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existence of DDR. Moreover, when petitioner was questioned at
trial about how much of the $63,850 he was paid from DDR, he was
evasive and responded: “I don’t have that information.”
Petitioner’s testimony was not credible. We conclude that he
received $63,850 for the services he rendered to McClain, and we
sustain the deficiencies as determined by respondent.
Respondent also determined additions to tax for failure to
file tax returns, pursuant to section 6651(a)(1); timely pay tax,
pursuant to section 6651(a)(2); and pay estimated income tax,
pursuant to section 6654(a). Respondent, pursuant to section
7491(c), has the burden of production relating to the additions
to tax.
Respondent established that petitioner failed to file a
return relating to 2002. In addition, respondent, at trial,
proffered an SFR that met the requirements of section 6020(b) and
established that petitioner failed to timely pay tax relating to
2002. See Wheeler v. Commissioner, 127 T.C. 200, 208-209 (2006).
Petitioner did not establish reasonable cause for the failure to
file or timely pay tax relating to 2002. Sec. 6651(a)(1) and
(2). Accordingly, we sustain the section 6651(a)(1) and (2)
additions to tax as determined by respondent.
In order to satisfy his burden of production relating to the
section 6654 addition to tax, respondent, at a minimum, must
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