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underpayment penalty under �6654(e)(2), apply for 1990
and 1992.
Section 6654(e) provides in pertinent part:
(e) Exceptions.--
(1) Where tax is small amount.--No addition to tax
shall be imposed under subsection (a) for any taxable
year if the tax shown on the return for such taxable
year (or, if no return is filed, the tax), reduced by
the credit allowable under section 31, is less than
$500.
(2) Where no tax liability for preceding taxable
year.-–No addition to tax shall be imposed under sub-
section (a) for any taxable year if–-
(A) the preceding taxable year was a taxable
year of 12 months,
(B) the individual did not have any liability
for tax for the preceding taxable year, and
(C) the individual was a citizen or resident
of the United States throughout the preceding
taxable year.
The parties made various concessions at trial as well as in
the stipulation of facts and the supplemental stipulation of
facts filed in this case. Consequently, computations under Rule
155 will be necessary. On the present record, we find that
petitioner is liable for the additions to tax under section
6654(a) for 1990, 1991, and 1992 except to the extent that the
Rule 155 computations in this case establish that the exception
provided in either section 6654(e)(1) or section 6654(e)(2)
applies for any such year.
To reflect the foregoing and the concessions of the parties,
Decision will be
entered under Rule 155.
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