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taxpayer must establish that correct information was provided to
the accountant and that the item incorrectly claimed or reported
in the return was the result of the accountant's error. See Ma-
Tran Corp. v. Commissioner, 70 T.C. 158, 173 (1978).
Respondent determined that petitioner is liable for 1994 for
the accuracy-related penalty under section 6662(a) due to a
substantial understatement of income tax under section
6662(b)(2). Respondent determined that Mr. Henry's substantial
understatement of income tax for 1994 is attributable to the
disallowance of a $3,018 loss that he claimed in Schedule F of
that tax return and his failure to include in his tax return for
1994 the $1,623,203 settlement payment that he received from du
Pont during that year.
Petitioner makes no argument under 6662(a) with respect to
the accuracy-related penalty attributable to the disallowance of
the loss that he claimed in Schedule F of his 1994 tax return.
With respect to the accuracy-related penalty attributable to his
failure to include the $1,623,203 settlement payment as income in
that tax return, Mr. Henry asserts in his opening brief:
In regard to the penalties under IRC 6662, the
taxpayer has reasonable basis for his position. The is
substantial case law as set forth in this brief, the
law is changing in regard to exclusions under IRC 102
based on the U.S. Supreme Courts decision in Scheier
which was decided in 1995. In addition, the facts in
this situation is substantially close to the factual
situations in the cases cited. [Reproduced literally.]
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