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1981, inasmuch as there was no timely filed return, the amount
shown on a timely filed return is zero, and the underpayment
equals the entire tax liability. Emmons v. Commissioner, 92 T.C.
342, 348-349 (1989), affd. 898 F.2d 50 (5th Cir. 1990). When an
underpayment is caused by the taxpayer's failure to file timely
an income tax return, such underpayment is due to negligence if
the taxpayer lacks reasonable cause for such failure. See id. at
349. The parties have also stipulated that petitioners lacked
reasonable cause for failing to file timely their 1980 and 1981
Federal income tax returns. Accordingly, normally, we would find
that the entire underpayment for each of those years is due to
negligence, and we would sustain respondent's additions to tax
under section 6653(a) for 1980 and under section 6653(a)(1) and
(2) for 1981. However, the parties have additionally stipulated
that petitioners "are not liable for additions to tax pursuant to
I.R.C. �� 6653(a)(1) and �6653(a)(2) as a result of * * *
[certain properly disallowed deductions] for their 1980, 1981, or
1982 taxable years". Also, respondent has determined the
interest-sensitive addition to tax with regard to only a portion
of the 1981 underpayment. We are at a loss to reconcile the
stipulations respondent has joined, her determination of the
interest-sensitive addition for 1981, and the rule of Emmons v.
Commissioner, supra at 348-349. We assume that respondent has
chosen not to rely on Emmons for 1980 and 1981. We will treat
respondent as having made a concession to that extent.
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