- 12 -
tax involves a question of fact. United States v. Boyle, 469
U.S. 241, 249 n.8 (1985). A pending criminal investigation does
not constitute reasonable cause for failing to file a tax return
when due. Cooper v. United States, 834 F. Supp. 669, 673 (D.
N.J. 1993), affd. 9 F.3d 1539 (3d Cir. 1993).
Under section 7491(c), respondent has the burden of
production with respect to the section 6651(a)(1) addition to
tax. Higbee v. Commissioner, 116 T.C. 438, 446-447 (2001). To
meet his burden of production, respondent must come forward with
sufficient evidence indicating that it is appropriate to impose
the addition to tax. Id. Once respondent meets that burden of
production, however, the taxpayer continues to have the burden of
proof with regard to whether respondent’s determination of the
penalty is correct. Rule 142(a); Higbee v. Commissioner, supra.
Respondent has satisfied his burden of production by
establishing that petitioner was required to file a tax return
for 2001 and that petitioner did not file that return until June
of 2004.
Petitioner, at trial acknowledged that he knew that he was
required to file his 2001 Federal income tax return despite his
involvement in a criminal tax investigation. Petitioner is
liable for the section 6651(a)(1) addition to tax.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011