Joel Rappaport - Page 12

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               Petitioner also contends that the fact that respondent had             
          JRC and RSC Forms 1120S and Schedules K-1 for 2001 when                     
          respondent issued the notice of deficiency causes the notice of             
          deficiency to be inadequate under section 7522(a).  Petitioner              
          gives no reason to support that contention.  We conclude that               
          petitioner’s reliance on section 7522(a) is misplaced.                      
               3.   Conclusion                                                        
               We conclude that petitioner bears the burden of proving he             
          is entitled to deductions he claimed on his late return, and that           
          he has not carried that burden.  Thus, he may not deduct expenses           
          that flowed through from JRC and RSC in 2001.                               
          C.   Whether Petitioner Is Liable for the Addition to Tax for               
               Failure To Timely File His 2001 Return                                 
               1.   Burden of Production                                              
               Section 7491(c) places on the Commissioner the burden of               
          producing evidence that a taxpayer is liable for an addition to             
          tax or penalty.  Respondent has met the burden of production                
          under section 7491(c) with respect to the addition to tax for               
          failure to timely file a return under section 6651(a)(1) by                 
          showing that petitioner filed his 2001 return on March 2, 2005.             
               2.   Whether Petitioner Had Reasonable Cause for Failure To            
                    Timely File His 2001 Return                                       
               Once the Commissioner meets the burden of production, the              
          taxpayer must, in order to not be found liable for the addition             
          to tax, produce evidence that the Commissioner’s determination is           

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