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Section 6653(a) and "new" section 6653(a)(1) have substantially
identical language and provide for an addition to tax equal to 5
percent of the underpayment. Respondent's erroneous citation
will not affect our previous determination that petitioner's
underpayments of tax for all the years in suit, including 1979
and 1980, were negligent. See Burrill v. Commissioner, 93 T.C.
643, 670 n.28 (1989).
The Application of the Section 6659 Addition to Tax for 1981
Petitioner alleges that respondent erred in determining an
addition to tax for the year 1981 under section 6659 because the
underpayment of tax for that year is less than $1,000, citing
section 6659(d).
The statutory language is clear. Subsection (d) of section
6659 provides that the section shall not apply if the
underpayment attributable to the valuation overstatement is less
than $1,000. Since petitioner's underpayment of tax for 1981 is
less than $1,000, we find that petitioner is not liable for an
addition to tax under section 6659.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011