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have failed to establish a timely request for a waiver, we cannot
hold that respondent abused his discretion to waive the addition
to tax for the valuation overstatement. See Haught v.
Commissioner, T.C. Memo. 1993-58. Further, petitioners concede
that there was an improper valuation, and there is nothing else
on the record before us to establish that there was a reasonable
basis for the valuation as required by section 6659(e). In light
of the stringent abuse of discretion standard, we cannot conclude
that respondent abused his discretion in failing to exercise the
authority under section 6659(e) to waive the section 6659
addition to tax.
In view of the foregoing, we sustain respondent's
determination that petitioners are liable for the section 6659
valuation overstatement addition to tax.
To reflect our disposition of the disputed issues,
Decision will be entered
for petitioners as to the additions to
tax under section 6653(a)(1) and (2)
and for respondent as to the addition
to tax under section 6659.
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Last modified: May 25, 2011