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issue raised by petitioners with regard to imposition of the
section 6661 additions for both 1987 and 1988. Any applicable
section 6661 addition to tax can be computed pursuant to
Rule 155.
Petitioners argue that respondent should have exercised her
authority to waive the section 6661 additions to tax for 1987 and
1988 because "petitioners showed reasonable good-faith reliance
on their tax advisers and the positions at issue were, at the
very least, reasonable interpretations of the then-existing case
law and statutory regulatory authority on these issues."
Apparently, petitioners restrict that argument to the
depreciation deductions, which issue we have resolved favorably
to petitioners, and not to any items that may have been conceded
by petitioners. In any event, we do not believe that respondent
abused her discretion not to waive the addition to tax.
While the authority to waive the section 6661 addition to
tax rests with respondent, not with this Court, the denial of a
waiver by respondent is reviewable by the Court under a standard
of abuse of discretion. Mailman v. Commissioner, 91 T.C. 1079,
1084 (1988). Nevertheless, petitioners have not proven that
petitioners sought such a waiver prior to trial or that
petitioners provided to respondent any evidence regarding
reasonable cause or good faith to support a waiver. Petitioners
have not proven that respondent had any information prior to
trial that would have led her to consider waiving the section
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