John R. Hernandez - Page 29
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adequate disclosure for purposes of section 6662. The
Commissioner issued Rev. Proc. 91-19, 1991-1 C.B. 523, Rev. Proc.
92-23, 1992-1 C.B. 737, and Rev. Proc. 93-33, 1993-2 C.B. 470,
listing categories of items for which disclosure on the return
constitutes adequate disclosure for the 1990, 1991, and 1992 tax
years. None of these revenue procedures lists tax-exempt
interest income, which is at issue here.
A taxpayer may also satisfy the requirements for adequate
disclosure by providing sufficient information on the face of the
return that enables the Commissioner to identify the potential
controversy. Schirmer v. Commissioner, 89 T.C. 277, 285-286
(1987) (citing S. Rept. 97-494, at 274 (1982)); Elliott v.
Commissioner, T.C. Memo. 1997-294; Horwich v. Commissioner, T.C.
Memo. 1991-465. This method of disclosure requires more than a
production of a "clue" with respect to the nature of the
controversy. Horwich v. Commissioner, supra (citing Staff of the
Joint Comm. on Taxation, General Explanation of the Revenue
Provisions of the Tax Equity and Fiscal Responsibility Act of
1982, at 218 (J. Comm. Print 1982)).
In the case at hand, the controversy concerning the interest
income concerns whether tax certificates sold by a Florida county
tax collector were obligations of a State or political
subdivision thereof, making the interest paid thereon excludable
from income under section 103. Petitioner's reporting of
interest income on line 8b of his Form 1040 returns, entitled
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