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Substantial authority exists when the weight of authority
supporting the treatment of an item is substantial as compared to
the weight of authority for the contrary treatment. See sec.
1.6662-4(d)(3)(i), Income Tax Regs. In determining whether there
is substantial authority, all authorities relevant to the tax
treatment of an item, including those authorities pointing to a
contrary result, are taken into account. See id. For this
purpose, authorities include statutory and regulatory provisions,
legislative history, administrative interpretations by 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.
Adequate disclosure for purposes of section 6662 is made in
one of two ways. A disclosure is adequate either if the
disclosure is made on a properly completed form attached to the
taxpayer’s return, see sec. 1.6662-4(f)(1), Income Tax Regs., or
if the disclosure is permitted by annual revenue procedure to be
made on the tax return itself and is made in accordance with the
applicable forms and instructions, see sec. 1.6662-4(f)(2),
Income Tax Regs. If the annual revenue procedure does not permit
the disclosure of an item on the face of the return, disclosure
is adequate only if the disclosure is made on a properly
completed Form 8275, Disclosure Statement, or Form 8275-R,
Regulation Disclosure Statement, attached to the taxpayer’s
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