- 15 -
2. Section 6654(a)
Respondent also determined that petitioner is liable for an
addition to tax for failure to pay estimated tax pursuant to
section 6654(a).
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 multiplying 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
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 SFR respondent
prepared for petitioner prior to the filing of the notice of
deficiency. Nothing in the record indicates petitioner made the
required amount of estimated tax payments for taxable year 2001,
and petitioner does not argue, and the record does not indicate,
that any of the statutory exceptions apply. Accordingly, the
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