T.C. Mem o. 2 01 4- 12 9

UNITED STAT ES TAX COURT

BARBARA A. KUPERSMIT, Pet it io ne r v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 10 16 9- 13
. Fi le d J un e 2 6, 2 01 4.

Barb ara A. Kupe rs m it , pro se. Dan ie l C. M un ce an d J as on M. Kur atni ck , for res po nd en t.

MEMORANDUM FINDINGS OF FACT AND OPINION NEGA, Jud ge : Re sp on de ntde te rm in eda de fic ie nc y of $ 12 ,30 0 i n pe ti ti on er’s i nc om e ta x fo r ta x year 20 10 an d a dd it io ns to tax un de r se ct io ns 66 51 (a)( 1) an d (2 ) an d 6 65 4( a) o f $1 ,64 3, $ 73 0, an d $ 14 5, re sp ect iv el y . 1
Unl es s o th erwi se in di cat ed , all sec ti on refe ren ces are t o t he Int ern al 1 (co nt in ue d...)- 2 -

[* 2] Res po nd en t m ai le d ano ti ce o f de fic ie nc y to pe ti ti on er, an d s he ti m el y fil eda pe ti ti on inth is Co urt. The is su es forde ci si on are: (1) whet he r certa in pa ym en ts fro m y ears be fo re 2 01 0 re du ce o r el im in at e p et it io ne r’s in co m e ta x l iabi li ty for t ax y ear 2 01 0, an d (2 ) whe th er p et it io ne r is li ab le forad di ti on s t o t ax un de r se ct io ns 66 51 (a)( 1) an d (2 ) an d/ or66 54 (a). FINDINGS OF FACT The st ip ul at io n o f fac ts , th e supp le m en ta l s ti pu lati onof f act s, an d t he at ta ch edex hi bi ts are i nc or po rat edhe rei n b y

th is refe ren ce. Pet it io ne r was m arri ed
an d re si de d i n Yar dl ey , Penns y lv an ia , at the ti m e sh e fi le d h er p et it io n. Pet it io ne r’s In co m e fo r 20 10 , Sub st itut e fo r Return, an d No ti ce o f Defi ci en cy Dur in g 2 01 0, the tax y ear a t i ss ue , pet it io ne r rec ei ve d t ax ab le in co m e fro m se ve ral di ffer en t s ou rces . She rece iv edSo ci al Secu rit y be ne fit s t ot al in g $ 22 ,72 2, $1 9,3 14 of wh ic h was tax ab le , fro m th e So ci al Secu rity

Adm in is tra ti on . She als o 2
rece iv eda gr os s p en si on di st rib ut io n o f $4 4,2 32 , $4 3,8 59 of wh ic h was a ta xabl e pe ns io n d is tri bu ti on , fro m th e St at e o f New Je rs ey , Div is io n o f Pen si on an d Ben efi ts ; $ 2,8 83 of i nc om e ta x was withh el d o n the di st rib ut io n. Fro m Pru de nt ia l (...co nt inue d) 1 Rev enue Co de ineffe ctforth e y ear a t i ss ue , andall Ru le refe ren ces are t o t he Tax Co urt Ru le s o f Prac ti ce an d P ro cedur e. All m on et ary am ou nt s ar e ro un de d t o t he ne ares t d ol lar. 2- 3 -

[* 3] In su ran ce Co . of Am eri ca, s he rece iv eda gr os s d is tri bu ti on of $ 10 ,56 6, the
en ti re am ou ntof wh ic h was tax ab le ; $ 2,1 13 of i nc om e ta x was withh el d o n t he di st rib ut io n. Inad di ti on , sh e rec ei ve d t ax ab le in te res t o f $1 8 fr om TD Bankan d $5 2 fr om So ve rei gn Ban k. Attri al pe ti ti on er ag reedwith t he un de rlyin g de fic ie nc y . Pet it io ne r di d n otfil e a t im el y Fo rm 10 40 A, U.S. Ind iv idua l In co m e Tax Return, fo r ta x year 20 10 , andsh e d idno t m ak e an y est im at edtax pa ym en ts or ot he r pa ym en ts of t ax fortax y ear 2 01 0, ap artfro m $4 ,99 6 p ai d t hr ou gh withh ol di ng . Con se qu en tl y , res po nd en t p rep areda subs ti tu te forreturn (S FR) o n Decem be r 10 , 20 12 , whi chin cl ud edth e it em s o f in co m e d es cri be d abo ve . The SFR c om pu te d p et it io ne r’s in co m e ta x l iabi li ty as $1 2,3 00 as we ll as a dd it io ns to ta x o f $1 ,64 3 fo r fai lu re t o t im el y fil e a return u nd er s ect io n 6 65 1( a)(1 ), $7 30 for fai lu re t o t im el y

