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Snyder's reliance on Mauerman v. Commissioner, supra, Krause
v. Commissioner, supra, and Rousseau v. United States, supra, in
support of his contention that he acted reasonably, is misplaced.
In the Krause and Rousseau cases, the section 6659 addition to
tax was held inapplicable in view of the respective holdings that
the taxpayers were not subject to the negligence additions to
tax; the taxpayers had a reasonable basis for the valuations
claimed on the tax returns or had reasonable cause for the
understatements on the returns. In contrast, we have held that
Snyder did not act reasonably in claiming deductions and
investment tax credits related to the Partnerships, that the
errors on his tax returns were caused by the excessive valuations
of the underlying machinery in the Partnership transactions, that
he lacked reasonable cause for such overvaluation, and that he is
therefore liable for the negligence additions to tax under
section 6653(a). Accordingly, Snyder's reliance on the Krause
and Rousseau cases is misplaced.
In Mauerman, the Tenth Circuit Court of Appeals held that
the Commissioner had abused her discretion by not waiving a
section 6661 addition to tax. Like section 6659, a section 6661
addition to tax may be waived by the Commissioner if the taxpayer
demonstrates that there was reasonable cause for his underpayment
and that he acted in good faith. Sec. 6661(c). The taxpayer in
Mauerman relied upon independent attorneys and accountants for
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