Maintenance, Painting & Construction, Inc. - Page 11

                                       - 11 -                                         
          “conscious, intentional failure or reckless indifference.”                  
          United States v. Boyle, 469 U.S. 241, 245 (1985).                           
               Respondent bears the burden of production with respect to              
          this addition to tax.  Sec. 7491(c).  In order to meet this                 
          burden, respondent must produce sufficient evidence that it is              
          appropriate to impose this addition to tax.  Once respondent has            
          done so, the burden of proof as to reasonable cause or other                
          mitigating factors is upon petitioner.  Higbee v. Commissioner,             
          116 T.C. 438, 446-447, 449 (2001).                                          
               Respondent has satisfied his burden of production with                 
          respect to the addition to tax in that the record establishes               
          that petitioner filed his 1997 tax return after its due date.               
          Petitioner must establish reasonable cause in order to prevail.             
          Id.  Petitioner filed the subject tax return approximately 4                
          years after its due date, and petitioner has not presented any              
          evidence establishing that the failure to file that return timely           
          was due to reasonable cause and not due to willful neglect.  We             
          sustain respondent’s determination as to the addition to tax.               
                                                                                     
               All arguments made by the parties and not discussed herein             
          have been rejected as without merit.                                        

                                                       Decision will be               
                                                  entered for respondent.             







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  

Last modified: May 25, 2011