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from amounts withheld from wages,13 neither petitioner made any
timely payments of tax that could be applied against his or her
required annual payments for the years at issue.
In the absence of valid returns, the applicability of the
$500 de minimis exception to the section 6654 addition to tax
discussed above is determined on the basis of each petitioner’s
tax (within the meaning of section 6654(f)) for the years at
issue. See sec. 6654(e)(1). In light of the deficiency
decisions that we shall enter against petitioners pursuant to our
disposition herein of the default motions, neither petitioner
qualifies for the $500 de minimis exception for any of the years
at issue. The impending entry of those deficiency decisions also
precludes the applicability of the section 6654(e)(2) exception
(zero tax for preceding year) with respect to any of the years at
issue.
Based on the foregoing, we conclude that respondent
established a prima facie case that the determination of
additions to tax under section 6654 with respect to Dr.
Trowbridge for the years 1994 and 1995, and with respect to Ms.
Martin for the years 1992-95, is appropriate, thereby satisfying
section 7491(c). Absent any evidence refuting that prima facie
13 As is the case with his sec. 6651(a)(1) computations,
respondent properly credited each petitioner with one-half of
petitioners’ aggregate wage withholding credit where applicable.
See sec. 6654(g)(1), supra note 7; sec. 1.31-1(a), Income Tax
Regs., supra note 11.
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