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petitioner attempted to conceal his income, respondent’s counsel
stated: “No, Your Honor. I don’t contend that he tried to
conceal his income.” In addition, petitioner credibly testified
that he did not file returns relating to the years in issue
because he believed that the exemption amount, pursuant to
section 6012(a)(1)(A), is not defined by statute. Petitioner’s
belief is incorrect but appears to have been earnestly held.
Although petitioner failed to file returns, pay estimated taxes,
or maintain adequate books and records, respondent failed to
clearly and convincingly establish that petitioner had the
requisite intent to evade tax. Accordingly, we reject
respondent’s fraud determinations.
With respect to section 6651(a)(1) and 6654(a) additions to
tax, respondent met his burden of production, pursuant to section
7491(c), and established that petitioner failed to file his 1995
through 2001 returns and pay his 1996 through 2001 estimated
income taxes. See Higbee v. Commissioner, 116 T.C. 438, 446
(2001). Petitioner, however, failed to introduce sufficient facts
to establish the inapplicability of these additions to tax.
Accordingly, we sustain respondent’s determinations relating to
sections 6651(a)(1) and 6654(a) additions to tax.
At trial and in documents filed with the Court, petitioner
raised several groundless contentions. Pursuant to section
6673(a)(1), this Court is authorized to impose a penalty not to
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Last modified: May 25, 2011