Larry T. Cooper - Page 16

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               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               







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