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Although petitioner has provided a reason for failing to file his
2002 return, he has not provided a reason for which his failure
to file can be excused. Respondent has carried his burden of
producing evidence to show the applicable addition to tax is
appropriate. Petitioner has failed to show that he exercised
ordinary business care and prudence in this case. We conclude
petitioner is liable for the addition to tax pursuant to section
6651(a)(1) with respect to taxable year 2002. Because of
respondent’s concession, the addition to tax pursuant to section
6651(a)(1) applicable to taxable year 2002 requires computation.
b. Section 6654(a)
Respondent also determined that petitioner is liable for an
addition to tax for the underpayment of estimated tax pursuant to
section 6654(a) for taxable year 2002.
Section 6654(a) provides that in the case of an underpayment
of estimated tax by an individual, there shall be added to the
tax an amount determined by applying the underpayment rate
established under section 6621 to the amount of the underpayment
for the period of the underpayment. Unless the taxpayer
demonstrates that one of the statutory exceptions applies,
imposition of the section 6654(a) addition to tax is mandatory
where prepayments of tax, either through withholding or by making
estimated quarterly tax payments during the course of the taxable
year, do not equal the percentage of total liability required
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Last modified: May 25, 2011