Daniel C. McManus - Page 8

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          received unreported income, Edwards v. Commissioner, 680 F.2d               
          1268, 1270 (9th Cir. 1982); see Petzoldt v. Commissioner, 92 T.C.           
          661, 689 (1989).                                                            
               There is an evidentiary foundation connecting petitioner               
          with an income-producing activity.  The Court finds that                    
          petitioner was an insurance agent during the years at issue and             
          received commission income from insurance companies.                        
               Petitioner bears the burden of proving that respondent’s               
          determinations are incorrect.  See Rule 142(a).  Petitioner                 
          provided no evidence to dispute respondent’s determination of               
          petitioner’s receipt of income for the years at issue.                      
          Therefore, the Court concludes petitioner received taxable income           
          of $113,469 and $68,233 in 2001 and 2002, respectively.                     
          C.   Additions to Tax                                                       
               Pursuant to section 7491(c), the Commissioner has the burden           
          of production with respect to any penalty, addition to tax, or              
          additional amounts.  The burden of production requires the                  
          Commissioner only to come forward with sufficient evidence                  
          indicating it is appropriate to impose additions to tax.  Higbee            
          v. Commissioner, 116 T.C. 438, 446 (2001).                                  
               Petitioner did not file returns for the years at issue, and            
          he did not make estimated tax payments with respect to his tax              
          liabilities for those years.  There is no evidence that                     
          petitioner paid any tax for the years at issue.  Thus, respondent           






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