- 5 -
the additions to tax. Sec. 7491(c); Higbee v. Commissioner, 116
T.C. 438, 446-447 (2001). To meet his burden of production with
respect to section 6651, respondent must come forward with
sufficient evidence indicating it is appropriate to impose the
addition to tax. Higbee v. Commissioner, supra at 446-447.
Section 6651(a)(1) imposes an addition to tax for failure to
file a return on the date prescribed (determined with regard to
any extension of time for filing) unless petitioner can establish
that his failure was due to reasonable cause and not due to
willful neglect. Petitioner admitted he did not file a Federal
income tax return for 2002. Respondent has met his burden of
production. This Court finds that the failure to file a Federal
income tax return for 2002 was not due to reasonable cause but
was due to willful neglect. Therefore, this Court holds that
petitioner is liable for the section 6651(a)(1) addition to tax
for 2002.
Under section 6654, the addition to tax is calculated with
reference to four required installment payments of the taxpayer’s
estimated tax liability. Sec. 6654(c)(1); Wheeler v.
Commissioner, 127 T.C. 200, 210 (2006). Each required
installment of estimated tax is equal to 25 percent of the
“required annual payment”. Sec. 6654(d)(1)(A). The “required
annual payment” is generally equal to the lesser of (1) 90
percent of the tax shown on the individual’s return for that year
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: November 10, 2007