John L. Seymour - Page 19

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          agreement pursuant to section 1.163-8T, Temporary Income Tax                
          Regs., 52 Fed. Reg. 24999 (July 2, 1987).  We believe that the              
          proper allocation of petitioner's interest expense can be                   
          mutually resolved and expect the parties to enter a stipulated              
          computation to that effect.                                                 
               Respondent also determined that petitioner is liable for               
          additions to tax under section 6654(a) for failure to pay                   
          estimated income tax.  Section 6654(a) provides for an addition             
          to tax "in the case of any underpayment of estimated tax by an              
          individual".  Subject to certain exceptions provided by                     
          statute, this addition to tax is otherwise automatic if the                 
          amounts of the withholdings and estimated tax payments do not               
          equal statutorily designated amounts.  Niedringhaus v.                      
          Commissioner, 99 T.C. 202, 222 (1992); Grosshandler v.                      
          Commissioner, 75 T.C. 1, 20-21 (1980).                                      
               Petitioner failed to produce any evidence that would tend              
          to show that any of the statutory exceptions should apply or                
          that respondent's determination of petitioner's liability for               
          the addition to tax under section 6654(a) is in error.                      
          Consequently, because petitioner failed to make any estimated               
          tax payments during the years in issue, we hold that he is                  
          liable for the additions to tax under section 6654(a) for 1992              
          and 1993.                                                                   

                                             An appropriate order will be             
                                        issued.                                       



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