Bruce Selig and Elaine Selig - Page 19

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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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