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required to be shown as tax on the return, and an additional 5
percent is imposed for each additional month or fraction thereof
during which the failure continues, but not to exceed 25 percent
in the aggregate. Sec. 6651(a)(1). This addition to tax may be
avoided only if the failure to file was due to reasonable cause
and not willful neglect. United States v. Boyle, 469 U.S. 241,
245-246 (1985).
Under section 7491(c), the Commissioner must come forward
with sufficient evidence to show that an addition to tax is
appropriate.9 Higbee v. Commissioner, 116 T.C. 438, 446 (2001).
However, the Commissioner does not bear the burden of proof as to
an addition to tax, and once the initial burden of production is
met, the taxpayer must come forward with sufficient evidence to
establish that the addition to tax does not apply. Id. at 447.
The parties stipulated that petitioner received compensation
for services and interest (which were of amounts sufficient to
require him to file Federal income tax returns), and that
petitioner did not file Federal income tax returns for 1996,
1997, 1998, and 1999. Thus, we find that respondent has met his
9Sec. 7491 is effective with respect to court proceedings
arising 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 evidence
in the record does not indicate when the examination commenced in
this case; however, the due dates, without extensions, for filing
petitioner’s returns for 1998 and 1999 were after July 22, 1998.
Accordingly, sec. 7491(c) is applicable to at least some of the
years in issue.
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