- 10 -
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.
Regs.
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
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011