John Parks Trowbridge - Page 23

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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           
               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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