- 13 -
Therefore, we sustain respondent’s imposition of a 25-percent
addition to tax under section 6651(a).11
V. Respondent’s Section 6654 Determination
Section 6654 provides for an addition to tax in the event of
an underpayment of a required installment of individual estimated
tax. Sec. 6654(a) and (b). As relevant to this case, each
required installment of estimated tax is equal to 25 percent of
the “required annual payment”, which in turn is equal to the
lesser of (1) 90 percent of the tax shown on the individual’s
return for that year (or, if no return is filed, 90 percent of
his or her tax for such year), or (2) if the individual filed a
return for the immediately preceding taxable year, 100 percent of
the tax shown on that return. Sec. 6654(d)(1)(A) and (B)(i) and
(ii). The due dates of the required installments for a calendar
taxable year are April 15, June 15, and September 15 of that year
and January 15 of the following year. Sec. 6654(c)(2).
Petitioner argues that the section 6654 addition to tax is
“not merited in this case because there is no evidence of willful
neglect and because there is evidence that petitioner is covered
under safe harbor provisions of either I.R.C. � 6654 or I.R.C. �
6654(d)(1)(B)(ii) because the record indicates that petitioner
11 Even if we were to find that the 1995 Form 1040
constituted a validly filed return (which we do not), that filing
occurred well beyond the 4-month period of nonfiling needed to
justify respondent’s imposition of a 25-percent penalty under
sec. 6651(a)(1).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011