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rental, and partnership income and was liable for the section
6651(a)(1) addition to tax for failure to file a return and
section 6662(a) accuracy-related penalty.
On January 31, 2005, petitioner, while residing in
Chillicothe, Ohio, filed his petition with this Court.
Discussion
Respondent bears, and has met, the burden of production
relating to the section 6651(a)(1) addition to tax and has
established that petitioner failed to file his return on time.
Sec. 7491(c); Higbee v. Commissioner, 116 T.C. 438, 446 (2001).
Petitioner failed to establish, pursuant to section 6651(a)(1),
that such failure was due to reasonable cause and not willful
neglect. Accordingly, we sustain respondent’s determination.
Respondent also bears the burden of production relating to
the section 6662(a) accuracy-related penalty. Sec. 7491(c); Rule
142(a). Section 6662(a) imposes a penalty equal to 20 percent of
the amount of any underpayment attributable to a substantial
understatement of income tax. Sec. 6662(b)(2). An
understatement is the amount by which the correct tax exceeds the
tax reported on the return. Sec. 6662(d). The understatement is
substantial if it exceeds the greater of $5,000 or 10 percent of
the tax required to be shown on the return. Sec.
6662(d)(1)(A)(i) and (ii). Respondent conceded that petitioner
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