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3. Unreimbursed Business Expenses
Petitioner contends that he had $21,355 in unreimbursed
employee expenses in 2001. We disagree. Petitioner did not
offer any persuasive evidence showing that he may deduct any of
these amounts. There is no evidence that petitioner paid any
amounts for unreimbursed employee business expenses in 2001.
We conclude that petitioner may not deduct any amount for
unreimbursed employee business expenses in 2001, and we sustain
respondent’s determination of petitioner’s deficiencies for 1998,
2000, and 2001.
C. Whether Petitioner Is Liable for the Addition to Tax for
Failure To Timely File Under Section 6651(a)(1) for 1998,
and for the Accuracy-Related Penalty Under Section 6662(a)
for 1998, 1999, and 2000
Section 7491(c) places on the Commissioner the burden of
producing evidence that it is appropriate to impose a particular
addition to tax or penalty. To meet that burden, the
Commissioner need not produce evidence relating to defenses such
as reasonable cause or substantial authority. Higbee v.
Commissioner, 116 T.C. 438, 446 (2001); H. Conf. Rept. 105-599,
at 241 (1998), 1998-3 C.B. 747, 995.
Respondent has met the burden of production with respect to
the addition to tax for failure to timely file a return for 1998
by showing that petitioner and Mrs. Clark filed a joint 1998
return on November 19, 2000. Respondent has met the burden of
production with respect to the accuracy-related penalty under
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