- 9 -
7491(c), he must produce evidence necessary to enable the Court
to conclude that the taxpayer had an obligation to make an
estimated tax payment. Wheeler v. Commissioner, 127 T.C. 200,
211 (2006). Specifically, respondent must produce evidence
showing that the taxpayer had a “required annual payment” as
defined by section 6654(d)(1)(B) for the year in issue. Id.
The section 6654 addition to tax is calculated with
reference to four required installment payments of the taxpayer’s
estimated tax liability. Sec. 6654(c)(1). Each required
installment of estimated tax is equal to 25 percent of the
“required annual payment”. Sec. 6654(d)(1)(A).
Under section 6654(d)(1)(B), “required annual payment” means
the lesser of:
(i) 90 percent of the tax shown on the
return for the taxable year (or, if no return
is filed, 90 percent of the tax for such
year), or
(ii) 100 percent of the tax shown on the
return of the individual for the preceding
taxable year.
Clause (ii) shall not apply if the preceding taxable
year was not a taxable year of 12 months or if the
individual did not file a return for such preceding
taxable year.
Respondent produced a Form 4340 for 1996 establishing that
petitioner filed a tax return for 1996 reporting a tax liability
of $4,737. This evidence is sufficient for the Court to make the
analysis required by section 6654(d)(1)(B)(i). Respondent,
however, failed to introduce evidence showing whether petitioner
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011