126 T.C. No. 8
UNITED STATES TAX COURT
NT, INC. d.b.a. NATURES TOUCH, Petitioner
v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 2725-05. Filed April 19, 2006.
On Feb. 14, 2005, P, a corporation, petitioned the
Court to redetermine R’s determination of Federal
income tax deficiencies, additions to tax under sec.
6651(a)(1), I.R.C., and accuracy-related penalties
under sec. 6662(a), I.R.C. Shortly thereafter, the
State in which P was organized suspended P’s corporate
powers, rights, and privileges for failing to pay State
income tax. R moves the Court to dismiss this case for
lack of prosecution to the extent that it relates to
deficiencies and to find without trial that P is liable
for the additions to tax and accuracy-related penalties
as determined. R asserts that P’s suspension precludes
it from prosecuting this case as to the deficiencies.
R asserts that he bears a burden of production under
sec. 7491(c), I.R.C., as to the additions to tax and
accuracy-related penalties, and that he has met this
Held: Pursuant to Rules 60(c) and 123(b), Tax
Court Rules of Practice and Procedure, the Court will
1 Unless otherwise indicated, section references are to the
Internal Revenue Code, and Rule references are to the Tax Court
Rules of Practice and Procedure.
dismiss this case in full in that applicable State law
precludes P from prosecuting any part of this case.
Although sec. 7491(c), I.R.C., generally places the
burden of production on R as to any addition to tax or
penalty at issue in this Court, that section is
inapplicable where, as here, the petitioning taxpayer
is a corporation.
James G. LeBloch, for petitioner.
Michael W. Berwind, for respondent.
LARO, Judge: On February 14, 2005, petitioner petitioned
the Court to redetermine respondent’s determination of
deficiencies of $68,990 and $46,465.20 in its Federal income
taxes for its taxable years ended October 31, 1998 and 1999,
respectively, additions to tax under section 6651(a)(1) of
$10,285.55 and $11,548.25,