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and September 15 of that year and January 15 of the following
year, sec. 6654(c)(2), and the interest charge on any
underpayment runs from the due date of the installment to April
15 of the following year (or to the date of payment, if earlier),
sec. 6654(b)(2).
There are two mechanical exceptions to the applicability of
the section 6654 addition to tax. First, as relevant to this
case, the addition is not applicable if the tax shown on the
individual’s return for the year in question (or, if no return is
filed, the individual’s tax for that year), reduced for these
purposes by any allowable credit for wage withholding, is less
than $500.5 Sec. 6654(e)(1). Second, the addition is not
applicable if the individual’s tax for the preceding taxable year
was zero. Sec. 6654(e)(2).
B. Section 7491(c)
Section 7491(c) imposes the burden of production in any
court proceeding (i.e., the burden of moving forward with
evidence) on the Commissioner with respect to the liability of
any individual for penalties and additions to tax.6 In order to
5 Effective for taxable years beginning after Dec. 31,
1997, the threshold amount is $1,000. Taxpayer Relief Act of
1997, Pub. L. 105-34, sec. 1202, 111 Stat. 994. Respondent is no
longer asserting additions to tax under sec. 6654 for
petitioner’s 1998 and 1999 taxable years.
6 Sec. 7491(c) applies to court proceedings arising in
connection with examinations commencing after July 22, 1998.
Internal Revenue Service Restructuring and Reform Act of 1998,
(continued...)
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