- 15 -
II. Section 6651(a)(1) Addition to Tax
A. General Rules
Respondent determined that petitioner is liable for an
addition to tax under section 6651(a)(1) for failure timely to
file its 1995 Federal corporation income tax return. Section
6651(a)(1) provides for an addition to tax of 5 percent of the
tax required to be shown on the return for each month or fraction
thereof for which there is a failure to file, the aggregate not
to exceed 25 percent. In order to avoid the imposition of the
addition to tax, the taxpayer bears the burden of proving that
the failure did not result from willful neglect and that the
failure was due to reasonable cause. Sec. 6651(a)(1); United
States v. Boyle, 469 U.S. 241, 245 (1985).
B. Burden of Production and Burden of Proof
Section 7491(c) provides: “Notwithstanding any other
provision of this title, the Secretary shall have the burden of
production in any court proceeding with respect to the liability
of any individual for any penalty, addition to tax, or additional
amount imposed by this title.” The burden of production imposed
by section 7491(c) is to produce evidence regarding the
appropriateness of applying a particular addition to tax or
penalty on the taxpayer. Higbee v. Commissioner, 116 T.C. 438,
446 (2001). Once the Commissioner meets his burden of
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011