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offered no evidence concerning any eligible dependents at trial,
he is not entitled to any deductions other than those allowed by
respondent. See sec. 151(b) and (c).
We therefore sustain the 2002 and 2003 deficiencies in tax
as calculated by respondent.
Additions to Tax
For both taxable years in issue, respondent also seeks
additions to tax for failure to file a return under section
6651(a)(1) and for failure to pay estimated tax under section
6654(a). Petitioner argues that he should not be held liable for
the additions to tax. Pursuant to section 7491(c), the
Commissioner has the burden of production as to whether a
taxpayer is liable for an addition to tax. To meet this burden
of production, the Commissioner must produce sufficient evidence
showing that imposition of the addition to tax is appropriate in
the particular case. Higbee v. Commissioner, 116 T.C. 438, 446
(2001). Once this burden of production is met, the taxpayer has
the burden of proof regarding reasonable cause. Id.
The parties stipulated that petitioner filed what he alleged
were valid returns containing only petitioner’s and his wife’s
names, address, Social Security numbers, and signatures and
indicating joint filing status. These purported returns did not
include any financial information and had the words “not liable”
written on them. Frivolous returns such as these are not valid
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Last modified: November 10, 2007