562 --- --- --- --- --- $82,686 1 50 p

and have further stipulated that petitioner is liable for additions to tax pursuant to secs. 6651, 6653(a), and 6661 for that year. The parties have also stipulated that for its fiscal year 1989, petitioner is not liable for an addition to tax under sec. 6651, but that petitioner will be subject to an addition to tax under sec. 6661 for its fiscal year 1989 if there is a substantial understatement of tax as defined in sec. 6661(b) for that year, and that petitioner is liable for an addition to t

Petitioners have conceded that the section 6651 addition to tax for failing to file their return in a timely manner is applicable to their 1988 joint income tax return and to Mr.

exhibits are so found and are incorporated herein by reference. In the notice of deficiency, respondent determined the following deficiencies and additions to tax with respect to petitioners' tax years as indicated: Additions to Tax Year Deficiency Sec. 6651 Sec. 6653(a)1 Sec. 6661 1982 $1,912 $478 $96 -- 1983 39,739 9,935 1,987 $9,935 1984 58,887 14,722 2,944 14,722 1985 13,453 3,363 673 3,363 1986 50,112 12,528 2,506 12,528 1987 626 157 31 -- 1 Additions to tax (50 percent of interest due) un

Failure to file a return--section 6651 Section 6011(a) requires that "any person made liable for any tax * * * shall make a return or statement according to the forms and regulations prescribed by the Secretary." Treasury regulations require that returns contain "therein the information required by the applicable regulations or forms." Sec.

n issue, unless otherwise indicated. All Rule references are to the Tax Court Rules of Practice and Procedure. - 3 - amounts of $16,941 and $100,472.2 For those same years, respondent determined the following additions to tax. Additions to Tax Year Sec. 6651 Sec. 6653(a)(1)1 Sec. 6653(a)(2) Sec. 6659 1980 $847 1981 $3,619 5,024 2 $30,141 1 For 1980, the addition to tax is under sec. 6653(a). 2 50 percent of the interest payable with respect to the portion of the underpayment attributable to negl

m, P has failed to prove that the income items in dispute were not gross income to him. 2. Held, further, P is not entitled to any of the disputed deductions disallowed by R. 3. Held, further, R’s determination of the disputed addition to tax under sec. 6651, I.R.C., is sustained. 4. Held, further, R’s determination of additions to tax under sec. 6653(a), I.R.C., is sustained. - 2 - 5. Held, further, R’s determination of additions to tax under sec. 6661, I.R.C., is sustained. Samuel G. Weiss, fo

ntered in accordance with respondent's computation under Rule 155. ***(...continued) fact that petitioner was not negligent on his reporting position does not obviate the increased rate of interest under sec. 6621, or the delinquency addition under sec. 6651. Although the Commissioner may waive the applicability of sec. 6661 for reasonable cause and good faith, see sec. 6661(c), she can only do so after the taxpayer presents his or her claim to the Commissioner with sufficient evidentiary suppor

n issue, unless otherwise indicated. All Rule references are to the Tax Court Rules of Practice and Procedure. - 3 - amounts of $16,941 and $100,472.2 For those same years, respondent determined the following additions to tax. Additions to Tax Year Sec. 6651 Sec. 6653(a)(1)1 Sec. 6653(a)(2) Sec. 6659 1980 $847 1981 $3,619 5,024 2 $30,141 1 For 1980, the addition to tax is under sec. 6653(a). 2 50 percent of the interest payable with respect to the portion of the underpayment attributable to negl

Failure to file a return--section 6651 Section 6011(a) requires that "any person made liable for any tax * * * shall make a return or statement according to the forms and regulations prescribed by the Secretary." Treasury regulations require that returns contain "therein the information required by the applicable regulations or forms." Sec.

Respondent, in the notice of deficiency in this case, mailed August 21, 1995 (August notice), - 2 - determined section 49751 excise tax deficiencies and section 6651 additions to tax for failure to file excise tax returns for the taxable years 1991, 1992, 1993, and 1994.

In the notice of deficiency for 1988 and 1989, respondent determined deficiencies in petitioners' Federal income tax in the amounts of $6,581.04 and $9,256, respectively, and an addition to tax for 1988 under section 6651 in the amount of $1,180.75.

On brief, respondent has conceded the additions to tax that were determined against petitioner under section 6651 for both 1990 and 1991; respondent has also conceded the addition to tax under section 6654 for the year 1990.

6651 effective in cases of failure to file returns the due date for which (determined without regard to extensions) is after December 31, 1989. - 6 - assignments of error as to which the burden is on respondent. In the petition, all additions to tax are disputed. When determining whether a failure to file is fraudulent under section 6651(f),

ed November 29, 1995. R determined deficiencies in income tax based in part upon: (1) a bank deposit analysis for the years 1982 through 1987, and (2) the disallowance of a deduction claimed in 1987. Respondent also determined additions to tax under sec. 6651, I.R.C., for failure to file, and sec. 6653(a), I.R.C., for negligence. 1. Held: Ps have in part carried and in part failed to carry their burden of proving that the income items in dispute were not gross income to them. 2. Held, further, R

y of $8,071,168.00, $16,697,809.00 and $21,610,869.00, respectively. A chart contained in the notice of liability sets forth the amounts of the deficiencies and additions to tax determined by respondent as follows: _Additions to tax_ Year Deficiency Sec. 6651 Sec. 6653(a)(1) Sec. 6653(a)(1)(A) Sec. 6656 1984 $4,891,617 $1,222,904 $244,581 - - - $489,162 1985 10,119,885 2,529,971 ^05,994 - - - 1,011,988 1986 13,506,793 3,376,698 - - - $675,340 1,350,679 A Form 5278 (Statement-Income Tax Changes)