William M. Smith - Page 6




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          (or, if no return is filed, 90 percent of his or her tax for such           
          year), or (2) if the individual filed a return for the                      
          immediately preceding taxable year, 100 percent of the tax shown            
          on that return.  Sec. 6654(d)(1)(B); Wheeler v. Commissioner,               
          supra at 210-211; Heers v. Commissioner, T.C. Memo. 2007-10.  A             
          taxpayer has an obligation to pay estimated tax for a particular            
          year only if he has a “required annual payment” for that year.              
          Wheeler v. Commissioner, supra at 211.                                      
               Respondent introduced evidence to prove petitioner was                 
          required to file a Federal income tax return for 2002, petitioner           
          did not file a 2002 return, and petitioner failed to make                   
          estimated tax payments (with the exception of the withheld tax).            
          However, in order to permit this Court to make the analysis                 
          required by section 6654(d)(1)(B)(ii) and to conclude that                  
          respondent met his burden of producing evidence that petitioner             
          had a required annual payment for 2002 payable in installments              
          under section 6654, respondent also must introduce evidence                 
          showing whether petitioner filed a return for the preceding                 
          taxable year and, if so, the amount of tax shown on that return.            
          Respondent did not do so.  Without that evidence, this Court                
          cannot identify the number equal to 100 percent of the tax shown            
          on petitioner’s 2001 return, complete the comparison required by            
          section 6654(d)(1)(B), and conclude petitioner had a required               
          annual payment for 2002 that was payable in installments under              







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Last modified: November 10, 2007