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Commissioner, 268 F.3d 756 (9th Cir. 2001), affg. T.C. Memo.
1998-364; Kovacs v. Commissioner, 100 T.C. 124, 128 (1993), affd.
without published opinion 25 F.3d 1048 (6th Cir. 1994). Finally,
$6,059 of the $7,128 petitioner received in Social Security
benefits in 2001 is also gross income pursuant to section 86(a).
Petitioner may, however, deduct the attorney’s fees and
litigation costs incurred in his litigation against the FTB as a
miscellaneous itemized deduction.
II. Additions to Tax
Respondent determined that petitioner was liable for
additions to tax under sections 6651(a)(1) and 6654(a). Under
section 7491(c), the Commissioner has the burden of production in
any court proceeding with respect to the liability of any
individual for a penalty or addition to tax. Higbee v.
Commissioner, 116 T.C. 438, 446-447 (2001). In order to meet
this burden, the Commissioner must come forth with sufficient
evidence indicating that it is appropriate to impose an addition
to tax. Id. at 446. Once the Commissioner has met this burden,
the taxpayer must come forward with evidence sufficient to
persuade the Court that the Commissioner’s determination is
incorrect or an exception applies. Id. at 447.
Section 6651(a)(1) imposes an addition to tax for failure to
file a Federal income tax return by its due date, including
extensions. The addition equals 5 percent for each month that
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Last modified: November 10, 2007