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III. Addition to Tax Under Section 6654
Section 6654(a) imposes an addition to tax in the case of
any underpayment of estimated tax by an individual. If the
taxpayer assigns error to the Commissioner’s determination that
the taxpayer is liable for the addition to tax, the Commissioner
has the burden, under section 7491(c), of producing evidence to
show that the addition to tax applies. See Swain v.
Commissioner, supra at 364-365; Higbee v. Commissioner, supra at
446.
Under section 6654(d), the addition to tax is calculated
with reference to four required installment payments of the
taxpayer’s estimated tax liability. Sec. 6654(c). Each required
installment of estimated tax is equal to 25 percent of the
“required annual payment”. Sec. 6654(d). The “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
5(...continued)
did not file a return because, after taking into account withheld
tax, he did not owe any unpaid tax for 2000. We have held,
however, that a mistaken belief that no tax was due is not
sufficient to establish reasonable cause absent competent tax
advice or a good faith effort to ascertain the filing
requirements. See Shomaker v. Commissioner, 38 T.C. 192, 202
(1962); French v. Commissioner, T.C. Memo. 1991-196.
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