- 21 -
filed in 1983, lists information that would be deemed sufficient
disclosure if listed on the return itself, without the necessity
of attaching an additional statement to the return. However,
none of the specific tax items referenced in Rev. Proc. 83-21,
supra, are relevant to the instant case. If disclosure is not
made in compliance with the regulations or the revenue procedure,
adequate disclosure on the return may still be satisfied if
sufficient information is provided to enable respondent to
identify the potential controversy involved. See Schirmer v.
Commissioner, 89 T.C. 277, 285-286 (1987). A mere claiming of
the loss, however, without further explanation, is not sufficient
to alert respondent to the controversial section 174 deduction of
which the partnership loss consisted. Petitioner has failed to
present evidence to show that the relevant facts pertaining to
his Utah I loss deduction were adequately disclosed on his 1982
return.11
Finally, section 6661(c) provides the Secretary with the
discretion to waive the section 6661(a) addition to tax if the
taxpayer shows he acted with reasonable cause and in good faith.
This Court reviews the Secretary’s failure to waive the addition
to tax for abuse of discretion. See Martin Ice Cream Co. v.
11 As noted earlier, even if an adequate disclosure had
been made on the return, such disclosure would not reduce the
amount of the understatement attributable to a tax shelter item.
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