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E. Penalty Under Section 6662 and Additions to Tax Under
Sections 6651(a)(1) and 6654
1. Burden of Proof
The Commissioner bears the initial burden of production with
respect to petitioner’s liability for additions to tax under
sections 6651(a)(1) and 6654(a) and penalties under section
6662(a). Sec. 7491(c); Rule 142(a); Higbee v. Commissioner, 116
T.C. 438, 446-447 (2001). To meet this burden, respondent must
come forward with sufficient evidence indicating it is
appropriate to impose the additions to tax and penalties. Higbee
v. Commissioner, supra at 446-447. Respondent’s burden may be
met by facts deemed admitted pursuant to Rule 37(c). Doncaster
v. Commissioner, 77 T.C. at 337; see Marshall v. Commissioner, 85
T.C. at 272-273. The taxpayer bears the burden of proof as to
any exception to the additions to tax or penalties. See sec.
7491(c); Rule 142(a); Higbee v. Commissioner, supra at 446-447.
2. Section 6662(a) Penalty for 2000
Having found that petitioner is not liable for a fraud
penalty for the year 2000, we consider respondent’s argument in
the alternative that petitioner is liable for an accuracy-related
penalty under section 6662. Section 6662(a) imposes a 20-percent
penalty on the portion of an underpayment attributable to, inter
alia, negligence or disregard of rules or regulations.
It was deemed admitted under Rule 37(c) that petitioner was
negligent and reckless in the preparation of his Form 1040, for
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