Charles Raymond Wheeler - Page 11

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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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