Renard Halliburton - Page 6




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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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