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penalty under section 6662(a). Section 7491(c) places the burden
of production on respondent with respect to the liability of any
individual for any penalty, addition to tax, or additional amount
(penalties). Higbee v. Commissioner, 116 T.C. 438, 446 (2001).
To meet his burden of production, respondent must come forward
with sufficient evidence indicating that it is appropriate to
impose the relevant penalty. Id. The burden of proof remains on
the taxpayer with respect to issues such as reasonable cause or
substantial authority. Id.
Section 6651(a)(1) imposes an addition to tax for failure to
timely file a tax return, unless failure to do so is due to
reasonable cause and not willful neglect. The taxpayer must
prove both reasonable cause and lack of willful neglect. Crocker
v. Commissioner, 92 T.C. 899, 912 (1989). “Reasonable cause”
requires the taxpayer to demonstrate that he exercised ordinary
business care and prudence. United States v. Boyle, 469 U.S.
241, 246 (1985). Willful neglect is defined as a “conscious,
intentional failure or reckless indifference.” Id. at 245.
Petitioner admitted that he did not file a tax return for
taxable year 1997 until January 1999, when he received
correspondence from respondent requesting that he file a tax
return for 1997. Because petitioner did not file his 1997 tax
return until January 1999, respondent has satisfied his burden of
production with respect to the addition to tax under section
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Last modified: May 25, 2011