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Generally, petitioner bears the burden of proof. See Rule
142(a). Section 7491 may shift the burden to the Commissioner in
certain circumstances, but petitioner does not contend, and has
not shown, that he has satisfied the prerequisites of section
7491. Accordingly, the burden remains with petitioner regarding
any determination of a tax liability.
The Commissioner bears the burden of production with respect
to any penalty or addition to tax. Sec. 7491(c). To meet this
burden, the Commissioner must come forward with sufficient
evidence indicating that it is appropriate to impose the relevant
penalty or addition to tax. Higbee v. Commissioner, 116 T.C.
438, 446 (2001).
With respect to both petitioner’s tax liability and the
additions thereon, the only evidence presented shows that
petitioner’s liability has been satisfied. Petitioner credibly
testified that he made timely payments of tax, penalties, and
interest in conformity with the payment arrangement to which he
had agreed. In addition, respondent’s records indicate that
petitioner was placed on an installment agreement on June 16,
2003, when he made his first payment, and respondent admitted at
trial that there was an agreement to extend the period in which
petitioner had to pay the tax liability.
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Last modified: May 25, 2011