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which the facts and circumstances show that the taxpayer acted
with reasonable cause and in good faith. Sec. 6664(c)(1); sec.
1.6664-4(b)(1), Income Tax Regs.
Respondent bears the burden of production with respect to
this addition to tax and these accuracy-related penalties. Sec.
7491(c). In order to meet this burden, respondent must produce
sufficient evidence establishing that it is appropriate to impose
these items. Once respondent has done so, the burden of proof is
upon petitioner. Higbee v. Commissioner, 116 T.C. at 449.
Respondent has satisfied his burden of production with
respect to the addition to tax in that the record establishes
that petitioner filed his 1997 tax return after its due date.
Respondent has also satisfied his burden of production with
respect to the section 6662(a) accuracy-related penalties to the
extent that the record establishes that petitioner understated
his tax for each of the subject years by the greater of 10
percent of the tax required to be shown on the return or $5,000.
With regard to both the addition to tax and the accuracy-related
penalties, petitioner must establish reasonable cause in order to
prevail. Id. Petitioner filed his 1997 tax return more than 11
months after the due date, and he has presented no evidence
establishing that his failure to file that return timely was due
to reasonable cause and not due to willful neglect. Petitioner
has also failed to introduce any evidence establishing that he
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