- 8 - the years at issue. We have jurisdiction to consider whether a payment that should have been applied to reduce the outstanding liability for a year at issue was wrongly applied to a liability for another year. Freije v. Commissioner, 125 T.C. 14 (2005). Petitioner failed to introduce any evidence regarding the alleged installment agreement or its terms. If a party fails to introduce evidence within that party’s possession, we may presume that, if produced, the evidence would be unfavorable to that party. Wichita Terminal Elevator Co. v. Commissioner, 6 T.C. 1158, 1165 (1946), affd. 162 F.2d 513 (10th Cir. 1947). This is true where the party which does not produce the evidence has the burden of proof or the other party has established a prima facie case. Id. As noted supra, petitioner bears the burden of proof in the matter before us. Accordingly, we conclude that the evidence does not establish that respondent was required to apply petitioner’s $750 per month payments to his liabilities for the years at issue before applying them to his liabilities for other years. Petitioner also argued that respondent erred by failing to apply alleged overpayments for years prior to the years in issue to reduce petitioner’s liabilities for the years in issue. See Landry v. Commissioner, 116 T.C. 60 (2001). Petitioner, however, failed to make a timely claim for credit or refund with regard to the alleged overpayments. See sec. 6511; Landry v. Commissioner,Page: Previous 1 2 3 4 5 6 7 8 9 NextLast modified: November 10, 2007