Betty J. Shackelford - Page 28

                                         - 28 -                                       
          part 43 T.C. 168 (1964); Neely v. Commissioner, 85 T.C. 934, 947            
          (1985).                                                                     
               There is a substantial understatement of income tax if the             
          amount of the understatement for the taxable year exceeds the               
          greater of 10 percent of the amount required to be shown on the tax         
          return, or $5,000.  Sec. 6662(d)(1)(A).  The amount of the                  
          understatement is reduced, however, if there was substantial                
          authority for the taxpayer's treatment of the item.  Sec.                   
          6662(d)(2)(B).  In order to satisfy the substantial authority               
          standard, petitioner must show that the weight of authorities               
          supporting her position is substantial in relation to those                 
          supporting a contrary position.  Antonides v. Commissioner, 91 T.C.         
          686, 702 (1988), affd. 893 F.2d 656 (4th Cir. 1990); sec. 1.6661-           
          3(b)(1), Income Tax Regs.                                                   
               Petitioner has the burden of proving that respondent's                 
          determination of the accuracy-related penalty is in error.  Rule            
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).  Petitioner           
          conceded that she is liable for the accuracy-related penalty with           
          respect to those items that she conceded at or before trial and on          
          brief.  With respect to those items still in issue, petitioner              
          simply claims that her positions were supported by substantial              
          authorities.  However, petitioner provided no evidence to show that         
          she was not negligent, and she pointed to no authorities to support         
          her position and bring her within the exception to the definition           
          of substantial understatement.  Accordingly, we sustain                     




Page:  Previous  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  Next

Last modified: May 25, 2011