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due to reasonable cause and not willful neglect. Charlotte’s
Office Boutique, Inc. v. Commissioner, 121 T.C. 89, 109 (2003),
affd. 425 F.3d 1203 (9th Cir. 2005).
Under section 7491(c), respondent has the burden of
production with regard to additions to tax and must come forward
with sufficient evidence indicating that it is appropriate to
impose an addition to tax. Higbee v. Commissioner, 116 T.C. 438,
446 (2001). Because it is undisputed that petitioner filed no
employment tax returns and deposited no employment taxes with the
Treasury, respondent has carried the burden of production under
section 7491(c) with regard to the additions to tax under both
section 6651 and section 6656.
Petitioner claims that he had reasonable cause for failing
to file his returns and to deposit employment taxes due because
he relied upon his tax return preparer to prepare his tax returns
properly. However, petitioner has not established that he sought
specific advice from his return preparer regarding the legal
status of his workers for employment tax purposes or that he
provided his return preparer with all relevant information
regarding the nature of their employment. Also, petitioner did
not call his return preparer as a witness. Petitioner has not
established reasonable cause for his failure to file returns or
his failure to deposit, and respondent’s determinations with
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