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otherwise would, in effect, negate the application of the portion
of section 6654(d)(1)(B)(i) that defines the term “required
annual payment” “if no return is filed” as “90 percent of the tax
for * * * [the taxable] year”. As regards any taxable year for
which the taxpayer failed to file a return and received a
deficiency notice that included a proposed section 6654 addition
to tax, the taxpayer would be able to negate the addition to tax
simply by filing a return for that year that showed a tax
liability less than the quarterly estimated payments actually
made or, if none had been made, that showed a zero tax liability.
Such a result is inconsistent with both the purpose and function
of section 6654(d)(1)(B)(i).
In Evans Cooperage Co. v. United States, 712 F.2d 199 (5th
Cir. 1983), the Court of Appeals for the Fifth Circuit
characterized as a “safe harbor” the provision of the corporate
estimated tax that shields a corporation from an addition to tax
if the estimated tax paid during the year is at least equal to
the amount of tax shown on the return of the corporation for the
preceding taxable year (section 6655(d)(1), during 1976 and 1977,
the audit years in that case). Id. at 201. The Court of Appeals
described and commented on the legislative purpose of the
14(...continued)
6654(d)(1)(B)) with respect to which the filing of a valid return
gives rise to (or limits) specific rights or actions of either
the taxpayer or the Government.
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