William C. Williams - Page 5




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          reasonable explanation for his failure to file.  Therefore, we              
          sustain respondent's determination with respect to the addition             
          to tax for delinquent filing.                                               
               Section 6654(a) imposes an addition to tax for underpayment            
          of estimated tax by an individual.  The amount of this addition             
          to tax is equal to the amount of the underpayment multiplied by             
          the underpayment rate established under section 6621 for the                
          period of the underpayment.  The addition to tax under section              
          6654(a) is mandatory unless petitioner can prove that he complies           
          with one of the exceptions contained in section 6654(e).  See               
          Baldwin v. Commissioner, 84 T.C. 859, 871 (1985); Grosshandler v.           
          Commissioner, 75 T.C. 1, 20-21 (1980).  Since petitioner has                
          failed to introduce evidence on this issue, and the record does             
          not indicate that any of the exceptions in section 6654(e)                  
          applies, we sustain respondent's determination concerning the               
          addition to tax under section 6654.                                         
               Section 6673(a)(1) allows this Court to award a penalty not            
          in excess of $25,000 when proceedings have been instituted or               
          maintained primarily for delay, or where the taxpayer's position            
          is frivolous or groundless; i.e., it is contrary to established             
          law and unsupported by a reasoned, colorable argument for a                 
          change in the law.  See Coleman v. Commissioner, 791 F.2d 68, 71            
          (7th Cir. 1986).  In our opinion, such is the case here, and we             
          believe that a penalty is appropriate.  The positions argued by             






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