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with respect to penalties and additions to tax. Sec. 7491(c).
To meet the burden of production under section 7491(c), the
Commissioner must come forward with evidence showing that it is
appropriate to impose the particular penalty but need not
introduce evidence of elements 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. The request for an extension is not in the record, and,
thus, we cannot tell how much tax petitioner estimated was due.
There is no evidence to support respondent’s allegation that
petitioner’s extension is invalid, or that petitioner did not
properly estimate the amount of tax due and remit the estimated
tax with the extension request. We conclude that respondent has
failed to meet the burden of production under section 7491(c),
that petitioner’s extension is valid, and that he is not liable
for the addition to tax for failure to timely file his 1997
income tax return.
E. Whether Petitioner Is Liable for the Accuracy-Related
Penalty
Taxpayers are liable for a penalty equal to 20 percent of
the part of the underpayment attributable to negligence or
disregard of rules or regulations. Sec. 6662(a) and (b)(1).
Negligence includes failure to make a reasonable attempt to
comply with internal revenue laws or to exercise ordinary and
reasonable care in preparing a tax return. Sec. 6662(c).
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Last modified: May 25, 2011