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paying estimated tax. See Rule 142(a); Higbee v. Commissioner,
116 T.C. 438, 446 (2001). The addition to tax for failure to pay
estimated tax is mandatory, unless petitioner can show that he
qualifies for one of the exceptions. Grosshandler v.
Commissioner, 75 T.C. 1, 20-21 (1980) (citing Estate of Ruben v.
Commissioner, 33 T.C. 1071, 1072 (1960)).
Petitioner did not pay estimated tax for the taxable year
2001. Moreover, petitioner failed to show that his failure to
timely pay estimated tax qualifies for one of the exceptions
under section 6654(e). See Rule 142(a). Accordingly, petitioner
is liable for the addition to tax under section 6654(a) for 2001.
C. Installment Agreement
Petitioner contends that respondent abused his discretion by
mismanaging his “collection due process”. Respondent, on the
other hand, contends that there was no abuse of discretion
because petitioner failed to provide the necessary information
for an installment agreement, such as a monthly payment amount
and pertinent financial information.
We review this matter for abuse of discretion. See Orum v.
Commissioner, 123 T.C. 1, 12-13 (2004), affd. 412 F.3d 819 (7th
Cir. 2005). An abuse of discretion occurs when respondent takes
action that is arbitrary or capricious, lacks sound basis in law,
or is not justifiable in light of the facts and circumstances.
Mailman v. Commissioner, 91 T.C. 1079, 1084 (1988).
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