Richard L. Clark - Page 7
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During his testimony, petitioner admitted that he received
income from three trucking companies, from Farmers and Merchants
Bank, and from Prime America Shareholder Services. He was not
asked about other income listed in the statutory notices as paid
to petitioner and to Felicia Clark in each year from Rural
Housing Service for mortgage interest or paid to Richard L.
Clark/Lizzie M. Clark during 2001 by the Social Security
Administration. We conclude that petitioner’s testimony is
sufficiently probative to sustain the portions of the
deficiencies based on the income from the sources that he
admitted, but not sufficient with respect to items for which
there is no explanation in the record.
Respondent also has the burden of production under section
7491(c) with respect to the additions to tax. Respondent
introduced a certified transcript establishing petitioner’s
failure to file returns for 2001 or 2002. Thus, respondent’s
burden has been met with respect to the additions to tax under
section 6651(a)(1), subject to correct mathematical
determination, but respondent failed to meet that burden with
respect to section 6654. See Wheeler v. Commissioner, 127 T.C.
200, 207-212 (2006).
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: November 10, 2007