pa y tax sh own on a return u nd er s ect io n 6 65 1( a)(2 ), an d $ 14 5 fo r fai lu re t o p ay

est im at edtax un de r se ct io n 6 65 4( a). On F eb ru ary 11 , 20 13 , res po nd en t i ss ue d p et it io ne r a s ta tu to ry no ti ce o f de fic ie nc y

for tax y ear 2 01 0. On Dec em

be r 10 , 20 13 , pet it io ne r subm it te d t o re sp on de nt ’s cou ns el up on hi s re qu es t a F orm

10 40 A fortax y ear 2 01 0 l is ti ng he r fi li ng st atus as m arri ed fil in g s ep arat el y . Peti ti on er cl ai m edth atsh e subm itte d t he return u nd er dur es s fro m th e In te rn al Rev enue Serv ic e (IR S), an d, ac co rd in g t o re sp on de nt ’s cou ns el ,- 4 -

[* 4] th e IRS refu se d t o a ccep t i t as he r return fo r ta x year 20 10 . The t ax return pe ti ti on er s ub m itte d o n Dec em be r 10 , 20 13 , was n otin tro du cedin to ev id en ce an d
was ex cl ud edfro m

th e st ip ul at io n o f fact s an d t he fin al ex hi bi ts . Paym en ts an d R efu nd s R el at in g t o Tax Years Befo re 2 01 0 On s ev eral oc cas io ns du rin g 2 00 8 a nd20 09 pe ti ti on er an d h er s po us e subm it te d c he ck s t o t he IRS fo r es ti m at edtax pa ym en ts : (1 ) a ch eckfor$5 00 on Ja nu ary 6, 2 00 8, wi th a no ta ti on of “ Fi rs t Qtr--’09 ”; (2) a ch eckfor$1 0,0 00 on Ju ly 1, 20 08 , with ano ta ti on of “ Est im at ed --2 00 8” ; (3 ) a ch eckfor $5 00 on Apri l 13 , 20 09 , with ano ta ti onof “ Est im at ed ”; an d (4 ) a ch eckfor$5 00 on Ju ne 10 , 20 09 , with ano ta ti onof “ Est im at edTax” . Peti ti on er’s acc ou nttra ns cri ptfortax y ear 2 00 7 s ho ws tha t s he ha d c red it s o f $3 ,00 0 fr om 20 07 . In ad di ti on , th e IRS is su eda refu ndch eckfor $3 ,32 6 t o p et it io ne r an d h er s po us e in 20 08 an d a no th er refu ndch eckfor$3 ,23 0 i n 2 01 0. Pe ti ti on er an d h er s po us e d idno t ca sh eit he r of th e two refu ndch eck s. Pet it io ne r di d n otfil e a t im el y Fo rm 10 40 A foreit he r 20 08
or20 09
. 3 Pet it io ne r m ak es two arg um en ts with re sp ectto th e 2 00 8 a nd20 09 pa ym en ts an d t he un cas he d re fundch eck s. Fi rs t, p et it io ne r arg ue s tha t the se
Pet it io ne r fi le d alat e return fo r ta x year 20 09 on Marc h 8 , 20 13
. 3 Pet it io ne r’s ta x re tu rnfor20 09 ha s n otbe enin tro du cedin to ev id en ce.- 5 -

[* 5] am ount s ar e o ve rp aym en ts . Seco nd , pet it io ne r arg ue s tha t s in ce the se am ount s ar e o ve rp aym en ts , th ey sh ou ldreduc e o r el im in at e h er t ax li ab il ity fortax y ear 2 01 0. 4 OPINION I. Bu rd enof P ro of Ord in ari ly, th e Co m

m is si on er’s d et erm in at io n a s t o atax pay er’s t ax li ab il ity is pre su m edco rrec t, an d t he tax pa y er b ears th e b ur de n o f pr ov in g o th erwi se . See Ru le 14 2( a); W el chv. Hel ve rin g, 2 90 U.S. 11 1, 1 15 (19 33 ). Pet it io ne r arg ue s tha t th e b ur de n o f pr oo f in th is cas e sh ou ldbe sh ift edto res po nd en t, ci ti ng Po rti ll o v . Co m m is si on er, 9 32 F.2d11 28 (5t h C ir. 1 99 1) , aff’g i n p art , rev ’g inpa rt T.C. Mem o. 1 99 0- 68 . Peti ti on er’s rel ianc e o n P orti ll o i s m is pl aced . It i s a we ll
es tabl is he d p rin ci pl e th atth e b ur de n s hi fts to th e Co m m is si on er wh ena ta xp ay er pr ov es th atth e as se ss m en t i s arbi tra ry , exc es si ve , or wi th ou t fo un da ti on . See, e.g ., Berk ery v. Co m

