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stipulated by the parties. Petitioner failed to call any
witnesses on his behalf. Petitioner failed to carry his burden
of proof by a preponderance of the evidence that the amounts
underlying the notices of deficiency were not taxable to him.
VI. Additions to Tax
The Commissioner bears the burden of production in any court
proceeding arising from an examination begun after July 22, 1998,
with respect to an individual’s liability for penalties or
additions to tax. Sec. 7491(c). To meet this burden, the
Commissioner must come forward with sufficient evidence
indicating that it is appropriate to impose the relevant penalty
or addition to tax. Higbee v. Commissioner, 116 T.C. 438, 446
(2001). In instances where an exception to the penalty or
addition of tax is afforded upon a showing of reasonable cause,
the taxpayer bears the burden of showing such cause. Id. at 447.
A. Section 6651(a)(1)
Section 6651(a)(1) provides for a 5-percent addition to tax
for each month or portion thereof that the return is filed late,
not to exceed 25 percent in the aggregate, unless such failure to
file on time is due to reasonable cause and not due to willful
neglect. Although not defined in the Code, “reasonable cause” is
viewed in the applicable regulations as the “exercise of ordinary
business care and prudence”. Sec. 301.6651-1(c)(1), Proced. &
Admin. Regs; see also United States v. Boyle, 469 U.S. 241, 246
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