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by applying the underpayment rate established under section 6621
to the amount of the underpayment for the period of the
underpayment. 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).
There is no “reasonable cause” exception for the section
6654(a) addition to tax similar to that for the section 6651(a)
additions to tax. Nothing in the record indicates petitioner
made the required amount of estimated tax payments for taxable
years 1995 and 1996, and petitioner does not argue, and the
record does not indicate, that any of the statutory exceptions
apply.
The amount of the addition to tax under section 6654(a)
stated in the deficiency notice is based on the returns prepared
for petitioner by respondent prior to the filing of the notices
of deficiency. Respondent now urges that the correct penalty
under section 6654(a) should be computed on the basis of the
higher amount of income and income tax stated on the Federal
income tax returns that petitioner filed for 1996, 1997, and 1998
after the mailing of the notices of deficiency and stipulated by
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