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a substantial understatement of tax with respect to the
SWI stock. See sec. 6662(b)(2).
Petitioners have not challenged respondent's deter-
mination of negligence with respect to the understatement
attributable to the gains from a transaction involving
Home Depot stock. Although the Stipulation of Settled
Issues states that petitioners concede underreporting the
gain as determined in respondent's notice of deficiency,
the stipulation is silent on the issue of the section
6662 penalty. At trial, petitioners' counsel informed
the Court that this issue had not been resolved.
Petitioners bear the burden of proving that they are
not liable for the penalty as determined by respondent.
Rule 142(a). Petitioners have not met this burden with
respect to the understatement attributable to the
transaction involving Home Depot stock. They introduced
no evidence disputing the section 6662 penalty, and
failed to raise any argument during trial or on brief as
to why the penalty is inapplicable. Accordingly, we
sustain respondent's determination that petitioners are
liable for the section 6662 penalty with respect to such
understatement.
In light of the foregoing, and to reflect
concessions and settled issues,
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