Timothy John Patton - Page 5




                                        - 5 -                                         
          evidence.  Therefore, we conclude that the burden of proof is not           
          placed on respondent pursuant to section 7491(a).  Accordingly,             
          we sustain respondent’s deficiency determinations.                          
               B.   Additions to Tax                                                  
               Section 7491(c) provides that the Commissioner shall bear              
          the burden of production with respect to the liability of any               
          individual for additions to tax.  To meet his burden of                     
          production, the Commissioner must come forward with sufficient              
          evidence indicating that it is appropriate to impose this                   
          addition to tax.2  See Higbee v. Commissioner, 116 T.C. 438, 446            
          (2001).                                                                     
               Respondent submitted, and the Court received as evidence,              
          the declaration of Revenue Agent Dick Laakso, a letter dated                
          December 26, 2000, from petitioner to the Internal Revenue                  
          Service (IRS), copies of several checks for the years in issue              
          from Texas College at Tyler payable to petitioner, two personnel            
          action forms listing petitioner as an assistant professor of                
          business and the annual salary he received ($35,000 in 1996 and             
          $36,050 in 1997), petitioner’s Forms W-2, petitioner’s transcript           


               2  We do not decide herein whether the Commissioner could              
          meet the burden of production if he did not produce any evidence            
          when the taxpayer failed to appear for trial.  For example, it              
          might be possible for the Commissioner to satisfy the burden of             
          production under sec. 7491(c) without presenting any evidence if            
          the answer contained “well-pleaded facts”.  Smith v.                        
          Commissioner, 91 T.C. 1049, 1056-1057, 1058-1059 (1988), affd.              
          926 F.2d 1470 (6th Cir. 1991).  We, however, leave that decision            
          for another day.                                                            





Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011