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to tax but need not produce evidence relating to defenses such as
reasonable cause or substantial authority. Higbee v.
Commissioner, 116 T.C. 438, 446 (2001); H. Conf. Rept. 105-599,
at 241 (1998), 1998-3 C.B. 747, 995.
Petitioner did not keep records or substantiate his
deductions. Respondent concedes that petitioner is not liable
for the accuracy-related penalty on that part of the underpayment
attributable to the disallowed dependency exemptions. Petitioner
is also not liable for the accuracy-related penalty on that part
of the underpayments for 1999 and 2000 attributable to the
disallowed earned income credit because petitioner did not claim
earned income credits for 1999 and 2000. Respondent allowed
petitioner earned income credits for those years. Thus,
respondent has met the burden of production, except with respect
to the penalty attributable to the disallowed dependency
exemptions for 1999 and the disallowed earned income credits for
1999 and 2000. Petitioner did not show that he acted with
reasonable cause or in good faith. We conclude that petitioner
is liable for the accuracy-related penalty for 1999 and 2000,
except that he is not liable for the accuracy-related penalty
attributable to the disallowed dependency exemptions for 1999 and
the disallowed earned income credits for 1999 and 2000.
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