Nasser and Shahpar Golshani - Page 10

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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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