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more stringent than the reasonable basis standard”. Sec. 1.6662-
4(d)(2), Income Tax Regs.
Section 1.6662-4(d)(3)(i), Income Tax Regs., states that
substantial authority for a taxpayer’s treatment of an item
exists “only if the weight of the authorities supporting the
treatment is substantial in relation to the weight of authorities
supporting contrary treatment.”
With respect to the issue of whether petitioner may exclude
tax certificate interest under section 103(a), petitioner did not
have substantial authority to support such an exclusion. This
Court had issued a Memorandum Opinion directly on point, Barrow
v. Commissioner, T.C. Memo. 1983-123, long before petitioner
filed his income tax return for any of the tax years in question.
That Memorandum Opinion is substantial authority that directly
contradicts petitioner’s position. Sec. 1.6662-4(d)(3)(iii),
Income Tax Regs.
Petitioner stated in open court that he would show that our
opinion in Barrow v. Commissioner, supra, is wrong. He has
failed to do so. Indeed, he has cited no authority at all to
support his position, nor has he provided any persuasive
reasoning to support his assertions so as to invoke section
1.6662-4(d)(3)(ii), Income Tax Regs.
Petitioner did not cite any authority supporting his failure
to report additional tax certificate interest income in the tax
years in question, nor did he adduce any credible evidence that
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