Norman W. Klootwyk - Page 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              
          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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