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proving that his failure to pay was due to a reasonable cause.
Sec. 7491(c); Higbee v. Commissioner, supra.
The parties stipulated that respondent prepared returns
pursuant to section 6020(b), and petitioner has not paid any of
the liability shown on those returns above the $112,000 he
already paid toward his 2000 tax liability. Petitioner’s
statement that he will pay his tax liabilities when respondent
takes action against the Organization does not establish that he
failed to pay his tax liabilities due to a reasonable cause, and
therefore we hold that petitioner is liable for the addition to
tax under section 6651(a)(2) for each of the years 1999 through
2003 as computed by respondent.
Section 6654
Respondent also determined that petitioner is liable for
additions to tax under section 6654 for failure to pay estimated
income taxes for 1999 through 2003. A taxpayer has an obligation
to pay estimated tax for a particular year only if he has a
“required annual payment” for that year. Sec. 6654(d). A
“required annual payment” is equal to the lesser of (1) 90
percent of the tax shown due for the year in issue (or, if no
return is filed, 90 percent of his tax for such year), or (2) if
the taxpayer filed a return for the immediately preceding taxable
year, 100 percent of the tax shown on that return. Sec.
6654(d)(1)(B). If the adjusted gross income shown on the
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Last modified: March 27, 2008