- 16 -
Commissioner, 512 F.2d 882 (9th Cir. 1975), affg. T.C. Memo.
1972-133. Under section 6001, petitioners bear the sole
responsibility for maintaining their business records. They have
neither identified nor proven any additional deductions to which
they are entitled. The categories duplicate those claimed on
NHIL’s return and appear questionable as employee expenses. No
deductions may be allowed on this record.
Addition to Tax and Penalty
Respondent determined an addition to tax for failure to
file timely under section 6651(a)(1) and an accuracy-related
penalty for substantial understatement under section 6662(a).
Respondent has the burden of production under section 7491(c) for
the addition to tax and the penalty and must come forward with
sufficient evidence that it is appropriate to impose the penalty.
See Higbee v. Commissioner, 116 T.C. 438, 446-447 (2001).
Respondent determined the addition to tax for late filing
because petitioners did not file until July 18, 1997. Section
1.6081-4, Income Tax Regs., provides for an automatic 4-month
extension if the taxpayer files an application for extension on
Form 4868, Application for Automatic Extension of Time to File
U.S. Individual Income Tax Return, on or before the due date for
filing the return if certain requirements are met. There is no
evidence that petitioners applied for an extension of time to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011