Greta Ann Clifton - Page 25

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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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Last modified: May 25, 2011