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petitioners provided for the cash contributions still at issue
were the lists, which were created by their tax accountant,
showing weekly payments to the church. Sharon Hardin admitted
that these were prepared because she did not have any other proof
at the time. Petitioners provided no testimony or documentation
regarding their deductions for noncash contributions.
We find that petitioners failed to provide reliable evidence
to prove that they made the charitable contributions still in
dispute. We hold that petitioners are not entitled to any
deductions for charitable contributions in excess of the amounts
conceded by respondent.
2. Section 6662(a)
With respect to the accuracy-related penalty under section
6662(a), the Commissioner has the burden of production. Sec.
7491(c). To prevail, the Commissioner must produce sufficient
evidence that it is appropriate to apply the penalty to the
taxpayer. Higbee v. Commissioner, 116 T.C. 438, 446 (2001).
Once the Commissioner meets his burden of production, the
taxpayer bears the burden of supplying sufficient evidence to
persuade the Court that the Commissioner’s determination is
incorrect. Id. at 447.
Section 6662(a) provides an accuracy-related penalty equal
to 20 percent of the underpayment required to be shown on a
return due to negligence or disregard of rules or regulations.
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Last modified: May 25, 2011