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taxable year or $5,000. Secs. 6661(b)(1)(A), 6662(d)(1)(A). In
determining whether there is a substantial understatement of tax
liability, the amount of an understatement is reduced by any
portion attributable to the tax treatment of an item for which
the taxpayer had substantial authority or by any item with
respect to which the relevant facts affecting the taxpayer's
treatment are adequately disclosed in the return or in a
statement attached to the return. Secs. 6661(b)(2)(B),
6662(d)(2)(B).
Petitioner bears the burden of proving that respondent's
determination of an addition to tax under section 6661 or
accuracy-related penalty under section 6662 is erroneous. See
Rule 142(a); Luman v. Commissioner, 79 T.C. 846, 860-861 (1982).
Petitioner also bears the burden of proving that he had
substantial authority for omitting an item from his return. See
Tippin v. Commissioner, 104 T.C. 518, 535 (1995). Petitioner has
failed to satisfy his burden of proving that respondent's
determination is erroneous. Accordingly, we sustain respondent's
determination that petitioner is liable for the addition to tax
prescribed by section 6661 with respect to his 1988 return, and
the accuracy-related penalties prescribed by section 6662 with
respect to his 1989, 1990, and 1991 returns.
Decision will be entered
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