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however, to address these errors and to provide alternative
analyses. The errors do not invalidate respondent’s use of the
bank deposits method in these cases, which was necessitated by
petitioners’ failure to maintain adequate books and records for
themselves as well as for the corporations that they owned and
controlled. Petitioners’ vague assertions, unsupported by
corroborating records or documents, are not reliable or
persuasive. If documentation existed, it should have been
produced in response to discovery and/or exchanged with
respondent in accordance with the Court’s Standing Pretrial Order
and the Court’s Orders of August 14, 2003. Therefore, except to
the extent discussed above, respondent’s determinations of
petitioners’ income for the years in issue are sustained.
Additions to Tax and Accuracy-Related Penalties
Respondent determined an addition to tax under section
6651(a)(1) with respect to the Mansours for 1996 and with respect
to the Gownis for 1999 as a result of their failure to file
timely returns for those years. Petitioners have presented
neither evidence nor argument regarding the addition to tax.
The Commissioner has the burden of production under section
7491(c) and must come forward with sufficient evidence indicating
that it is appropriate to impose the penalty. Respondent has met
that burden of production in these cases by showing that the
returns were late. Respondent determined the addition to tax for
late filing for the Mansours because the Mansours’ 1996 return
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