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II. Additions to Tax
A. Burdens of Proof and Production
Section 7491(c) provides that the Commissioner shall bear
the burden of production with respect to the liability of any
individual for additions to tax. To meet this burden of
production, the Commissioner must come forward with sufficient
evidence indicating that it is appropriate to impose this
addition to tax. Higbee v. Commissioner, 116 T.C. 438, 446
(2001). Once the Commissioner meets this burden of production,
the taxpayer must come forward with persuasive evidence that the
Commissioner’s determination is incorrect. Rule 142(a); see
Higbee v. Commissioner, supra.
With respect to the section 6651(a)(2) addition to tax,
respondent must introduce evidence that the tax was shown on a
Federal income tax return to satisfy his burden of production
under section 7491(c). Cabirac v. Commissioner, 120 T.C. 163
(2003). When a taxpayer has not filed a return, the section
6651(a)(2) addition to tax may not be imposed unless the
Secretary has prepared a substitute for return (SFR) that meets
the requirements of section 6020(b). Wheeler v. Commissioner,
127 T.C. 200 (2006).
At trial, the Court admitted a certified Form 4340,
Certificate of Assessments, Payments, and Other Specified
Matters, relating to petitioner’s 2003 tax year. The Form 4340
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Last modified: November 10, 2007