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indicates that petitioner’s 1994 tax was greater than zero.
Since the possibility remains that the section 6654(e)(2)
exception applies to 1995, respondent has failed to satisfy
section 7491(c) with respect to the section 6654 addition to tax
for that year. Petitioner therefore is not liable for such
addition to tax.
The 1996 and 1997 remittances were made on April 15 of 1997
and 1998, respectively. Since the interest charge on quarterly
underpayments of estimated tax ceases to accrue on April 15 of
the following year, see sec. 6654(b)(2), petitioner’s remittances
with respect to 1996 and 1997 could not reduce the amounts of any
quarterly underpayments of estimated tax with respect to those
years. In the absence of any returns for 1996 and 1997 and any
offsetting remittances, the amounts of those underpayments are
determined solely by reference to petitioner’s actual tax for
each such year (more precisely, 90 percent thereof), as governed
by the stipulation of settled issues. In light of the foregoing,
respondent has satisfied section 7491(c) with respect to the
section 6654 additions to tax for 1996 and 1997.
III. Conclusion
We conclude that (1) respondent is not estopped from
asserting deficiencies and additions to tax with respect to 1995,
1996, and 1997; (2) amounts petitioner remitted with his filing
extension requests for 1996 and 1997 do not reduce the
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