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1999. Petitioner introduced no evidence establishing reasonable
cause. Respondent’s determination on this issue is sustained.
C. Addition to Tax Under Section 6654(a)
Section 6654(a) provides for an addition to tax “in the case
of any underpayment of estimated tax by an individual”. This
addition to tax is mandatory unless one of the statutorily
provided exceptions applies. See sec. 6654(e); Grosshandler v.
Commissioner, 75 T.C. 1, 20-21 (1980). There is no exception for
reasonable cause or lack of willful neglect. Estate of Ruben v.
Commissioner, 33 T.C. 1071, 1072 (1960).
Respondent bears the burden of production with respect to
the addition to tax under section 6654(a). Davis v.
Commissioner, T.C. Memo. 2005-160. To meet this burden,
respondent must show that petitioner had a “required annual
payment”. Wheeler v. Commissioner, 127 T.C. 200, 210-212 (2006).
The required annual payment equals the lesser of (1) 90 percent
of the tax shown on the return for the taxable year (or 90
percent of the tax for such year if no return is filed), or (2)
100 percent of 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).
Because petitioner had a tax liability for each of the years
at issue, he had an obligation to make estimated tax payments for
1998 and 1999. See Wheeler v. Commissioner, supra at 211. The
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