- 50 -
The addition is imposed at the rate determined by section 6621.21
Imposition of the tax is mandatory where prepayments of the tax,
either through withholding or by making estimated quarterly
payments, do not satisfy the specified percentages of total
liability required under the statute. Grosshandler v.
Commissioner, 75 T.C. 1, 20-21 (1980); see also Swonder v.
Commissioner, T.C. Memo. 1994-430. Section 6654 allows no
generally available reasonable cause or willful neglect defenses.
See Swonder v. Commissioner, supra; cf. sec. 6654(e)(3)(B)
(reasonable cause/willful neglect defense allowed for newly
retired or disabled individuals).
Once respondent determines that petitioner is liable for the
addition to tax under section 6654, the burden shifts to
petitioner to prove, by a preponderance of the evidence, that
respondent's determination was incorrect. Rule 142(a); Register
v. Commissioner, T.C. Memo. 1988-390.
Petitioner presented no evidence on this issue. He did not
pay any estimated income tax in either 1986 or 1987 beyond
minimal withholding on the wages reported by Sam Gilbert
Associates in 1986 and Fort Apache, Inc. in 1987.22 Therefore,
petitioner is liable for the addition to tax imposed by section
6654(a) for both years.
21The rate is the short-term Federal rate for the applicable
period plus 3 percentage points. Sec. 6621(a)(2) and (b).
22See infra Tables 9 and 14 in appendix.
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