- 30 -
As previously indicated, section 7491(c) places the burden
of production on the Commissioner. Here, respondent’s burden is
satisfied by the stipulation of the parties that petitioners’
1998 return was filed on January 7, 2000. This date is well over
the 5 months necessary to impose the maximum penalty. Since
petitioners have offered no explanation for the untimeliness,
either at trial or on brief, they have failed to establish any
reasonable cause. We therefore hold that petitioners are liable
for the section 6651(a)(1) delinquency addition to tax at the 25
percent rate.
To reflect the foregoing and concessions made,
Decision will be entered
for respondent.
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Last modified: May 25, 2011