- 26 -
Commissioner, 116 T.C. 438, 446 (2001). Rather, “it is the
taxpayer’s responsibility to raise those issues.” Id.
The notice of deficiency issued to petitioner determined
applicability of the section 6662(a) penalty for 1996 on account
of both negligence and/or substantial understatement.7 To the
extent that we have ruled in petitioner’s favor on the accounting
issue presented for decision, there can be no underpayment or
corresponding penalty attributable thereto.
However, petitioner also conceded several other adjustments
for 1996.8 The record is entirely devoid of any information
regarding the circumstances surrounding petitioner’s position on
these items, which include amounts claimed for beginning
inventory, cost of goods sold, legal and professional fees, and
depreciation. To the extent that these concessions result in an
underpayment, we conclude that respondent has satisfied his
burden under section 7491(c) of production of sufficient
evidence. At minimum, nothing suggests that these errors were
other than negligent. We also note that the threshold
7 The notice also referenced substantial valuation
misstatement as an additional alternative ground, see sec.
6662(b)(3), but since valuation was not a focus of this case, we
disregard the apparent boilerplate reference.
8 We note that the phrasing of and figures recited in the
parties’ stipulations concerning settled issues raise some
ambiguity regarding the precise nature of the settlement reached.
However, it is clear that petitioner made multiple concessions
and that the parties do not intend for the Court to address the
substantive matters covered by these stipulations.
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