Leon and Belle Atkind - Page 17

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            amount is significant, even on petitioners' tax return.                                     
            Moreover, petitioner reported total tax of $97,751 for 1981, but                            
            reached that figure by claiming $39,604 in investment tax and                               
            business energy credits related to Hyannis and an operating loss                            
            of $20,326.  Consequently, we consider the trivialization                                   
            argument inappropriate and inaccurate.  Petitioners' tax benefits                           
            claimed with respect to Hyannis were not negligible--even for                               
                  Petitioners have not distinguished their situation from that                          
            of the taxpayers in Provizer v. Commissioner, supra, where the                              
            negligence additions to tax were upheld.  We hold, upon                                     
            consideration of the entire record, that petitioners are liable                             
            for the negligence additions to tax under the provisions of                                 
            section 6653(a)(1) and (2).  Respondent is sustained on this                                
            Issue 2.  Sec. 6659 Valuation Overstatement                                                 
                  Respondent determined that petitioners are liable for the                             
            section 6659 addition to tax for valuation overstatement on the                             
            portion of their 1981 underpayment attributable to the tax                                  
            benefits claimed with respect to Hyannis.  A graduated addition                             
            to tax is imposed when an individual has an underpayment of tax                             
            that equals or exceeds $1,000 and "is attributable to" a                                    
            valuation overstatement.  Sec. 6659(a), (d).  A valuation                                   
            overstatement exists if the fair market value (or adjusted basis)                           
            of property claimed on a return equals or exceeds 150 percent of                            
            the amount determined to be the correct amount.  Sec. 6659(c).                              

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