- 6 -
partially due to the section 6654(a) addition to tax, their
regular tax would not include that amount. Respondent has
established that he summarily assessed and imposed a section
6654(a) addition to tax of $878.08 on the basis of petitioners’
2004 filed return. Contrarily, petitioners have failed to show
that $878.08 of their refund reduction was due to anything other
than the addition to tax imposed by respondent.9
Accordingly, we find that respondent correctly omitted the
imposed section 6654(a) addition to tax when calculating
petitioners’ AMT liability. Therefore, we shall sustain
respondent’s determination. Contentions we have not addressed
are irrelevant, moot, or meritless.
To reflect the foregoing,
Decision will be entered
under Rule 155.
9 While we lack jurisdiction to review respondent’s
assessment of the sec. 6654(a) addition to tax, we note that
petitioners’ argument that their overpayment of total estimated
taxes could not generate an underpayment addition to tax is
flawed. Very simply, taxpayers required to make estimated tax
payments must pay four equal installments of their required
annual tax payments, based on their total required payment. See
sec. 6654(c). Although the total of petitioners’ installment
payments may have equaled more than their total required amount,
it is possible that one or more installments failed to meet the
required amount owed for that quarter, thus, leading to the
estimated tax addition to tax.
Page: Previous 1 2 3 4 5 6 7
Last modified: November 10, 2007