- 14 -
T.C. Memo. 1966-81; Rowlee v. Commissioner, 80 T.C. 1111, 1123
(1983).
1. Section 6653 Underpayment of Tax for 1987 and 1988
To impose liability under section 6653(b)(1)(A) and (B) for
1987 and section 6653(b)(1) for 1988, respondent must first prove
that there has been an underpayment of taxes for the years in
issue. Lee v. United States, 466 F.2d 11, 16-17 (5th Cir. 1972);
Plunkett v. Commissioner, 465 F.2d 299, 303 (7th Cir. 1972),
affg. T.C. Memo. 1970-274. Section 6653(c)(1) defines
"underpayment" as a deficiency as defined in section 6211, except
that in making the deficiency calculation under section 6211,
section 6653(c)(1) states that "the tax shown on a return
referred to in section 6211(a)(1)(A) shall be taken into account
only if such return was filed on or before the last day
prescribed for the filing of such return".
Petitioner failed to file Federal income tax returns for
1987 and 1988. The deemed admissions establish that petitioner's
tax liabilities for 1987 and 1988 are $23,320 and $18,554,
respectively. Since for purposes of sec. 6653(c)(1) "a taxpayer
will automatically create an 'underpayment' in the amount of the
correct tax simply because he or she files an untimely return",
we conclude that petitioner underpaid his taxes in 1987 and 1988.
See Emmons v. Commissioner, 92 T.C. 342, 349 (1989), affd. 898
F.2d 50 (5th Cir. 1990).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011