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production, the taxpayer must produce evidence sufficient to
persuade the Court that the Commissioner’s determination is
incorrect. Id. at 447.
Section 7491 is effective only for court proceedings that
arise in connection with examinations commencing after July 22,
1998. Internal Revenue Service Restructuring and Reform Act of
1998, Pub. L. 105-206, sec. 3001(c), 112 Stat. 727. The record
here is devoid of evidence showing that the underlying
examination began after the relevant date. Respondent assumes
that petitioner bears the burden of proof, and petitioner does
not address this issue. As previously stated, we have concluded
that section 7491(c) does not apply in this case. But whether or
not section 7491(c) applies, respondent has produced sufficient
evidence to satisfy the burden of production with respect to the
appropriateness of applying the addition to tax.
C. Analysis
Respondent claims that petitioner’s 1995 return was received
by respondent’s Fresno Service Center on December 2, 1996.
Respondent argues that petitioner has not produced any evidence
that the return was timely filed or that petitioner exercised
ordinary care and prudence in filing the return. Petitioner
argues that its 1995 return reflects a signature date of October
15, 1996 and was “filed in a timely manner by depositing in U.S.
Mail.” Petitioner also asserts that it filed an appropriate
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