- 8 -
based on impermissible considerations such as race, religion, or
other arbitrary classification, and absent contractual agreements
to the contrary, Estate of Campion v. Commissioner, 110 T.C. 165,
170 (1998), affd. without published opinion sub nom. Drake Oil
Tech. Partners v. Commissioner, 211 F.3d 1277 (10th Cir. 2000),
and Tucek v. Commissioner, 198 F.3d 259 (10th Cir. 1999); Norfolk
S. Corp. v. Commissioner, 104 T.C. 13, 58-59, supplemented by 104
T.C. 417 (1995), affd. 140 F.3d 240 (4th Cir. 1998); Davis v.
Commissioner, supra.
We conclude that petitioner is not entitled to business
deductions based on statistical information and that he was not
denied equal protection or due process of law because respondent
did not allow such deductions.
C. Additions to Tax
Section 7491(c) places on the Commissioner the burden of
producing evidence that it is appropriate to impose additions to
tax. To meet that burden, the Commissioner must produce evidence
showing that it is appropriate to impose the particular addition
to tax, but the Commissioner need not produce evidence relating
to defenses such as reasonable cause or substantial authority.
Higbee v. Commissioner, 116 T.C. 438, 446 (2001); H. Conf. Rept.
105-599, at 241 (1998), 1998-3 C.B. at 995. Respondent has met
the burden of production under section 7491(c) with respect to
the addition to tax for failure (1) to file under section
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