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Petitioner was not credible. His testimony was questionable
in certain material respects, and under the circumstances
presented here, we are not required to, and generally do not,
rely on petitioner’s testimony to sustain his burden of
establishing error in respondent’s determinations. See Lerch v.
Commissioner, 877 F.2d 624, 631-632 (7th Cir. 1989), affg. T.C.
Memo. 1987-295; Geiger v. Commissioner, 440 F.2d 688, 689-690
(9th Cir. 1971), affg. per curiam T.C. Memo. 1969-159; Tokarski
v. Commissioner, supra at 77. Accordingly, we sustain
respondent’s determination regarding the unreported income for
all the years.
C. Additions to Tax
Section 7491(c) requires that respondent bear the burden of
production regarding additions to tax. To meet this burden,
respondent must present evidence indicating that it is
appropriate to impose the addition to tax. See Higbee v.
Commissioner, 116 T.C. 438, 446 (2001).
Section 6651(a)(1) imposes an addition to tax for failure to
file a return on the date prescribed (determined with regard to
any extension of time for filing), unless the taxpayer can
establish that such failure is due to reasonable cause and not
due to willful neglect. Petitioner admitted he did not file tax
returns for 1998, 1999, 2000, and 2001. Thus, respondent
satisfied his burden of production.
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