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his wages and investments, with respect to his tax liability for
2000 or 2002.
The addition to tax under section 6651(a)(1) for failure to
file is based on the amount of tax due. Thus, respondent met the
burden of proving that petitioner is liable for the increased
addition to tax under section 6651(a)(1) by showing that
petitioner had an increased deficiency for 2000 as described
above.
Respondent conceded that petitioner is not liable for the
addition to tax under section 6651(a)(2) for 2002. Thus, section
6651(c)(1) (reducing the amount imposed by section 6651(a)(1) to
4.5 percent for any month in which both section 6651(a)(1) and
(2) are imposed) does not apply and the 5-percent rate does.
Respondent has established that petitioner is liable for the
addition to tax under section 6651(a)(1) for 2002 in an amount
greater than respondent determined in the notice of deficiency.
We conclude that petitioner is liable for additions to tax
for failure to file under section 6651(a)(1) of $874 for 2000 and
$1,940.25 for 2002, and failure to pay estimated tax under
section 6654 of $175 for 2000 and $288.17 for 2002.
E. Penalty for Frivolous Positions or Instituting Proceedings
Primarily for Delay Under Section 6673
Respondent moved at trial to impose a penalty under section
6673. The Court may impose a penalty of up to $25,000 if the
position or positions asserted by the taxpayer in the case are
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