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6665 in a way that makes sense.
We shall disregard the 1988 return for purposes of
determining whether petitioner satisfies the return-filed safe
harbor of section 6654(d)(1)(B)(i).
Because petitioner made no estimated tax payments for the
audit year, he necessarily failed the alternative safe harbor of
section 6654(d)(1)(B)(i) to make estimated tax payments equal to
“90 percent of the tax” (i.e., his ultimate tax
liability) for the audit year.18
3. Satisfaction of Section 6654(d)(1)(B)(ii)
As noted supra in Section II, the trial record does not
establish that petitioner ever filed a return for 1987. Because
there is no return “for the preceding taxable year”, petitioner
may not rely on the safe harbor provided by section
6654(d)(1)(B)(ii).19
18 We also disregard the 1988 return for purposes of sec.
6654(e)(1), and, because petitioner’s 1988 ultimate tax liability
exceeds $500, the exception provided by that paragraph if no
return is filed is inapplicable.
19 Also, because petitioner’s 1987 tax was more than zero
(the 1987 Form 1040 showed a tax due of $206 and a notice of
deficiency issued for 1987 showed a tax deficiency of $2,331),
the exception provided by sec. 6654(e)(2) is inapplicable.
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