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4(b)(1), Income Tax Regs. Section 1.6664-4(b)(1), Income Tax
Regs., specifically states: “Circumstances that may indicate
reasonable cause and good faith include an honest
misunderstanding of fact or law that is reasonable in light of
* * * the experience, knowledge, and education of the taxpayer.”
Pursuant to section 7491(c), the Commissioner has the burden
of production with respect to a section 6662 accuracy-related
penalty. To meet this burden, the Commissioner must produce
sufficient evidence indicating that it is appropriate to impose
the relevant penalty. Higbee v. Commissioner, 116 T.C. 438, 446
(2001). Once the Commissioner meets this burden of production,
the taxpayer continues to have the burden of proof with regard to
whether the Commissioner’s determination of the penalty is
correct. Rule 142(a); Higbee v. Commissioner, supra. Further,
the taxpayer bears the burden of proving that he or she acted
with reasonable cause and in good faith. See sec. 6664(c)(1).
Respondent’s burden of production is satisfied in this case
since petitioner failed to maintain records to substantiate
expenses as required. Petitioner did not present any argument or
evidence that the reporting of the claimed mileage deductions was
based on reasonable cause or good faith. Petitioner did not
attempt to satisfy the record-keeping requirements for his
mileage expense deductions, nor did he attempt to reconstruct the
expense deductions at trial. We conclude that petitioner has
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