-7-
6651(a)(1) in the amount to be calculated by the parties in their
Rule 155 computation.4
3. Addition to Tax Under Section 6654
Section 6654(a) imposes an addition to tax on an
underpayment of a required installment of individual estimated
tax. A taxpayer may avoid the addition to tax by establishing
that one of the exceptions listed in the section applies.
Petitioner stipulated that he did not make any estimated tax
payments for the 2001 taxable year, and he has not disputed the
imposition of the addition to tax. Accordingly, respondent has
satisfied his burden of production under section 7491(c) with
regard to the section 6654 addition to tax, and we sustain its
applicability.
4. Section 6673(a)(1)
Section 6673(a)(1) provides that this Court may require a
taxpayer to pay to the United States a penalty not in excess of
$25,000 whenever it appears either that the taxpayer instituted
or maintained the proceedings primarily for delay or that the
taxpayer’s position in the proceeding is frivolous or groundless.
On the basis of the record before us, we are convinced that
petitioner has instituted and maintained these proceedings
primarily for delay. Petitioner failed to submit to the Court a
4 We note that the addition to tax under sec. 6651(a)(1)
may not exceed 25 percent of the amount required to be shown as
tax on the return. See sec. 6651(a)(1).
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