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shall review respondent’s administrative determination sustaining
the Federal tax lien for abuse of discretion. See Downing v.
Commissioner, supra; Goodwin v. Commissioner, supra; Joye v.
Commissioner, supra.
Issue 1: De Novo Review of Section 6651 Additions to Tax
Respondent determined that petitioner is liable for
additions to tax pursuant to section 6651(a)(1) and (2) for 1998.
Section 6651(a)(1) imposes an addition to tax for failure to file
a return by the date prescribed (determined with regard to any
extension for time for filing). Section 6651(a)(2) imposes an
addition to tax for failure to pay the amount shown as tax on a
return by the date prescribed (determined with regard to any
extension for time for filing). If petitioner establishes that
the failure to timely file or pay is due to reasonable cause and
not due to willful neglect, he can avoid the additions to tax.
Sec. 6651(a)(1) and (2).
Section 7491(c) requires respondent to carry the burden of
production with respect to any addition to tax for failure to
file or pay. Higbee v. Commissioner, 116 T.C. 438, 446-447
(2001). To meet his burden of production, respondent must come
forward with sufficient evidence indicating that it is
appropriate to impose the additions to tax. Id. Once respondent
meets this burden, petitioner must come forward with evidence
sufficient to persuade the Court that respondent’s determination
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Last modified: May 25, 2011