- 11 -
during the course of the year, do not equal the percentage of
total liability required under the statute. The amount required
to be paid through each such estimated quarterly payment is 25
percent of the required annual payment. Sec. 6654(d)(1)(A). The
required annual payment is, in turn, the lesser of 90 percent of
the tax shown on the return for that taxable year or 100 percent
of the tax shown on the return for the preceding taxable year (or
a greater percent for individuals with adjusted gross income
exceeding $150,000). Sec. 6654(d)(1)(B) and (C). There is no
broadly applicable reasonable cause exception to the section 6654
addition to tax.
The record shows that petitioner did not make sufficient
estimated tax payments for 1997, 1998, or 1999, the years for
which respondent seeks to impose the section 6654 addition. None
of the statutory exceptions to imposition of the addition
applies. We conclude that respondent has met his burden of
production under section 7491(c) regarding petitioner’s liability
for the additions to tax under section 6654 and that petitioner
is liable for those additions.10
10The parties stipulated that “petitioner filed an income
tax return for 1996, reporting tax liability in the amount of
$29,980.” In addition, for 1996, petitioner reported self-
employment tax of $15,430.
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: November 10, 2007