Charles Raymond Wheeler - Page 17

                                       - 17 -                                         
          “Substitute for Return” contained in Form 4340, Certificate of              
          Assessments, Payments, and Other Specified Matters, for                     
          petitioner’s 2003 taxable year.                                             
               The Commissioner’s burden of production with respect to the            
          section 6651(a)(2) addition to tax requires that the Commissioner           
          introduce evidence that a return showing the taxpayer’s tax                 
          liability was filed for the year in question.  In a case such as            
          this where the taxpayer did not file a return, the Commissioner             
          must introduce evidence that an SFR satisfying the requirements             
          of section 6020(b) was made.  See Cabirac v. Commissioner, supra.           
          Respondent did not do so.                                                   
               Because the record does not contain evidence that petitioner           
          failed to pay tax shown on a return for 2003, we conclude that              
          respondent has failed to satisfy his burden of production under             
          section 7491(c) with respect to the section 6651(a)(2) addition             
          to tax.                                                                     
                    D.  Section 6654(a) Addition to Tax                               
               Section 6654 imposes an addition to tax on an individual               
          taxpayer who underpays his estimated tax.  The addition to tax is           
          calculated with reference to four required installment payments             
          of the taxpayer’s estimated tax liability.  Sec. 6654(c)(1).                
          Each required installment of estimated tax is equal to 25 percent           
          of the required annual payment.  Sec. 6654(d)(1)(A).  The                   
          required annual payment is equal to the lesser of (1) 90 percent            






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Last modified: May 25, 2011