Albert R. Matthews - Page 15

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          return was due to “reasonable cause and not due to willful                  
          neglect”.  Sec. 6651(a)(1).                                                 
               Under section 7491(c), the Commissioner bears the burden of            
          production with regard to whether any penalty or addition to tax            
          is appropriate, but he does not bear the burden of proof with               
          regard to the “reasonable cause” exception of section 6651(a).              
          Higbee v. Commissioner, 116 T.C. 438, 447 (2001).  Petitioner’s             
          tax returns for 1997, 1998, and 1999 are part of the record, and            
          the filing dates of the returns were stipulated.  In the notice             
          of deficiency, respondent sets forth the following:  (1) For                
          1997, petitioner’s return was due on August 15, 1998, and was               
          filed on July 7, 1999, approximately 11 months after its due                
          date; (2) for 1998, petitioner’s return was due on August 15,               
          1999, and was filed on August 23, 2000, approximately 12 months             
          after its due date; and (3) for 1999, petitioner’s return was due           
          on October 15, 2000, and was received on December 26, 2000,                 
          approximately 2 months after its due date.  The stipulation of              
          facts and the stipulated tax returns are consistent with these              
          statements in the notice of deficiency.  On the basis of this               
          record, we conclude that respondent has satisfied the burden of             
          production in regard to whether the additions to tax under                  
          section 6651(a)(1) are appropriate.                                         
               Because respondent met his burden of production, petitioner            
          is liable for the additions to tax unless he can show his failure           






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