Joseph Tamberella - Page 8

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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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