Joyce M. Thomas - Page 9

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              3. Petitioner Is Liable for Section 6654(a) Additions to                
              Section 6654(a) imposes an addition to tax on an                        
         underpayment of estimated tax unless one of the statutory                    
         exceptions applies.  Niedringhaus v. Commissioner, 99 T.C. 202,              
         222 (1992); Grosshandler v. Commissioner, 75 T.C. 1, 20-21                   
         (1980); see sec. 6654(e).  Respondent’s Forms 4340 indicate that             
         petitioner did not make estimated tax payments in 1999 or 2000,              
         which petitioner confirmed in her testimony at trial.  We find               
         that respondent has met his burden of production.                            
              Under section 6654(e)(3)(B), the addition to tax will not be            
         imposed where the taxpayer becomes disabled in the taxable year              
         for which the estimated payments were required to be made or in              
         the preceding taxable year, and the underpayment is due to                   
         reasonable cause and not due to willful neglect.                             
              Petitioner was suffering from bilateral tendinitis, carpal              
         tunnel syndrome, and depression at the time the estimated                    
         payments were required to be made.  However, during this period,             
         petitioner was employed by Cypress and was running her own                   
         startup network marketing business.  We find that petitioner was             
         not disabled for purposes of section 6654.  Therefore, the                   
         exception found in section 6654(e)(3)(B) does not apply.                     
              We do not find that any other statutory exception applies.              
         Therefore, we hold that petitioner is liable for additions to tax            
         under section 6654(a) for 1999 and 2000.                                     

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