- 8 -
(2) (Aug. 20, 1998) (whether mistake gives rise to reasonable
cause depends in part upon taxpayer's timely steps to correct the
failure after its discovery); cf. Elec. & Neon, Inc. v.
Commissioner, 56 T.C. 1324, 1342-1343 (1971) (lack of necessary
information not reasonable cause for 8-month delay in filing
where return preparers obtained information to complete, and did
complete, return 12 days after due date).
Under section 7491(c), the Commissioner bears the burden of
production with respect to a taxpayer's liability for any
addition to tax. To meet that burden, the Commissioner must
adduce "sufficient evidence indicating that it is appropriate to
impose the relevant penalty." Higbee v. Commissioner, 116 T.C.
438, 446 (2001). Once the Commissioner meets the initial burden
of production, the taxpayer bears the burden of proving that the
Commissioner's determination was incorrect; e.g., that the
taxpayer's failure to pay was due to reasonable cause and was not
due to willful neglect. Id. at 447.
Here, it is undisputed that the tax shown as due on
petitioner's return was $119,849, whereas the amount paid by the
April 16, 2001, due date of the return was $87,945.4 We
accordingly find that respondent has met his burden of production
under section 7491(c).
4 This figure consists of petitioner's two timely estimated
tax payments of $32,157 each, and the $23,631 payment
accompanying the return. See supra note 2.
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