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to file returns. Our determinations with respect to fraud,
however, necessarily reject any argument that the failure to file
returns was due to reasonable cause or that the underpayments of
tax were not at least due to negligence.
Section 6654 Addition to Tax
Respondent also determined that petitioner is liable for the
addition to tax under section 6654 for the years in issue.
Section 6654 provides an addition to tax for failure to make
timely and sufficient payments of estimated tax.
Petitioner argues that, because he did not have taxable
income for any of the years in issue, he was not required to pay
estimated taxes. We have determined, however, that petitioner
had taxable income during the years in issue.
The section 6654 addition to tax is mandatory unless
petitioner can place himself within one of the computational
exceptions provided by section 6654. Grosshandler v.
Commissioner, 75 T.C. 1, 20-21 (1980). None of the exceptions of
section 6654(d) for 1982, 1983, and 1984, or section 6654(e) for
1985 and 1986, apply in this instance.
Petitioner has further asserted that the imposition of this
addition to tax would be inequitable in this case because he had
an "honest" belief that he did not have taxable income during the
years in issue. "This section has no provision relating to
reasonable cause and lack of willful neglect. It is mandatory
and extenuating circumstances are irrelevant." Estate of Ruben
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