- 14 -
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
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011