Carl L. Richey - Page 7




                                        - 6 -                                         
          1996.  Furthermore, petitioner’s wife was available to assist               
          petitioner with his finances for at least a portion of the time,            
          and petitioner also had an accountant available who helped him              
          request the extensions of time to file.  Consequently, while we             
          are sympathetic of petitioner’s situation, we find that he did              
          not have reasonable cause for failing to file timely his 1995 and           
          1996 Federal income tax returns and to pay the tax shown on the             
          1996 substitute return.  We sustain respondent’s determination              
          that petitioner is liable for the additions to tax under section            
          6651(a)(1) and (2).  The correct amounts of the additions to tax            
          must be calculated in the Rule 155 computations required in this            
          case.                                                                       
               We next address whether petitioner is liable for the section           
          6654(a) addition to tax for failure to make estimated Federal               
          income tax payments for 1995 and 1996.  Unless the taxpayer                 
          demonstrates that one of the statutory exceptions applies,                  
          imposition of the section 6654(a) addition to tax is mandatory              
          where prepayments of tax, either through withholding or by making           
          estimated quarterly tax payments during the course of the taxable           
          year, do not equal the percentage of total liability required               
          under the statute.  See sec. 6654(a); Niedringhaus v.                       
          Commissioner, 99 T.C. 202, 222 (1992).                                      
               Petitioner did not address this issue separately from the              
          section 6651(a) issue.  However, there is no “reasonable cause”             






Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011