Charles Mandeville - Page 12




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          VI.  Additions to Tax                                                       
          A.   Respondent’s Burden of Production                                      
               Under section 7491(c), respondent bears the burden of                  
          production with respect to a taxpayer’s liability for penalties             
          or additions to tax.  This means that respondent must “come                 
          forward with sufficient evidence indicating that it is                      
          appropriate to impose the relevant penalty.”  Higbee v.                     
          Commissioner, 116 T.C. 438, 446 (2001).  In instances where an              
          exception to the penalty or addition to tax is afforded upon a              
          showing of reasonable cause, the taxpayer bears the burden of               
          demonstrating such cause.  Id. at 446-447.                                  
          B.  Section 6651(a)(1) Addition to Tax                                      
               Section 6651(a)(1) imposes an addition to tax for failure to           
          file a timely return unless it is shown that such failure is due            
          to reasonable cause and not to willful neglect. “Reasonable                 
          cause” is described by the applicable regulations as the exercise           
          of “ordinary business care and prudence”.  Sec. 301.6651-1(c)(1),           
          Proced. & Admin. Regs.; see also United States v. Boyle, 469 U.S.           
          241, 246 (1985).  “[W]illful neglect” is interpreted as a                   
          “conscious, intentional failure or reckless indifference.”                  
          United States v. Boyle, supra at 245.                                       
               Here, respondent has met the burden of production because              
          the Court has found that petitioner failed to file a Federal                
          income tax return for 1998, 2000, 2001, 2002, and 2003.                     







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