- 17 - 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 them. 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. 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).Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
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