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Failure To Timely File
Section 6651(a)(1) imposes an addition to tax for failure to
file a return on the date prescribed (determined with regard to
any extension of time for filing), unless such failure is due to
reasonable cause and not due to willful neglect. 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
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.
Mr. Maher stipulated that he did not file his return for
4(...continued)
To substantiate a deduction attributable to automobile
expenses, a taxpayer must maintain adequate records or present
corroborative evidence to show the following: (1) The amount of
the expense; (2) the time and place of use of the listed
property; and (3) the business purpose of the use. Sec. 1.274-
5T(b)(6), Temporary Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6,
1985). Mr. Maher did not maintain adequate records or present
corroborative evidence regarding his automobile expenses.
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Last modified: May 25, 2011