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a prospect of recovery existed. Colish v.
Commissioner, supra at 717; Estate of Fuchs v.
Commissioner, supra at 508.
Whether petitioners claimed the losses in 1991, as argued in
the motion to dismiss, or in 1995 as it appears in this record,
we conclude that the losses occurred at a date well before that
time. Respondent’s determination is sustained as to the
deficiency.
Addition to Tax for Failure To File Timely Under Section 6651(a)
The Commissioner has the “burden of production in any court
proceeding with respect to the liability of any individual for
any * * * addition to tax” under section 6651(a). Sec. 7491(c).
To meet this burden, the Commissioner must come forward with
sufficient evidence indicating that it is appropriate to impose
the relevant penalty or addition to tax. Higbee v. Commissioner,
116 T.C. 438, 446 (2001). Once the Commissioner meets his burden
of production, the taxpayer must come forward with evidence
sufficient to persuade a court that the Commissioner’s
determination is incorrect. Id. at 447. The taxpayer also bears
the burden of proof with regard to issues of reasonable cause,
substantial authority, or similar provisions. Id. at 446.
In the present case, respondent has satisfied his burden of
production under section 7491(c) by establishing that
petitioners’ 1999 income tax return was not timely filed. In
this connection petitioners do not assert, nor did they present
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