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hold that petitioner is liable for the additions to tax under
section 6651(a)(1) for taxable years 1997 and 2002.
Section 6654(a) imposes an addition to tax for failure to
pay estimated income tax. Section 6654 applies where prepayments
of tax, either through withholdings or by making estimated
quarterly payments, do not equal the percentage of total
liability required under the statute,3 unless one of the several
statutory exceptions under section 6654(e) applies. Niedringhaus
v. Commissioner, 99 T.C. 202, 222 (1992). In his petition,
petitioner only raised typical tax protester arguments that he
did not owe tax and did not specifically assign error to the
section 6654 penalty. Accordingly, petitioner is deemed to have
conceded the section 6654 penalty. Rule 34(b); Funk v.
Commissioner, 123 T.C. 213, 218 (2004); Swain v. Commissioner,
118 T.C. 358, 365 (2002); We therefore hold that petitioner is
liable for the addition to tax under section 6654 for taxable
year 1997.
3Sec. 6654(d) requires quarterly installment payments of 25
percent of the required annual payment. Sec. 6654(d)(1)(A). In
cases where no return was filed for the year in issue and the
preceding taxable year, the required annual payment is 90 percent
of the tax due for the year in issue. Sec. 6654(d)(1)(B)(i),
(flush language).
The record in the instant case demonstrates that petitioner
failed to make quarterly payments of 90 percent of the tax due
for taxable year 1997 and did not file a tax return for taxable
year 1996. Accordingly, sec. 6654 applies.
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