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amount "at or before the hearing or rehearing."
In the instant case respondent has not specifically addressed
the issue, and by the time of trial had not requested an increase
in the additions to tax under section 6653(a)(2). In these
circumstances we cannot conclude that respondent has asserted a
claim for the increased amount as required by section
6214(a), nor that the issue has been tried by consent of the
parties within the meaning of Rule 41(b)(1).
We conclude that so much of the underpayment for 1983 as is
attributable to changes in filing status and the self-employment
taxes is not subject to the addition to tax under section
6653(a)(2).
We hold for respondent on this issue, but limited as
described in the notice of deficiency.
C. Section 6661(a)
Section 6661(a)21 imposes an addition to tax of 25 percent of
21 SEC. 6661. SUBSTANTIAL UNDERSTATEMENT OF LIABILITY.
(a) Addition to Tax.--If there is a substantial
understatement of income tax for any taxable year, there
shall be added to the tax an amount equal to 25 percent of
the amount of any underpayment attributable to such
understatement.
Although the years before us on this issue are 1983 through
1985, we apply the statute as amended in 1986, because sec. 8002
(continued...)
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