- 14 - amounts that should have been assessed as deficiencies related thereto, to reflect his recent finding that the aforementioned decisions increased petitioner’s income in the respective years only by $28,059 and $100,226.5 On October 25, 2004, respondent abated $1,369 and $23 of the assessed computational adjustments for 1989 and 1991, respectively, thus reducing the assessed amounts to $7,574 and $28,324, respectively. Those reductions led to respondent’s allegation in the answer that the accuracy- related penalties for 1989 and 1991 equal $3,029.60 and $5,664.80, respectively ($7,574 x .40 = $3,029.60; $28,324 x .20 = $5,664.80). OPINION 1. Burden of Production Petitioner argues that section 7491(c) applies to place upon respondent the burden of production as to the accuracy-related penalties.6 Section 7491(c) was added to the Code by the 5 The letters also explained that respondent was reducing petitioner’s self-employment tax for 1991 to reflect a correction made in the calculation of self-employment income. 6 Sec. 7491(c) provides: SEC. 7491(c). Penalties.--Notwithstanding any other provision of this title, the Secretary shall have the burden of production in any court proceeding with respect to the liability of any individual for any penalty, addition to tax, or additional amount imposed by this title. In order for the Commissioner to satisfy that burden of (continued...)Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: November 10, 2007