8
generally, it is mandatory, and extenuating circumstances are
irrelevant. Estate of Ruben v. Commissioner, 33 T.C. 1071, 1072
(1960); see also Grosshandler v. Commissioner, 75 T.C. 1, 20-21
(1980) (imposition of section 6654 addition to tax is mandatory
where estimated payments do not equal statutorily required
percentage).
However, as with section 6651(a)(1), the Commissioner bears
the burden of production regarding the section 6654 addition to
tax. For the reasons stated herewith, we hold that respondent
has met this burden.
Petitioner conceded that he did not pay any estimated tax on
the wages he received from Compliance in 2001. Petitioner did
not offer any explanation for his failure to pay beyond his
reasoning that he had to wait for respondent’s determination
letter and thereafter, had to wait for Compliance to file a Form
W-2 with respondent and send one to him. Both lines of
petitioner’s reasoning are wrong. During 2001, petitioner was
treated by Compliance as an independent contractor. No Federal
income tax was withheld from his wages. Accordingly, petitioner
was under an obligation to remit estimated payments pursuant to
section 6654(c) and (d). The fact that respondent ultimately
determined petitioner was a Compliance employee does not negate
petitioner’s failure to make these payments when they were due in
2001.
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