- 11 - 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 toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011