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Petitioner has not met his burden of proving either that
petitioner and Peterson in fact had an agreement for the purchase
and sale of the property (as opposed to an option agreement) or
that in 2000 petitioner had acquired sufficient benefits and
burdens relating to the property to be deemed the equitable owner
of the property.
For 2000, petitioner is not entitled to deduct as mortgage
interest or as real property taxes the payments he made on the
property.
Additions to Tax
Under section 7491(c), the Commissioner has the burden of
production with respect to additions to tax. Once the
Commissioner meets that burden, the burden of proof shifts back
to the taxpayer with regard to additions to tax. Rule 142(a);
Higbee v. Commissioner, 116 T.C. 438, 446 (2001). Respondent has
established petitioner’s tax liability and therefore has
satisfied his burden of production under section 7491(c).
To defend against a section 6651 addition to tax for failure
timely to file a tax return, a taxpayer must establish both that
failure to timely file was not due to willful neglect and that it
was due to reasonable cause. United States v. Boyle, 469 U.S.
241, 245 (1985).
Willful neglect means conscious, intentional failure or
reckless indifference. Id. A failure to file will be regarded
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