William J. Fleischaker and Donni L. Fleischaker - Page 27

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          purpose, authorities include statutory and regulatory provisions,            
          legislative history, administrative interpretations of the                   
          Commissioner, and court decisions, but not conclusions reached in            
          treatises or legal periodicals.  See Booth v. Commissioner, 108              
          T.C. 524, 578 (1997); sec. 1.6662-4(d)(3)(iii), Income Tax Regs.             
               Petitioners' position is not supported by any well-reasoned             
          construction of the relevant statutory provisions.  The cases                
          petitioners have cited on brief are readily distinguishable and,             
          to the extent they are pertinent, undermine their position.                  
          Cases that are factually distinguishable are not substantial                 
          authority.  See Antonides v. Commissioner, 91 T.C. 686, 702-703              
          (1988), affd. 893 F.2d 656 (4th Cir. 1990); see also Estate of               
          Reinke v. Commissioner, 46 F.3d 760, 765 (8th Cir. 1995), affg.              
          T.C. Memo. 1993-197.  We have rejected the factual basis of                  
          petitioners' claim, and, thus, the authority they cite is not                
          relevant to the facts of this case and cannot constitute                     
          substantial authority.                                                       
               Petitioners assert that they adequately disclosed the tax               
          treatment of the attorney’s fees and guaranties.  The adequate               
          disclosure requirement can be satisfied by providing information             
          that "reasonably may be expected to apprise the Internal Revenue             
          Service of the identity of the item, its amount, and the nature              
          of the potential controversy".  Sec. 1.6661-4(b)(3), Income Tax              
          Regs.; see also Cramer v. Commissioner, 101 T.C. 225, 255 (1993),            

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