m is si on er, 9 1 T.C. 1 79 , 18 6 (1 98 8) (“ Whe n * * * res po nd en t’s
Pet it io ne r m ak es cert ai n a rg um en ts rel at in g t o h er t ax li ab il it ie s ar is in g 4 fro m tax y ears be fo re 2 01 0 a ndtax li en s i m po se d a ga in sthe r ho us e as a co ns eque nc e o f th os e li ab il it ie s. Th e Co urt i s a c ou rt o f li m it edjuri sd ic ti on , and in th e in st an t ca se we have juri sd ic ti on on ly ove r ta x year 20 10 . See, e.g ., Nafte l v. Co m m is si on er, 8 5 T.C. 5 27 , 53 3 (1 98 5) (“ [J ]uris di ct io n e xt en ds to th e en ti re subjec t m at te r of

th e co rrec t t ax forth e ta xabl e y ear.” ). Becaus e th es e ev en ts are un rel at edto pe ti ti on er’s t ax y ear 2 01 0, we d o n otha ve juri sd ic ti on to de ci de th es e arg um en ts . Accor di ng ly, we wil l n otdi sc us s the se arg um en ts inth is op in io n.- 6 -

[* 6] de te rm in at io ns are s ho wn t o b e arb itrary andex ces si ve * * * the bu rd enof go in g fo rwardwith e vi de nc e sh ift s t o re sp on de nt .”), aff’d wi th ou t p ub li sh ed op in io n, 8 72 F.2d41 1 (3 d C ir. 1 98 9) . The h ol di ng of P orti ll o c on firm edth e pr in ci pl e th atth e Co m

mis si on er i s o rd in ari ly ent it le d t o t he pre su m pt io n o f
co rrec tn es s, b utth is pre su m pt io n d oe s n otap pl y

when th e Co m

m is si on er’s
as se ss m en t i s b as edon a na ke d a ss ert io n tha t a t ax pa y er re cei ve d u nr ep orte d in co m e “ ‘w itho utany

fou nd at io n wh at so ev er.’” Port il lo v. Co m m is si on er, 9 32 F.2 d a t 1 13 3 (quo ti ng Uni te d S ta te s v . Jan is , 42 8 U.S. 4 33 , 44 2 (1 97 6) ). Pet it io ne r st ip ul at edth atsh e rec ei ve d t ax ab le in co m e in 20 10 inth e am ou nt th atres po nd en t d et erm in edinth e n ot ic e o f de fic ie nc y . Accor di ng ly, we ho ldth at pe ti ti on er h as no t s ho wn tha t re sp on de nt ’s det erm in at io n o f he r ta x l iabi li ty w as arb itrary, exces si ve , or wi th ou t fo un da ti on . The b ur de n o f pr oo f th eref or e rem ai ns with p et it io ne r. II. Tax Owin g Thi s ac ti on was c omm en cedinres po ns e to a no ti ce o f de fic ie nc y with
res pe ctto pe ti ti on er’s 2 01 0 F ed eral in co m e ta x l iabi li ty. The Tax Co urt i s a c ou rt of li m it edjuri sd ic ti on inth atitpo ss es se s o nl y ad jud ic at ory

po wers th atCo ng res s ha s co nf erre d upo n i t. Hil le nb ran d v . Commis si on er, T.C. Mem o. 2 00 2- 30 3, 8 4 T.C.M. (CC H) 64 3 (2 00 2) ; s ee al so Petru li s v . Comm is si on er, 9 38 F.2d78 (7t h- 7 -

