- 11 - calculations. In determining the number of days, petitioner incorrectly failed to include the day of entry into the United States and the day of departure from the United States. On the basis of the record before us, we conclude that petitioner meets the substantial presence test for both years in issue; accordingly, petitioner is deemed a U.S. resident alien for 1993 and 1994 and is subject to U.S. tax on the compensation he received. We now turn our attention to whether petitioner is liable for the section 6654 addition to tax for the years in issue. The section 6654 addition is imposed on an individual taxpayer who fails to make timely payments of estimated tax. An underpayment of estimated tax exists if a tax payment for any of the four installment period due dates (usually quarterly) is less than the amount of taxes required to be paid each installment. See sec. 6654(b)(1). The amount of the addition is determined by applying the applicable interest rate to the amount of the underpayment for the period of time that the underpayment exists. See sec. 6654(a). Petitioner failed to make any estimated tax payments in 1993 and 1994, and he does not qualify for any exception to the section 6654 addition to tax. Consequently, he is liable for the section 6654 addition to tax for both years as determined by respondent. In reaching our holdings, we have considered all of the arguments petitioner presented for contrary holdings (includingPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011