- 10 -
for her 2003 taxable year. Because petitioner had a tax
liability for the preceding taxable year, see supra note 5,
respondent has met his burden of producing evidence that
petitioner had a required annual payment of estimated tax for
2004.9
The Court also concludes that petitioner does not fit
within any of the exceptions listed in section 6654(e).10 As a
consequence, the Court sustains respondent’s determination of the
addition to tax pursuant to section 6654(a).
IV. Section 6673 Penalty
Section 6673 allows this Court to award a penalty to the
United States in an amount not in excess of $25,000 for
8(...continued)
calculated the addition to tax under sec. 6654(a) after
accounting for the $3,573.81 in Federal income tax withholding.
9 Because the tax shown on petitioner’s 2003 Federal income
tax return was more than $3,573.81, she has not made the required
annual payment of estimated tax. See sec. 6654(d)(1)(B)(ii),
(g)(1).
10 Sec. 6654(e) provides two exceptions to the sec. 6654(a)
addition to tax. First, the addition is not applicable if the
tax shown on the taxpayer’s return for the year in question (or,
if no return is filed, the taxpayer’s tax for that year), reduced
for these purposes by any allowable credit for wage withholding,
is less than $1,000. Sec. 6654(e)(1). Second, the addition is
not applicable if the taxpayer’s tax for the full 12-month
preceding taxable year was zero and the taxpayer was a citizen or
resident of the United States. Sec. 6654(e)(2). In light of our
earlier conclusion regarding petitioner’s unreported income,
petitioner is liable for a deficiency for 2004 that, net of
withholding, exceeds $1,000. And, it has been shown that
petitioner had a tax liability in 2003.
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