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and the investment tax credit claimed by that partnership for
1983. On January 7, 1988, an action was commenced in this Court
in Ridge Energy Systems, Nicholas J. and Sandra Coscia, A Partner
Other Than the Tax Matters Partner v. Commissioner, docket No.
413-88, contesting the adjustments made in the FPAA. On March
11, 1994, this Court entered a decision under Rule 248(b) sus-
taining respondent's disallowance of the deductions and the basis
for investment tax credit purposes reported by Ridge Energy in
its 1983 partnership return.
Respondent determined in the notice of deficiency (notice)
that petitioners are liable for 1983 for the additions to tax
under sections 6653(a)(1) and (2) and 6661(a). Respondent
imposed those additions to tax because of the underpayment in
petitioners' 1983 return that is attributable to the loss of
$13,919 and the investment tax credit of $20,899 with respect to
Ridge Energy that they claimed in that return.
OPINION
Petitioners bear the burden of proving that respondent's
determinations in the notice are erroneous. Rule 142(a); Welch
v. Helvering, 290 U.S. 111, 115 (1933).
Section 6653(a)(1) and (2)
Section 6653(a)(1) imposes an addition to tax equal to five
percent of the entire underpayment if any part of it is due to
negligence or intentional disregard of rules or regulations. If
that addition to tax is imposed, section 6653(a)(2) imposes a
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