Charles Raymond Wheeler - Page 19

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               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.            





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Last modified: May 25, 2011