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1.6654-1(a), Income Tax Regs. However, no addition to tax is
imposed under section 6654(a) if one of the exceptions set forth
in section 6654(e) is satisfied.
Under section 6654(e)(2), no addition to tax is imposed
under section 6654(a) if: (1) The taxpayer's preceding taxable
year was a taxable year of 12 months; (2) the taxpayer did not
have any tax liability for the preceding taxable year; and (3)
the taxpayer was a citizen or resident of the United States
throughout the preceding taxable year. Petitioner's 1992 taxable
year was a taxable year of 12 months. Petitioner's joint Federal
income tax return for the taxable year 1992, as stipulated to by
the parties, reflects zero tax liability. In addition,
petitioner was a resident of the United States throughout 1992.
Consequently, the exception under section 6654(e)(2) applies with
respect to the 1993 taxable year. We hold that petitioner is not
liable for the addition to tax under section 6654(a).
We have considered all of petitioner's arguments and, to the
extent not discussed above, find them to be without merit.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011