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an approximation of an allowed amount of deductions could be made
under Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d Cir. 1930).
See Vanicek v. Commissioner, 85 T.C. 731, 743 (1985).
For the foregoing reasons, the Court finds petitioner failed
to prove he was entitled to Schedule C costs of goods sold and
deductions in an amount greater than allowed by respondent for
the years at issue.
E. Additions to Tax
Respondent determined additions to tax pursuant to: (1)
Section 6651(a)(1), for petitioner’s failure to file tax returns
for the years at issue; (2) section 6651(a)(2), for petitioner’s
failure to timely pay tax for 2000;10 and (3) section 6654, for
petitioner’s failure to pay estimated income tax for 2000.
Respondent bears the burden of production with respect to
petitioner’s liability for the additions to tax. Sec. 7491(c);
Higbee v. Commissioner, 116 T.C. 438, 446-447 (2001).
Respondent established that petitioner failed to file timely
Federal income tax returns for the years at issue. Respondent
also produced a substitute for return pursuant to section 6020(b)
establishing petitioner failed to pay timely Federal income tax
for 2000. See Millsap v. Commissioner, 91 T.C. 926, 930-931
(1988). Respondent’s section 6020(b) substitute for return for
10 Respondent did not seek sec. 6651(a)(2) additions to tax
for 1999 and 2001.
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