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determination that petitioners are liable for additions to tax
under section 6651(a)(1) for each of their years in issue.
B. Section 6654 Additions
Respondent determined that Mrs. Callahan is liable for
additions to tax pursuant to section 6654 for failure to pay
estimated tax for 1997, 1998, 1999, and 2002 and determined that
Mr. Callahan is liable for additions pursuant to section 6654 for
1997, 1998, and 1999.
An individual taxpayer generally has an obligation to pay
estimated tax for a particular year only if he or she has a
“required annual payment” for that year. Sec. 6654(d). A
“required annual payment” is equal to the lesser of (1) 90
percent of the tax shown on the individual’s return for that year
(or, if no return is filed, 90 percent of his or her tax for such
year), or (2) if the individual filed a return for the
immediately preceding year, 100 percent of the tax shown on that
return. Sec. 6654(d)(1). Respondent’s burden of production
under section 7491(c) for the section 6654 addition to tax
requires him to produce evidence that petitioners had required
annual payments for the years in issue. See Wheeler v.
Commissioner, 127 T.C. 200, 210-212 (2006).
As our deficiency determinations establish, petitioners had
tax due for each of their years in issue. Since petitioners
admitted they had not filed returns since 1993, they did not file
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Last modified: November 10, 2007