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to examinations that are commenced after July 22, 1998. Internal
Revenue Service Restructuring and Reform Act of 1998, Pub. L.
105-206, sec. 3001(c), 112 Stat. 727. Section 7491(c) applies to
petitioners’ 1998 through 2000 tax years, since these tax years
ended after July 22, 1998. In the absence of any evidence
indicating when the examinations of the other tax years
commenced, we shall assume that section 7491(c) applies to all
tax years at issue.
A. Section 6651(a)(1) Additions to Tax
Section 6651(a)(1) provides an addition to tax for failure
to file a return on or before the specified filing date unless it
is shown that this failure is due to reasonable cause and not due
to willful neglect. Pursuant to section 7491(c), respondent must
show that the addition to tax is appropriate; however,
petitioners bear the burden of proving that their failure to file
was due to reasonable cause and not due to willful neglect. See
Higbee v. Commissioner, 116 T.C. 438 (2001).
Petitioners failed to file Federal income tax returns for
their 1995 through 2000 tax years, even though Mr. Rinn’s dental
practice produced substantial income.13 In prior years,
petitioners filed Federal income tax returns and included
13 As previously noted, we consider petitioners to have
conceded or waived any issue as to whether respondent properly
allocated to Mrs. Rinn a share of Mr. Rinn’s dental practice
income, as community property income.
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