- 7 -
87 T.C. 74, 77 (1986).
Even if we were to accept petitioner’s testimony, the
evidence does not establish that any of the alleged losses (from
the seizure of the firearms or the alleged theft of property)
occurred in 1999.
C. Conclusion
Based on the foregoing, we sustain respondent’s deficiency
determination.
II. 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. “The Commissioner’s burden of
production under section 7491(c) is to produce evidence that it
is appropriate to impose the relevant penalty”. Swain v.
Commissioner, 118 T.C. 358, 363 (2002); see also Higbee v.
Commissioner, 116 T.C. 438, 446 (2001). If a taxpayer files a
petition alleging some error in the determination of the penalty,
the taxpayer’s challenge generally will succeed unless the
Commissioner produces evidence that the penalty is appropriate.
Swain v. Commissioner, supra at 364-365. The Commissioner,
however, does not have the obligation to introduce evidence
regarding reasonable cause or substantial authority. Higbee v.
Commissioner, supra at 446-447.
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