- 13 -
addition to tax under section 6651(a)(1) must be recalculated
because of section 6651(c)(1).6
The final issue is respondent’s determination that
petitioner is liable for the addition to tax for failure to pay
estimated taxes under section 6655.
Section 6655 requires corporations to pay estimated income
taxes as a parallel to section 6654, which requires individuals
to pay estimated taxes. Petitioner failed to pay any estimated
taxes for the 2 years at issue. Since the Court holds that taxes
were due for these years, it follows that this addition to tax is
applicable and is, therefore, sustained.7
Decision will be entered
under Rule 155.
6In conceding the sec. 6651(a)(2) addition to tax, the Court
construes that concession as an assertion of a claim by
respondent for an increase in the sec. 6651(a)(1) addition to tax
based upon the concession of the sec. 6651(a)(2) addition to tax.
7The Court recognizes that, with respect to the fiscal year
ending Sept. 30, 1998, the required estimated taxes for that year
would, under sec. 6655(d)(1)(B)(ii), be 100 percent of the tax
shown on the return of the corporation for the preceding taxable
year, which, in this case, would be the year ending September 30,
1997. Although no direct evidence was offered with respect to
the fiscal year ending Sept. 30, 1997, the record supports a
finding that no income tax return was filed by Omnitec Missouri
(petitioner) for that year. The record supports the conclusion
that the burden of production on respondent for the sec. 6655
additions to tax for the fiscal years ending Sept. 30, 1998 and
1999 has been satisfied.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13
Last modified: May 25, 2011