- 72 -
of section 6653(a), the evidence before us on that issue was not
completely uncontroverted, especially in light of petitioner’s failure
to disclose the split-off on its 1988 income tax return. We therefore
cannot say that reasonable cause and good faith were so clear that any
refusal by respondent to waive the addition to tax would have amounted
to an abuse of discretion as being without sound basis in fact. See,
e.g., Vandeyacht v. Commissioner, T.C. Memo. 1994-148; Klavan v.
Commissioner, T.C. Memo. 1993-299.
Accordingly, we sustain respondent’s determination that
petitioner is liable for the section 6661(a) addition to tax on the
underpayment.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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