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the tax shown on the individual’s return for the preceding
taxable year (if the individual filed a return for that preceding
year). Sec. 6654(d)(1)(B).
Respondent has not met the burden of production for the
addition to tax for failure to make estimated tax payments for
2002. Respondent’s Form 4340, Certificate of Assessments,
Payments, and Other Specified Matters, indicates that a return
was filed for 2001. Respondent, however, did not introduce any
evidence regarding the amount of tax shown on the 2001 return.
Consequently, we cannot determine whether petitioner had a
required annual payment for 2002.
Respondent has met the burden of production for the addition
to tax for failure to make estimated tax payments for 2003.
Since petitioner did not file a return for 2002, petitioner’s
required annual payment for 2003 was 90 percent of the tax for
2003, which was greater than zero. Petitioner had no withholding
for 2003, and respondent’s records show that he made no other
payments for 2003. Therefore, respondent has met the burden of
production for the section 6654 addition to tax for 2003.
Petitioner argues that he had reasonable cause for failing
to make estimated tax payments because he was not self-employed
and therefore was not obligated to make estimated tax payments.
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Last modified: November 10, 2007