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As of the date of trial, petitioner had not filed his 2000
Federal income tax return. A trial occurred on November 5, 2005.
Discussion
The Commissioner’s determinations are presumed correct, and
taxpayers generally bear the burden of proving otherwise. Welch
v. Helvering, 290 U.S. 111, 115 (1933). Section 7491(a),
however, places the burden of proof on the Commissioner with
respect to certain factual issues. Specifically, section
7491(a)(1) provides that if, in any court proceeding, the
taxpayer introduces credible evidence with respect to factual
issues relevant to ascertaining the taxpayer’s liability, the
burden of proof with respect to such factual issues will be
placed on the Commissioner. However, the taxpayer must comply
with the substantiation and record-keeping requirements of the
Internal Revenue Code. See sec. 7491(a)(2)(A) and (B). For
reasons discussed herein, we hold that petitioner did not meet
the requirements of section 7491(a)(2).
With respect to the addition to tax under section
6651(a)(1), the Commissioner bears the burden of production;
i.e., evidence that it is appropriate to apply the addition to
tax. Sec. 7491(c); Higbee v. Commissioner, 116 T.C. 438, 446-447
(2001). If the Commissioner meets the burden of production, the
taxpayer bears the burden of establishing that his failure to
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