- 24 -
T.C. 934, 947 (1985) (quoting Marcello v. Commissioner, 380 F.2d
499, 506 (5th Cir. 1967), affg. in part and remanding in part 43
T.C. 168 (1964) and T.C. Memo. 1964-299). The taxpayer has the
burden of proving that the Commissioner's determination of the
additions to tax under section 6653(a) is erroneous. Rule
142(a); Bixby v. Commissioner, 58 T.C. 757 (1972).
Petitioner has not presented evidence to establish that she
was not negligent or did not disregard rules or regulations.
Accordingly, we sustain respondent's determination.
Issue 7. Substantial Understatement
Respondent determined that petitioner was liable for the
addition to tax for substantial understatement under section
6661(a).
Section 6661(a) imposes an addition to tax on a substantial
understatement of income tax. The section provides that if there
is a substantial understatement of income tax, there shall be
added to the tax an amount equal to 25 percent of the amount of
any underpayment attributable to such understatement. Sec.
6661(a).6 The taxpayer bears the burden of proving that the
6 Sec. 6661, as originally enacted in 1982, set the amount of
the addition at 10 percent of the amount of any underpayment
attributable to the substantial understatement. Sec. 8002 of the
Omnibus Budget Reconciliation Act of 1986, Pub. L. 99-509, 100
Stat. 1874, 1951, amended sec. 6661(a) to increase the amount of
the addition to 25 percent for additions assessed after October
21, 1986. See Pallottini v. Commissioner, 90 T.C. 498, 501-502
(1988). Since the addition will not be assessed until the
Court's decision is final, the 25-percent rate applies. Kim v.
Commissioner, T.C. Memo. 1991-288.
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