- 13 - 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 requiredPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011