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Commissioner, 110 T.C. 189, 235 (1998). Petitioner argues that
he acted in good faith and reasonably relied upon the advice of
Mr. Salgo and Dr. Stephan in claiming the relevant loss.
However, nothing in the record indicates that petitioner
requested a waiver for good faith and reasonable cause under
section 6661(c). In the absence of such a request, this Court
cannot review respondent’s determination for an abuse of
discretion. See id. In any event, petitioner has not shown that
he met the tests of reasonable cause and good faith.
Petitioner has failed to prove that he had substantial
authority for his treatment of the partnership loss and that he
adequately disclosed the relevant facts of that treatment. The
understatement upon which the addition to tax was imposed was
$10,459. The understatement is substantial because it exceeds
the greater of $5,000 or 10 percent of the amount required to be
shown on the return.12 On this record, the Court holds that
petitioner is liable for the addition to tax under section
6661(a) for a substantial understatement of tax for 1982.
Respondent is sustained on this issue.
12 The amount required to be shown on the return was
$40,915, 10 percent of which equals $4,091.50.
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