- 27 - 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 thatPage: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Next
Last modified: May 25, 2011