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(1) the underpayment rate established under section
6621,
(2) to the amount of the underpayment,
(3) for the period of the underpayment. [Sec.
6654(a).]
Unlike section 6651, the liability for the addition to tax
under section 6654 does not depend on a lack of reasonable cause
or the presence of willful neglect.
Petitioner has the burden of establishing that the additions
to tax should not apply. Rule 142(a). Petitioner essentially
contends that since respondent erroneously applied section 874(a)
to disallow the deductions, there is neither an "amount [of tax]
required to be shown", sec. 6651(a), nor an "underpayment of
estimated tax", sec. 6654(a). We have rejected that argument.
Applying section 874(a), statutory predicates for the additions
to tax are present. Furthermore, petitioner has not attempted to
establish that he satisfied the reasonable cause or lack of
willful neglect exceptions contained in section 6651(a)(1).
Accordingly, respondent's determinations as to the additions to
tax under sections 6651(a)(1) and 6654 are sustained.
To reflect respondent's concession concerning the basis of
the property sold,
Decision will be entered
under Rule 155.
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