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able prospect of recovery of the alleged custom house theft loss
(or any portion thereof).
Based upon our examination of the entire record before us,
we find that petitioner has failed to carry his burden of estab-
lishing that he is entitled to a deduction under section 165 for
taxable year 2000 with respect to the alleged custom house theft
loss (or any portion thereof).
We turn next to whether petitioner is liable for the addi-
tion to tax under section 6651(a)(1). Section 6651(a)(1) imposes
an addition to tax for failure to file a return on the date
prescribed for filing, unless petitioner proves that such failure
to file was due to reasonable cause, and not willful neglect.
Sec. 6651(a)(1); Higbee v. Commissioner, 116 T.C. at 447.
Respondent must carry the burden of production with respect
to the addition to tax under section 6651(a)(1). Sec. 7491(c);
Higbee v. Commissioner, supra at 446-447. To satisfy respon-
dent's burden of production, respondent must come forward with
"sufficient evidence indicating that it is appropriate to impose"
the addition to tax. Higbee v. Commissioner, supra at 446.
We have found that petitioner did not file a return for
taxable year 2000.10 In finding that petitioner did not file a
10We have also found (1) that petitioner did not file a
return for any of the taxable years 1995, 1996, 1997, 1998, and
1999 and (2) that Ms. Davis did not file a return for any of the
taxable years 1995, 1996, 1998, 1999, and 2000. Respondent
(continued...)
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