[* 7] Ci r. 19 91 ); Na fte l v
. Co m m is si on er, 8 5 T.C. 5 27 (19 85 ). Sect io n 6 21 4( a)
au th or iz es th e Tax Co urt t o re de te rm in e d efi ci en ci es , as d efi ne d b y sec ti on 62 11 (a). Hil le nb ran d v . Comm is si on er, 8 4 T.C.M . (CCH) at64 5; see als o B oc oc k v. Co m m is si on er, 1 27 T.C. 17 8, 1 81 (20 06 ). Sect io n 6 51 2( b) gi ve s the Tax C ou rt juri sd ic ti on to de te rm in e anov erp aym en t i n c ert ai n c irc um st an ces . Mor eo ve r, th e Tax Co urt h as juri sd ic ti on on ly for t ax ab le y ears pro pe rly befo re i t. Sec . 62 14 (b );
se e al so Hil l v . Comm is si on er, 9 5 T.C. 4 37 (19 90 ). Pet it io ne r as ks th atwe co ns id er the pa y m en ts m ad e in 20 08 an d 2 00 9 a nd th e unc as he d re fundch eck s as pri or -y ear o ve rp aym en ts th atsh ou ldbe ap pl ie d fo r 20 10 . After s uc h app li cat io n, p et it io ne r arg ue s, s he wou ldno t o we ta x fo r ta x year 20 10 . W e as su m e th atpe ti ti on er’s arg um en t i s tha t, i n e ss en ce, the se pa y m en ts sh ou ldbe cred it edto reduc e o r el im in at e th e ta x o win g fo r 20 10
. Res po nd en t 5 arg ue s tha t the pa y

m en ts pe ti ti on er an d h er s po us e m ad e fo r y ears ot he r th an20 10 ha ve no be ari ng onth e d efi ci en cy de te rm in at io n fo r ta x year 20 10 . Res po nd en t furth er ar gu es th atth e ex is te nc e o r am ou ntof t he ov erp aym en t o f ta x fo r 20 08
can no t b e as cert ai ne d b ecau se pe ti ti on er’s t ax li ab il ity fortax y ear 2 00 8 h as no t

Pet it io ne r do es no t ar gu e th atth e rem it tanc es in20 08 an d 2 00 9 wer e 5 de po si ts rathe r th anpa ym en ts . There fo re, we d o n otco ns id er wh ethe r pe ti ti on er m ay us e th os e am ou nt s as paym en t o f he r 20 10 de fic ie nc y .- 8 -

[* 8] y etbe ende te rm in edan d, i n a ny case , is irr el ev an t i n d et erm in in g t he de fic ie nc y

for20 10 . W e ag ree wi th res po nd en t. Res po nd en t h as no t d et erm in eda de fic ie nc y with re sp ectto an y

y ear o th er th an20 10 . Gener al ly, we m ay no t d eci de whet he r anov erp aym en t i s p res en t fo r an y ot he r y ear. Se e se cs . 62 14 (b ), 65 12 (b )(1 ). As 2 01 0 i s the on ly y ear b efo re the Co urt, we l ackjuri sd ic ti on to de te rm in e whe th er p et it io ne r ov erp ai d h er t ax es for
an y pri ory ear, an d we a ls o l ackjuri sd ic ti on to ap pl y an y su chov erp aym en t ag ai ns t h er 2 01 0 d efi ci en cy . See, e.g ., Patr on ik -Ho ld er v . Comm is si on er, 1 00 T.C. 37 4 (1 99 3) ; So lb erg v. Co m m is si on er, T.C. Mem o. 2 01 1- 22 1; Po rte r v. Co m m is si on er, T.C. Mem o. 2 01 0- 15 4; Ste wartv. Co m m is si on er, T.C. Mem o. 19 98 -3 19 . Furt he rm or e, ev enif the 20 08 an d 2 00 9 p aym en ts an d u nc as he d re fund ch eck s wer e o ve rp aym en ts of t ax du e, res po nd en t h as no ob li ga ti on to ap pl y pa ym en ts fro m

pri ory ears fortax y ear 2 01 0. Se e, e.g ., W eb er v . Commis si on er, 13 8 T.C. 3 48 (20 12 ). W e la ckjuri sd ic ti on to de te rm in e th atth e p aym en ts pe ti ti on er m ad e in 20 08
an d 2 00 9 a ndth e unc as he d re fundch eck s wer e o ve rp aym en ts an d t he refo re d o n ot ap pl y an y su cham ou nt s ag ai ns t p et it io ne r’s de fic ie nc y intax fortax y ear 2 01 0.- 9 -

