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5. Addition to Tax
Section 6654(a) imposes an addition to tax where prepayments
of tax, either through withholding or estimated quarterly tax
payments during the year, do not equal the percentage of total
liability required under the statute. However, the addition to
tax is not imposed if the taxpayer can show that one of several
statutory exceptions applies. Sec. 6654(e).
Petitioner is a cash-method taxpayer whose tax year is the
12-month calender year. It is undisputed that he did not have
any Federal income tax liability for the 1993 tax year.
Additionally, petitioner is a United States citizen.
Section 6654(e)(2) states that no addition to tax will be
imposed for any taxable year if: (A) the preceding taxable year
was a taxable year of 12 months; (B) the taxpayer 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.
Upon the basis of the record, we find that petitioner meets
the requirements of section 6654(e)(2) and is therefore not
liable for an addition to tax under section 6654(a) for the 1994
tax year.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011