Footnotes

¹ Unless otherwise indicated, all statutory references are to the Internal Revenue Code, Title 26 U.S.C., in effect at all relevant times , and all Rule references are to the Tax Court Rules of Practice and Procedure. Served 04/03/23

² Respondent conceded the section 6662(a) substantial understatement penalty in a status report filed November 9, 2022, in response to the Court’s October 13, 2022, Order.

³ The parties did not address whether sec tion 6201(d) applies to this case. Under sec tion 6201(d), if a taxpayer asserts a reasonable dispute with respect to an item of income reported on an information return filed by a third party and the taxpayer meets certa in other requirements, the Commissioner bears the burden of producing reasonable and probative evidence, in addition to the information return, concerning the deficiency attributable to the income item. Assuming arguendo that respondent bears the burden of production under sec tion 6201(d), we find that respondent has satisfied it.

⁴ The invoice is dated December 19, 2018, and shows that the entire $34,077 balance was outstanding at that time. Mr. Ghaly did not produce receipts, bank statements, canceled che cks, or any other proof of paying the $34,077. In addition to the medical bill for $34,0 77, Mr. Ghaly produced various other medical bills , some for Laila Ryad and Adam Ghaly, which show petitioners made copayments of $10 to $25 for medical visits in 2018 . He also produced a letter from a law firm showing that he entered into a payment plan for an outstanding Hackensack University Medical Center medical bill, which showed that petitioners had made a $195 payment toward the bill.

⁵ The Internal Revenue Code provides a deduction for taxes paid on real property , but not an exception to the 10% penalty on early withdrawal for taxes paid on real property . See §§ 164, 72(t).