Harald Berrey - Page 13

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          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               
          under the statute.  See sec. 6654(a); Niedringhaus v.                       
          Commissioner, 99 T.C. 202, 222 (1992).                                      
               The amount of the addition to tax under section 6654(a)                
          stated in the notice of deficiency is based on the return                   
          prepared for petitioner by respondent prior to the filing of the            
          notice of deficiency.  Nothing in the record indicates petitioner           
          made the required amount of estimated tax payment for taxable               
          year 1999, and petitioner does not argue, and the record does not           
          indicate, that any of the statutory exceptions apply.                       
          Accordingly, we conclude petitioner is liable for the addition to           
          tax.                                                                        
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   
               To reflect the parties’ concessions and our resolution of              
          the disputed matters,                                                       

                                             Decision will be entered                 
                                        under Rule 155.                               







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