[* 9] III. Add it io ns to Tax A. Sect io n 6 65 1( a)(1 ) Add it io n t o Tax Sect io n 6 65 1( a)(1 ) pr ov id es forth e im po si ti on of an a dd it io n t o t ax for fai lu re t o fi le a ti m el y

return. Re sp on de ntin tro du cedreco rd s s ho win g t ha t pe ti ti on er’s 2 01 0 re tu rnwas n otfil edti m el y , th ereb y sat is fy in g h is bu rd enof pr oduc ti on un de r se ct io n 7 49 1( c). If the tax pa y er es tabl is he s tha t the fai lu re t o fi le is du e to reas on ab le cau se an d n otdu e to wil lfu l n eg le ct , he o r sh e m ay be rel ie ve d fro m th e ad di ti on to tax un de r se ct io n 6 65 1( a)(1 ). Sec. 6 65 1( a)(1 ); Un it edSta te s v. Bo y le , 46 9 U.S. 2 41 , 24 5 (1 98 5) ; Ad le r v. C omm is si on er, T.C. Mem o. 2 01 0- 47 , aff’d, 4 43 Fed . App x. 7 36 (3dCir . 20 11 ). Pet it io ne r be ars th e b ur de n o f pr ov in g th atth e fai lure t o fi le was due to reas on ab le cau se . See Bo y le , 46 9 U.S. at24 5; Hig be e v . Comm is si on er, 1 16 T.C. 43 8, 4 46 -4 47 (20 01 ). Reas on ab le cau se ex is ts if t he tax pa y er m ak es a sa ti sf act ory sh owi ng th atsh e ex erci se d o rd in ary bu si ne ss care an d p ru de nc e. Bo y le , 46 9 U.S. at24 6. Pe ti ti on er as se rts th atsh e an d h er sp ou se ha ve be enreque st in g g ui da nc e fro m th e IRS si nc e 2 00 7 wi threg ardto al le ge dl y in co rrec t Fo rm s 1 09 9- MIS C, Mi sc el lane ou s In co m e, th atth ey rece iv ed in 20 07 , bu t the y

ha d n otrece iv edan y

gu id an ce fr om

th e IRS reg ard in g t he ir in qu iri es up un ti l the ti m e o f tr ia l. Pet it io ne r fu rth er s ug ge st s tha t h er fa il ur e to ti m el y fil e an d fa il ur e to ti m el y pa y are due to su chun res po ns iv en es s o n t he pa rt- 10 -

[* 10 ] of t he IRS. With ou t m or e, ho wev er, thi s as se rti on is in su ffi ci en t t o e st ab li sh th atsh e h adreas on ab le cau se forhe r fai lu re t o t im el y fil e o r th atsh e qua li fie s fo r an y ex cep ti on to th e se ct io n 6 65 1( a)(1 ) ad di ti on to tax . Accor di ng ly, we fi ndth at pe ti ti on er i s l iabl e fo r th e ad di ti on to tax un de r se ct io n 6 65 1( a)(1 ). B. Sect io n 6 65 1( a)(2 ) Add it io n t o Tax Sect io n 6 65 1( a)(2 ) im

po se s an ad di ti on to tax forfai lure t o p ay th e am ou nt of tax sh own on a return. Whena ta xp ay er d oe s n otti m el y fil e a return fo r th e ta x y ear a t i ss ue , a va li d S FR p rep aredby the Co m mis si on er p ur su an t t o s ect io n 60 20 (b ) is tre at edas t he return fi le d b y th e ta xp ay er fo r pu rp os es of s ect io n 66 51 (a)( 2) . Sec. 6 65 1( g) (2 ). Sect io n 6 65 1( a)(2 ) do es no t ap pl y when th e ta xp ay er p ro ve s tha t fa il ur e to pay was due to reas on ab le cau se an d n otwil lfu l
ne gl ect . Sec. 6 65 1( a)(2 ). If th e ta xp ay er m ak es a sa ti sf act ory sh owi ng th atsh e ex erci se d o rd in ary bu si ne ss care an d p ru de nc e inpro vi di ng for pa ym en t o f he r ta x li ab il ity bu t n ev erthe le ss eit he r was un ab le to pay th e ta x o r wou ldsu fferun du e ha rd sh ip , sh e is de em edto ha ve su cces sf ul ly establ is he d re as on ab le cau se for pu rp os es of s ect io n 6 65 1( a)(2 ). Sec. 3 01 .66 51 -1 (c)( 1) , Pro ced . & Adm in . Reg s. The pa rti es st ip ul at edth atpe ti ti on er m ad e n o p aym en ts of t ax with re ga rdto ta x year 20 10 ex cep t fo r th os e p aym en ts m ad e th ro ug h wi th ho ld in g. Re sp on de nt in tro du ceda va li d S FR fo r pe ti ti on er’s 2 01 0 t ax y ear. Th atSFR i s s ub sc rib ed ,- 11 -

