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various attorneys and others in structuring certain aspects of
the activities. Nevertheless, he has not convinced us that he
exposed the whole of each activity to a qualified expert and
obtained a reasonable opinion, or any other opinion, as to
whether petitioner was at risk within the meaning of section
465(a). For each of the years in question, we find that
petitioners were negligent in claiming the losses they did from
the activities.
Accordingly, for 1980, we uphold respondent's determination
of an addition to tax pursuant to section 6653(a) and, for 1981
through 1983, we uphold respondent's determination of an addition
to tax pursuant to section 6653(a)(1). Also for 1981 through
1983, we uphold respondent's determinations of additions to tax
pursuant to section 6653(a)(2), except to the extent that such
additions relate to the parties' stipulation that petitioners are
not liable for additions to tax pursuant to that section with
respect to certain portions of the underpayments.
B. Substantial Understatement of Income Tax Liability
Respondent has determined additions to tax under section
6661 for 1982 and 1983. Section 6661(a) provides for an addition
to the tax for any year for which there is a substantial
understatement of income tax. A substantial understatement is
defined as an understatement which exceeds the greater of
10 percent of the tax required to be shown on the return for the
year or $5,000. Sec. 6661(b)(1)(A). The amount of the addition
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