- 11 - underpayment (i.e., one that exceeds $1,000) in any taxable year in which the understatement is "attributable to 1 or more tax motivated transactions". Petitioners bear the burden of proof as to this issue. See Rule 142(a); Boyd v. Commissioner, 101 T.C. 365, 373 (1993). In Seykota v. Commissioner, T.C. Memo. 1991-234, supplemented by T.C. Memo. 1991-541, we found that the FTI/Merit transactions were tax-motivated transactions within the meaning of section 6621(c). We again made the same finding with respect to the Merit T-bill and stock forward trades in Leema Enterprises, Inc. v. Commissioner, T.C. Memo. 1999-18. Petitioners have presented no evidence to show that these findings should not apply to them. Accordingly, the additional interest imposed by section 6621(c) is applicable to petitioners.5 3. Substantial Understatement of Tax Under Section 6661 Respondent has determined additions to tax under section 6661 for 1982. For returns due after December 31, 1982 (but before January 1, 1990), section 6661 provides for an addition to tax equal to 25 percent of the amount of any underpayment attributable to a substantial understatement. An understatement 5 The First Stipulation of Facts recites that some of the deficiencies at issue related to the Dorchester project, as opposed to the FTI/Merit programs. In a stipulation filed July 1, 1992, however, the parties agreed that petitioners were entitled to only 25 percent of the claimed deductions relating to the Dorchester project and, further, that any underpayments attributable to Dorchester transactions were attributable to "tax-motivated transactions" within the scope of sec. 6621(c).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
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