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Section 6651(a)(2) provides for an addition to tax in
instances where there is a failure to pay the amount of tax shown
on a return, and it applies only when an amount of tax is shown
on a return. Cabirac v. Commissioner, 120 T.C. 163, 170 (2003).
Petitioner did not file a return or pay taxes for any of the
years 1999 through 2002, and respondent prepared substitute
returns pursuant to section 6020(b). Under section 6651(g)(2), a
return prepared by the Secretary under section 6020(b) is treated
as the return filed by the taxpayer for purposes of determining
an addition to tax under section 6651(a)(2). Cabirac v.
Commissioner, supra at 170. We hold that petitioner is liable
for the additions to tax under section 6651(a)(2) for taxable
years 1999 through 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,6 unless one of the several
exceptions under section 6654(e) applies. Niedringhaus
6Sec. 6654(d) requires quarterly installment payments of 25
percent of the required annual payment. Sec. 6654(d)(1)(A). The
required annual payment is the lesser of 90 percent of the tax
due for the year in issue or 100 percent of the tax shown on the
return in the preceding year. Sec. 6654(d)(1)(B).
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