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Accordingly, the statute of limitations does not bar the
assessment of the deficiency at issue.
B. Addition to Tax
Pursuant to section 6651(a)(1), respondent determined that
petitioner is liable for an addition to tax. Section 6651(a)(1)
imposes an addition to tax for the failure to file a return
within the period of time prescribed (determined with regard to
any extension of time for filing), unless the taxpayer shows that
such failure was due to reasonable cause and not due to willful
neglect.
Section 7491(c) provides that the Commissioner will bear the
burden of production with respect to the liability of any
individual for additions to tax. “The Commissioner’s burden of
production under section 7491(c) is to produce evidence that it
is appropriate to impose the relevant penalty, addition to tax,
or additional amount”. Swain v. Commissioner, 118 T.C. 358, 363
(2002); see also Higbee v. Commissioner, 116 T.C. 438, 446
(2001). The Commissioner, however, does not have the burden to
introduce evidence regarding reasonable cause or substantial
authority. Id. at 446-447. Section 7491(c) applies to
examinations commenced after July 22, 1998.
Petitioner had an extension of time to file his return until
August 15, 1999. Petitioner did not file a return by August 15,
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