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method of accounting requiring him to report the $12,000 in a
period other than the period ending December 31, 2002.
Accordingly, the Court holds that petitioner was required to
report the $12,000 in 2002.
Respondent determined that petitioner is liable for
additions to tax under sections 6651(a)(1) and 6654(a).
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). To meet
his burden of production, respondent must come forward with
sufficient evidence indicating it is appropriate to impose the
additions to tax. Higbee v. Commissioner, supra at 446-447.
Section 6651(a)(1) imposes an addition to tax for failure to
file a return on the date prescribed (determined with regard to
any extension of time for filing), unless the taxpayer can
establish that such failure was due to reasonable cause and not
willful neglect. The parties stipulated that petitioner did not
timely file the 2002 return. Respondent has met his burden of
production. Petitioner did not show reasonable cause for failing
to timely file a return for 2002. Sec. 6651(a)(1). Therefore,
the Court holds that petitioner is liable for the section
6651(a)(1) addition to tax for 2002.
Section 6654(a) imposes an addition to tax on an individual
taxpayer who underpays his estimated tax. The addition to tax
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