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section 6654(d)(1)(B) to make an annual payment during 2001 of 90
percent of the tax for 2001.7 Respondent also introduced into
evidence Form 4340, which shows that petitioner did not make the
required estimated tax payments. On the basis of this evidence,
we find that respondent has met his burden of production.
We do not find that a statutory exception to the addition to
tax under section 6654(e) applies. Therefore, we conclude that
petitioner is liable for an addition to tax under section
6654(a).
V. Penalty Under Section 6673(a)(1)
Section 6673(a)(1) authorizes the Court to require a
taxpayer to pay the United States a penalty in an amount not to
exceed $25,000 whenever the taxpayer’s position is frivolous or
groundless or the taxpayer has instituted or pursued the
proceeding primarily for delay. At trial and on brief,
respondent asked the Court to impose a penalty under section
6673(a)(1) against petitioner due to petitioner’s failure to
cooperate, his failure to appear at trial, and his continual
delay.
Petitioner’s actions evidence an intention to delay the
proceedings, and he has failed to cooperate with respondent at
7 As discussed supra, respondent also established that
petitioner has tax due for 2001 as the result of the medical and
healthcare payments received. The amount of tax due, and
consequently, the amount of the additions to tax, must be
determined by the parties under Rule 155.
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Last modified: November 10, 2007