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the burden of production, the taxpayer must, in order to not be
found liable for the addition to tax, produce evidence sufficient
to show that the Commissioner’s determination is incorrect.
Higbee v. Commissioner, supra at 447. Respondent has met the
burden of production under section 7491(c) with respect to the
addition to tax for failure to file under section 6651(a)(1).
2. Whether Petitioner Is Liable for the Addition to Tax
Under Section 6651(a)(1) for Failure To File
Section 6651(a)(1) imposes an addition to tax for failure to
file a tax return unless the taxpayer shows that the failure was
due to reasonable cause and not willful neglect. United States
v. Boyle, 469 U.S. 241, 245 (1985). Reasonable cause may exist
if the taxpayer exercised ordinary business care and prudence but
nevertheless could not file the return within the prescribed
time. Id. at 246; Bank of the West v. Commissioner, 93 T.C. 462,
471 (1989).
a. Incapacity or Illness
Petitioner contends that he lacked the mental capacity to
file a 2000 return. Petitioner testified that he could not work
at IBM or cope with IRS problems after he began to show symptoms
of posttraumatic shock syndrome around 1992. He testified that
he had a therapist but offered no other evidence relating to his
mental health.
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Last modified: May 25, 2011