John H. Webster - Page 6




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          no bearing on his 1997 tax liability.  This Court is a court of             
          limited statutory jurisdiction and lacks general equitable                  
          powers.  Commissioner v. McCoy, 484 U.S. 3, 7 (1987).                       
          Accordingly, we do not have jurisdiction over petitioner’s claims           
          against the Federal Government arising from his 1990 felony                 
          conviction.  Therefore, we sustain respondent’s determination of            
          the deficiency.                                                             
               Respondent determined that petitioner is liable for an                 
          addition to tax pursuant to section 6651(a)(1) and an addition to           
          tax pursuant to section 6654(a).  Respondent bears the burden of            
          production with respect to both additions to tax.  Sec. 7491(c).2           
          To meet his burden of production, respondent must come forward              
          with sufficient evidence indicating that it is appropriate to               
          impose the relevant penalty.  The burden of proof remains with              
          petitioner.  See Higbee v. Commissioner, 116 T.C. 438, 446-447              
          (2001).                                                                     
               Section 6651(a)(1) imposes an addition to tax for failure to           
          file a Federal income tax return, unless it is shown that such              
          failure is due to reasonable cause and not due to willful                   
          neglect.  United States v. Boyle, 469 U.S. 241, 245 (1985).  A              

               2The Internal Revenue Service Restructuring and Reform Act             
          of 1998, Pub. L. 105-206, sec. 3001, 112 Stat. 685, 726, added              
          sec. 7491(c), which places the burden of production on the                  
          Secretary with respect to a taxpayer’s liability for penalties              
          and additions to tax in court proceedings arising in connection             
          with examinations commencing after July 22, 1998.  Sec. 7491(c)             
          applies because the examination in this case commenced in 1999.             





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