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Respondent issued a so-called affected items notice of
deficiency for the taxable year 1982. In the notice, respondent
determined that petitioners were liable for (1) additions to tax
for negligence under section 6653(a)(1) and (a)(2) in the amounts
of $492 and 50 percent of the interest due on $9,835,
respectively, and (2) an addition to tax for valuation
overstatement under section 6659 in the amount of $2,436.
After concessions by petitioners,2 the issues for decision
are as follows:
(1) Whether petitioners are liable for additions to tax for
negligence or intentional disregard of rules or regulations under
section 6653(a)(1) and (2). We hold that they are not.
(2) Whether petitioners are liable for the addition to tax
for underpayment of tax attributable to valuation overstatement
under section 6659. We hold that they are.
FINDINGS OF FACT
Some of the facts have been stipulated, and they are so
found. Petitioners resided in Toms River, New Jersey, at the
time that their petition was filed with the Court.
During the year in issue, petitioners were both 55 years
old. During the preceding 30 years, petitioner husband (Mr.
2 Petitioners concede that partnership assets valued at
$1,750,000 did not have a value exceeding $50,000. Further,
petitioners raised a statute of limitations issue in their
petition, but petitioners appear to have abandoned that issue.
Nevertheless, we observe that the notice of deficiency was timely
issued. See sec. 6229(d), (g).
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