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Partnerships on their Federal income tax returns for 1982. We
hold, upon consideration of the entire records, that petitioners
are liable for the negligence related additions to tax under the
provisions of section 6653(a)(1) and (2). Respondent is
sustained on this issue.
B. Section 6659--Valuation Overstatement
Respondent determined that petitioners are each liable for
the section 6659 addition to tax on the portion of their
respective underpayments attributable to valuation overstatement.
Petitioners Busch conceded the section 6659 addition to tax in
their stipulation of settled issues; Snyder did not. Snyder has
the burden of proving that respondent's determinations of the
section 6659 additions to tax for 1981 and 1982 are erroneous.
Rule 142(a); Luman v. Commissioner, 79 T.C. 846, 860-861 (1982).
A graduated addition to tax is imposed when an individual
has an underpayment of tax that equals or exceeds $1,000 and "is
attributable to" a valuation overstatement. Sec. 6659(a), (d).
A valuation overstatement exists if the fair market value (or
adjusted basis) of property claimed on a return equals or exceeds
150 percent of the amount determined to be the correct amount.
Sec. 6659(c). If the claimed valuation exceeds 250 percent of
the correct value, the addition is equal to 30 percent of the
underpayment. Sec. 6659(b).
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