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2. Section 6654
Section 6654(a) imposes an addition to tax for failure to
pay estimated income tax where there has been an underpayment of
estimated tax by the taxpayer. Pursuant to the deemed
admissions, supra, “petitioner did not make the required payments
of estimated taxes for 2000 or 2001, through withheld taxes or
otherwise". This admission satisfies any burden of production on
the part of respondent. Furthermore, petitioner conceded, supra,
that “Should the Court deny petitioner’s motion to withdraw the
deemed admissions, petitioner confesses that the deemed
admissions alone are enough to cause the Court to award
respondent summary judgment.”
The Court concludes that respondent has satisfied his burden
of proving that no genuine issue of material fact exists as to
respondent’s addition to tax determinations, and respondent is
entitled to judgment as a matter of law. Therefore, the Court
sustains the imposition of additions to tax pursuant to section
6654. Respondent’s motion for summary judgment shall be granted.
III. Section 6673 Penalty
Section 6673(a)(1) authorizes the Tax Court to impose a
penalty not in excess of $25,000 on a taxpayer for proceedings
instituted primarily for delay or in which the taxpayer’s
position is frivolous or groundless. “A petition to the Tax
Court, or a tax return, is frivolous if it is contrary to
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Last modified: May 25, 2011