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section 6659 addition to tax was disallowed in light of the
respective holdings that the taxpayers in each case had a
reasonable basis for the valuations claimed on the tax returns or
had reasonable cause for the understatements on the returns and
were not subject to negligence additions to tax. In contrast, we
have held that petitioners herein did not act reasonably in
claiming deductions and investment tax credits related to the
Partnerships, that the errors on petitioners' tax returns were
caused by the excessive valuations of the underlying machinery in
the Partnership transactions, that petitioners lacked reasonable
cause for such overvaluation, and that each petitioner is
therefore liable for the negligence additions to tax under
section 6653(a). See supra pp. 20-40. Accordingly, petitioners'
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 for 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
advice as to whether payments were properly deductible or
capitalized. The advice relied upon by the taxpayer in Mauerman
was within the scope of the advisers' expertise, the
interpretation of the tax laws as applied to undisputed facts.
In these cases, particularly with respect to valuation,
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