David E. Christensen - Page 10

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          respondent’s determination disallowing Schedule A deductions of             
          $873, $864, and $765, in 1999, 2000, and 2001, respectively.                
          C.   Penalties and Additions to Tax                                         
               1.   Section 6651(a)(1)                                                
               Pursuant to section 7491(c), respondent has the burden of              
          production with respect to any penalty, addition to tax, or                 
          additional amounts.  The burden of production only requires                 
          respondent to come forward with sufficient evidence indicating it           
          is appropriate to impose additions to tax.  Higbee v.                       
          Commissioner, 116 T.C. 438, 446 (2001).  In this case, respondent           
          has carried the requisite burden of production with respect to              
          the additions to tax under section 6651(a)(1).                              
               Section 6651(a)(1) imposes an addition to tax for failure to           
          file a required return on or before the prescribed filing date,             
          unless it is shown that such failure is due to reasonable cause             
          and not due to willful neglect.  A showing of reasonable cause              
          requires the taxpayer to demonstrate he exercised ordinary                  
          business care and prudence and nevertheless was unable to file              
          the return by the due date.  Sec. 301.6651-1(c), Proced. & Admin.           
               Petitioner did not file a return for 1997, and he did not              
          timely file his 1998, 1999, 2000, and 2001 tax returns.                     
          Petitioner did not offer a legitimate explanation for these                 
          failures.  Thus, petitioner is liable for additions to tax for              

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