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Commissioner's determination as to the addition to tax under
section 6661(a) is erroneous. Rule 142(a).
An understatement is substantial where it exceeds the
greater of 10 percent of the tax required to be shown on the
return or $5,000. Sec. 6661(b)(1)(A). An understatement is the
difference between the amount required to be shown on the return
and the amount actually shown on the return. Sec. 6661(b)(2);
Tweeddale v. Commissioner, 92 T.C. 501 (1989); Woods v.
Commissioner, 91 T.C. 88 (1988). The section 6661 addition to
tax is not applicable, however, if there was substantial
authority for the taxpayer's treatment of the items in issue or
if relevant facts relating to the tax treatment of those items
were disclosed on the return. Sec. 6661(b)(2)(B)(i) and (ii).
Petitioner has not argued that either exception applies
here, nor has she presented any evidence which would invoke
either exception. Accordingly, petitioner has failed to sustain
her burden of proof. Therefore, if the recomputed deficiency
under Rule 155 satisfies the statutory percentage or amount,
petitioner will be liable for that addition to tax.
Finally, petitioner asserts that her constitutional rights
have been violated. We see no need to catalog petitioner's
contentions and painstakingly address them, as they are without
merit. As the Court of Appeals for the Fifth Circuit has
remarked: "We perceive no need to refute these arguments with
somber reasoning and copious citation of precedent; to do so
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