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III. Substantial Understatement of Income in 1982
Section 6661 imposes an addition to tax of 10 percent of the
amount of any underpayment attributable to a substantial
understatement of income tax. A substantial understatement is
one which exceeds the greater of 10 percent of the tax required
to be shown on the return or $5,000. See sec. 6661(b)(1)(A).
If the taxpayer has substantial authority for the tax
treatment of any item on the return, the understatement is
reduced by the amount attributable to it. See sec.
6661(b)(2)(B)(i). Similarly, the amount of the understatement is
reduced for any item adequately disclosed either on the
taxpayer's return or in a statement attached to the return. See
sec. 6661(b)(2)(B)(ii).
Petitioner bears the burden of proving that the addition to
tax under section 6661 does not apply. See Rule 142(a);
Tweeddale v. Commissioner, 92 T.C. 501, 506 (1989). Petitioner
has offered no evidence or argument that he is not liable for the
addition to tax under section 6661(a). We conclude that
petitioner is liable for the section 6661(a) addition to tax for
1982.
IV. Statute of Limitations
Where a fraudulent return is filed with the intent to evade
tax, the tax may be assessed at any time. See sec. 6501(c).
Petitioner argues that respondent's assessment of deficiencies
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