Barbara Ann Tudyman - Page 37

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          Sec. 6661(b)(1)(A).  Petitioner bears the burden of proving                   
          that imposition of the addition to tax under section 6661 is                  
          erroneous.  Rule 142(a); Tweeddale v. Commissioner, 92 T.C. 501,              
          506 (1989).                                                                   
               If a taxpayer has substantial authority for the                          
          tax treatment of any item on the return, the understatement                   
          is reduced by the amount attributable to it.  Sec.                            
          6661(b)(2)(B)(i).  Similarly, the amount of the understatement                
          is reduced for any item adequately disclosed either on the                    
          taxpayer's return or in a statement attached to the return.                   
          Sec. 6661(b)(2)(B)(ii).  A taxpayer’s position may be adequately              
          disclosed either in a statement attached to the tax return, or                
          on the tax return itself.  Id.  Respondent contends that                      
          petitioner did not have substantial authority for her position                
          but does not deny that she adequately disclosed the casualty loss             
          on her 1985, 1986, and 1987 returns.  We consider whether                     
          petitioner adequately disclosed her position on her 1985, 1986,               
          and 1987 returns.                                                             
               Disclosure can be accomplished under section 6661 by                     
          providing sufficient information on the tax return to enable the              
          Commissioner to identify the potential controversy.  Schirmer v.              
          Commissioner, 89 T.C. 277, 285-286 (1987).                                    
               The Commissioner may promulgate revenue procedures which                 
          prescribe the circumstances in which information provided on a                

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Last modified: May 25, 2011