[* 11 ] co nt ai ns su ffi ci en t i nf orm at io n t o c om

pu te pe ti ti on er’s l iabi li ty, an d p ur po rts to be a va li d re tu rnan d i s, the refo re, a v al idSFR fo r pu rp os es of s ect io n 66 51 (a)( 2) . See Wheel er v . Comm is si on er, 1 27 T.C. 20 0 (2 00 6) , aff’d, 5 21 F.3d 12 89 (10 th Cir . 20 08 ); S pu rlo ck v. Co m m is si on er, T.C. Mem o. 2 00 3- 12 4. Pet it io ne r di d n otin tro du ce an y ev id en ce o r ot he rwis e p ro ve th atsh e was un ab le to pa y or t ha t u ndue ha rd sh ip wou ldha ve res ul te d fr om m ak in g t he pa ym en ts . Co ns eque nt ly, pe ti ti on er h as no t m ethe r bu rd enof p ers ua si on , andwe ho ldth at sh e is li ab le foranad di ti on to tax un de r se ct io n 6 65 1( a)(2 ). C. Sect io n 6 65 4( a) Ad di ti on to Tax Sect io n 6 65 4( a) an d (b ) pr ov id es foranad di ti on to tax inth e ev en t o f an
un de rp aym en t o f a requi redin st al lm en t o f in di vi du al est im at edtax . As rel ev an t t o th is cas e, eac h re qu ire d i ns ta ll m en t o f es ti m at edtax is equa l t o 2 5% o f th e

“ requi redan nu al pa ym en t” , whi chintu rnis equa l t o the les se r of (1) 90 % of t he ta x s ho wn o n t he in di vi du al ’s return fo r th aty ear ( or , if n o re turnis fil ed , 90 % of hi s o r he r ta x fo r su chy ear) , or (2 ) if th e in di vi du al fil eda return fo r th e imm ed ia te ly prece di ng tax ab le y ear, 1 00 % of t he tax sh own onth atreturn. Se c. 66 54 (d )(1 )(A) an d (B ). Res po nd en t m etth e b ur de n o f pr oduc ti on for th e se ct io n 6 65 4( a) ad di ti on to ta x b y sh owi ng th atpe ti ti on er h ada requi redannu al pa ym en t. Wheel er v .- 12 -

[* 12 ] Co m

m is si on er, 1 27 T.C. at 2 11 -2 12 . Peti ti on er fi le d l at e returns fortax y ears 20 09 an d 2 01 0 a fte r th e is su an ce o f th e n ot ic e o f de fic ie nc y inth is cas e, an d
so we di sr eg ardth os e returns forpu rp os es of s ect io n 6 65 4( d) (1 )(B) (i) an d (i i). See M en de s v . Comm is si on er, 1 21 T.C. 30 8, 3 24 -3 25 (20 03 ); R eyno so v. Co m m is si on er, T.C. Mem o. 2 01 3- 25 ; El li s v . Comm is si on er, T.C. Mem o. 20 07 -2 07 , aff’d i n p art , rev ’d inpa rt, 3 46 Fed . App x. 3 46 (10 th Cir . 20 09 ). Pet it io ne r’s requi redan nu al pa ym en t i s thu s 9 0% o f th e ta x o wedfortax y ear 20 10 . See s ec. 6 65 4( d) (1 )(B) (i)
. Pet it io ne r fai le d t o s ho w th atan y of t he st atut ory

ex cep ti on s u nd er s ect io n 66 54 (e) app li es . See s ec. 1 .66 54 -1 (a)( 1) , Inc om e Tax Reg s.; see als o M cLai ne v. Co m m is si on er, 1 38 T.C. 22 8, 2 49 (20 12 ) (the tax pa y er b ears th e b ur de n o f sh owi ng th aton e o f th e rel ie f pr ov is io ns of s ect io n 6 65 4( e) ap pl ie s) . Accor di ng ly, we ho ldth atpe ti ti on er i s l iabl e fo r th e se ct io n 6 65 4( a) ad di ti onto tax . W e h av e co ns id eredall of t he co nt en ti on s an d a rg um en ts rai se d b y th e pa rti es , and , to th e ex te ntth ey are n otdi sc us se d h erei n, we fi ndth em to be witho ut
m eri t, i rrel ev an t, an d/ orm oo t.- 13 -

[* 13 ] To re fle ctth e fo reg oi ng , Deci si on wil l b e en te redfor
res po nd en t.