Gary Benton Logsdon and Karen Ruth Logsdon - Page 14

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          (b)(2).  Respondent based the determination of the section                  
          6662(a) penalty on petitioners' underpayment being due to a                 
          substantial understatement.  See sec. 6662(b)(2).  Section                  
          6662(d)(1)(A) treats an understatement as substantial when it               
          exceeds the greater of $5,000 or 10 percent of the amount of tax            
          required to be shown on the return.  The understatement is                  
          reduced for purposes of section 6662(d)(1)(A) by that portion of            
          the understatement which is attributable to the tax treatment of            
          any item (1) if there is or was substantial authority for such              
          treatment or (2) if the relevant facts affecting the item's tax             
          treatment are adequately disclosed in the return or in a                    
          statement attached to the return.  Sec. 6662(d)(2)(B).                      
               To determine whether the treatment of any portion of an                
          understatement is supported by substantial authority, we must               
          consider whether the weight of authorities in support of the                
          taxpayer's position is substantial in relation to the weight of             
          authorities supporting contrary positions.  Norgaard v.                     
          Commissioner, 939 F.2d 874 (9th Cir. 1991), affg. in part and               
          revg. in part T.C. Memo. 1989-390; Antonides v. Commissioner, 91            
          T.C. 686, 702-703 (1988), affd. 893 F.2d 656 (4th Cir. 1990);               
          sec. 1.6662-4(d)(3), Income Tax Regs.                                       
               With respect to the penalty under section 6662, the burden             
          of proof is on petitioners.  Rule 142(a).  Petitioners do not               
          argue that they had substantial authority for their position.               
          Rather, they argue that the penalty should not apply because they           

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