- 19 - Under section 6654(d)(1)(B), the required annual payment, which dictates the amount, if any, of a taxpayer’s required estimated tax installments, see sec. 6654(d)(1), is the lesser of 90 percent of the tax shown for the subject taxable year (or, if no return was filed, 90 percent of the tax for such year), sec. 6654(d)(1)(B)(i), or a fixed percentage (usually 100 percent but can be higher, see sec. 6654(d)(1)(C)(i)) of the tax shown on the taxpayer’s return for the preceding taxable year, sec. 6654(d)(1)(B)(ii). In order to satisfy his burden of production under section 7491(c) regarding petitioner’s liability for the section 6654 addition to tax, respondent, at a minimum, must produce evidence necessary to enable the Court to conclude that petitioner had a required annual payment under section 6654(d)(1)(B). Respondent produced evidence establishing that petitioner did not file a return for 2003 and that, after concessions, petitioner had a revised income tax liability of $3,854 for 2003, the year at issue. This evidence was sufficient to permit this Court to make the analysis required by section 6654(d)(1)(B)(i). However, in order to permit this Court to make the analysis required by section 6654(d)(1)(B)(ii)15 and to conclude that respondent had met his burden of producing evidence that 15Sec. 6654(d)(1)(B)(ii) does not apply if the preceding taxable year was not a taxable year of 12 months or if the individual did not file a return for the preceding taxable year.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
Last modified: May 25, 2011