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is calculated with respect to four required installment payments
of the taxpayer’s estimated tax liability. Sec. 6654(b) and (c).
Each installment is equal to 25 percent of the “required annual
payment”. Sec. 6654(d)(1)(A). The “required annual payment” is
generally 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 taxable
year, 100 percent of the tax shown on that return. Sec.
6654(d)(1)(B); Wheeler v. Commissioner, 127 T.C. 200, 210-211
(2006); Heers v. Commissioner, T.C. Memo. 2007-10.
Respondent introduced evidence to show petitioner was
required to file a Federal income tax return for 2002, failed to
report income for 2002, and failed to make estimated tax payments
for 2002 (with the exception of the withheld tax). In order to
permit the Court to make the analysis required by section
6654(d)(1)(B)(ii), respondent must introduce evidence showing
whether petitioner filed a return for the preceding taxable year
and, if so, the amount of tax shown on that return. See Wheeler
v. Commissioner, supra at 212. Respondent did not do so.
Without that evidence, this Court cannot identify the number
equal to 100 percent of the tax shown on petitioner’s 2001
return, complete the comparison required by section
6654(d)(1)(B), and conclude petitioner had a required annual
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Last modified: March 27, 2008