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to amended petitions out of time. Petitioner did not oppose
either the motions or the amended answers. The Court then
granted respondent’s motions for leave, and the amended answers
were filed reflecting recalculated and increased deficiencies and
additions to tax for the 2000 and 2001 taxable years. The
recalculated and increased deficiencies and additions to tax were
as follows: For petitioner’s 2000 taxable year, a Federal income
tax deficiency in the amount of $4,444 and additions to tax
pursuant to sections 6651(a)(1) and (2) and 6654(a) in the
amounts of $999.90, $1,111, and $239, respectively. For
petitioner’s 2001 taxable year, a Federal income tax deficiency
in the amount of $5,389 and additions to tax pursuant to sections
6651(a)(1) and (2) and 6654(a) in the amounts of $1,212.53,
$1,131.69,5 and $195, respectively.
Before trial, respondent filed a motion to consolidate these
cases, which the Court granted on March 2, 2007. A trial was
held on March 5, 2007, in Knoxville, Tennessee.
OPINION
I. Respondent’s Burden of Production
Under section 7491(c), respondent bears the burden of
production with respect to a taxpayer’s liability for penalties
or additions to tax. This means that respondent “must come
forward with sufficient evidence indicating that it is
5 See supra note 4.
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Last modified: November 10, 2007