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dispute that he received the amounts reflected in the third-party
payment reports (e.g., Form W-2 and Form 1099-MISC). Thus,
respondent has sufficiently connected petitioner to the
underlying activities relating to the unreported income. Parker
v. Commissioner, 117 F.3d 785, 787 (5th Cir. 1997)(when the
taxpayer does not dispute the receipt of unreported income,
respondent “has no duty to investigate a third-party payment
report”). As a result, respondent’s determinations are presumed
correct, and petitioner bears the burden of proof. Petitioner,
however, failed to present any credible evidence to counter
respondent’s determinations.2 Accordingly, we sustain the
deficiencies as determined by respondent.
Respondent also determined additions to tax for failure to
file tax returns, pursuant to section 6651(a)(1), and pay
estimated income tax, pursuant to section 6654(a). Respondent,
pursuant to section 7491(c), has met his burden of production
relating to both additions to tax. He established that
petitioner failed to file his 1998, 2000, and 2001 tax returns
and pay his 2001 estimated taxes. Niedringhaus v. Commissioner,
99 T.C. 202, 220-223 (1992). Petitioner’s failure to file was
not due to reasonable cause, and he does not meet any of the
exceptions to section 6654(a). Accordingly, we sustain the
2 Sec. 7491(a) is inapplicable because petitioner failed to
introduce credible evidence within the meaning of sec.
7491(a)(1).
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Last modified: May 25, 2011