-10-
1986), affg. T.C. Memo. 1984-601. However, respondent offered no
evidence that petitioner tried to mislead, conceal, or deceive
respondent. Mere unhelpfulness is not sufficient. Petitioner
has clearly been consumed with the Organization for many years,
and his testimony at trial was strong evidence that this
obsession, rather than an intention to deceive, was the cause of
petitioner’s failure to file timely returns. While his current
position is that he will not file returns or pay taxes unless his
demands are met, there is no evidence that petitioner had formed
this intention when he was required to file his returns for 1999
through 2003. Therefore, we find that respondent has failed to
carry his burden of proving fraud by clear and convincing
evidence.
Section 6651(a)(1) imposes an addition to tax if a taxpayer
fails to timely file a required Federal income tax return, unless
the taxpayer shows that the failure is due to reasonable cause
and not due to willful neglect. Section 7491(c) places the
burden of production on the Commissioner to present sufficient
evidence showing that the imposition of an addition to tax or
penalty on a taxpayer is appropriate. Higbee v. Commissioner,
116 T.C. 438, 446 (2001). If the Commissioner makes such a
showing, the burden of proof is on the taxpayer to raise any
issues that would negate the appropriateness of the penalty, such
as reasonable cause. Id.
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