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an underpayment, however, respondent cannot rely on a taxpayer's
failure to overcome the normal presumption of correctness
attributed to the notice of deficiency. Otsuki v. Commissioner,
53 T.C. 96, 106 (1969). In general, for purposes of section
6653(b), the term "underpayment" has the same meaning as the term
"deficiency," as that term is defined in section 6211(a). Sec.
6653(c)(1).
We find that respondent has satisfied this prong of her
burden with respect to taxable years 1980 through 1984.
Respondent, however, has not satisfied her burden with respect to
the existence of an underpayment for taxable years 1985 and 1986.
As to taxable years 1980 through 1983, petitioner's
stipulation that he failed to report gross income from interest
on the foreign bank accounts during those years establishes that
an underpayment exists with respect to each of those years. As
to taxable years 1984, 1985, and 1986, however, respondent has
conceded that petitioner is entitled to deductions for charitable
contributions in the amounts of $25,132.24, $64,982.70, and
$65,352.00, respectively. Accordingly, we address those years in
turn.
With respect to taxable year 1984, an underpayment of tax
exists because the amount of unreported interest income conceded
by petitioner exceeds the amount of the additional charitable
deduction conceded by respondent.
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