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production under section 7491(c) is to produce evidence that it
is appropriate to impose the relevant addition to tax. Swain v.
Commissioner, 118 T.C. 358, 363 (2002). Unless the taxpayer puts
the addition to tax into play, however (by assigning error to the
Commissioner’s determination of an addition to tax), the
Commissioner need not produce evidence that the addition to tax
is appropriate, since the taxpayer is deemed to have conceded the
addition to tax. Id.
We can discern from the petition no assignment of error with
respect to the additions to tax other than with respect to their
calculation should we determine deficiencies different from those
respondent determined. Moreover, at the conclusion of the trial,
petitioner’s counsel as much as conceded that, if the Court were
to conclude that respondent had shown sources for the alleged
items of unreported income, the Court should sustain the
determinations of deficiencies and additions to tax. We could,
therefore, without further discussion, sustain the additions to
tax. Respondent, however, has introduced evidence sufficient to
show that it is appropriate to impose both the section 6651(a)(1)
and 6654 additions to tax. We shall sustain the additions to tax
on the basis of the evidence in the record.
C. Discussion
1. Section 6651(a)(1)
Respondent’s evidence shows that petitioner did not file a
Federal income tax return for either 1998 or 1999, and we so
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