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The Court finds that Mrs. Cooper did not engage in her
horse-barrel racing activities in 2001 with the primary objective
of making a profit and therefore sustains respondent’s
determination that petitioner is not entitled to deduct any
amount in excess of the income derived from Mrs. Cooper’s horse-
related activities.
B. Additions to Tax
1. Section 6651(a)(1) and (2)
Under section 7491(c), the Commissioner has the burden of
production in any court proceeding with respect to the liability
of any individual for any penalty or addition to tax. Higbee v.
Commissioner, 116 T.C. 438, 446-447 (2001). In order to meet his
burden of production, the Commissioner must come forward with
sufficient evidence indicating that it is appropriate to impose
the addition to tax in the particular case. Id. at 446. Once
the Commissioner meets his burden of production, the taxpayer
must come forward with evidence sufficient to persuade a court
that the Commissioner’s determination is incorrect. Id. at 447.
Respondent determined that petitioner is liable for
additions to tax for: (1) Failure to timely file a return for
taxable year 2001 pursuant to section 6651(a)(1); and (2) failure
to make timely payment of tax pursuant to section 6651(a)(2).
Section 6651(a)(1) imposes an addition to tax for failure to
timely file a tax return. The addition to tax is equal to 5
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