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