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an accuracy-related penalty under section 6662. Respondent
issued a statutory notice of deficiency to petitioners for the
2001 taxable year on February 10, 2006, and petitioners timely
petitioned this Court for redetermination of respondent’s
determinations.
Discussion
In general, the Commissioner’s determinations set forth in a
notice of deficiency are presumed correct, and the taxpayer bears
the burden of proving that these determinations are in error.
Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Pursuant to section 7491(a), the burden of proof as to factual
matters shifts to the Commissioner under certain circumstances.
Petitioners have neither alleged that section 7491(a) applies nor
established their compliance with the requirements of section
7491(a)(2)(A) and (B) to substantiate items, maintain records,
and cooperate fully with respondent’s reasonable requests.
Petitioners therefore bear the burden of proof.
With respect to the section 6651(a)(1) addition to tax and
the section 6662 accuracy-related penalty, pursuant to section
7491(c), the Commissioner bears the burden of production. To
meet this burden, the Commissioner must produce sufficient
evidence showing that the imposition of the addition to tax and
the penalty is appropriate in a particular case. Higbee v.
Commissioner, 116 T.C. 438, 446 (2001).
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Last modified: March 27, 2008