James B. Clark - Page 10

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               3.   Unreimbursed Business Expenses                                    
              Petitioner contends that he had $21,355 in unreimbursed                 
         employee expenses in 2001.  We disagree.  Petitioner did not                 
         offer any persuasive evidence showing that he may deduct any of              
         these amounts.  There is no evidence that petitioner paid any                
         amounts for unreimbursed employee business expenses in 2001.                 
              We conclude that petitioner may not deduct any amount for               
         unreimbursed employee business expenses in 2001, and we sustain              
         respondent’s determination of petitioner’s deficiencies for 1998,            
         2000, and 2001.                                                              
         C.   Whether Petitioner Is Liable for the Addition to Tax for                
              Failure To Timely File Under Section 6651(a)(1) for 1998,               
              and for the Accuracy-Related Penalty Under Section 6662(a)              
              for 1998, 1999, and 2000                                                
              Section 7491(c) places on the Commissioner the burden of                
         producing evidence that it is appropriate to impose a particular             
         addition to tax or penalty.  To meet that burden, the                        
         Commissioner need not produce evidence relating to defenses such             
         as reasonable cause or substantial authority.  Higbee v.                     
         Commissioner, 116 T.C. 438, 446 (2001); H. Conf. Rept. 105-599,              
         at 241 (1998), 1998-3 C.B. 747, 995.                                         
              Respondent has met the burden of production with respect to             
         the addition to tax for failure to timely file a return for 1998             
         by showing that petitioner and Mrs. Clark filed a joint 1998                 
         return on November 19, 2000.  Respondent has met the burden of               
         production with respect to the accuracy-related penalty under                





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