James E. Hendricks and Roberta J. Hendricks - Page 10




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          liability for 1996 of $5,441.  However, their liability is                  
          $24,861.  Thus, respondent has satisfied the burden of production           
          under section 7491(c).                                                      
               We deem petitioners to have conceded that they are liable              
          for the accuracy-related penalty under section 6662(a) for                  
          substantial understatement of their 1996 income tax because they            
          make no argument about the penalty.  See Levin v. Commissioner,             
          87 T.C. 698, 722-723 (1986) (we deemed the taxpayers to have                
          abandoned claims in the petition for which they made no                     
          argument), affd. 832 F.2d 403 (7th Cir. 1987); Zimmerman v.                 
          Commissioner, 67 T.C. 94, 104 n.7 (1976) (we deemed the taxpayers           
          to have conceded an issue they raised in their petition because             
          they made no argument at trial or on brief relating to that                 
          issue).  We conclude that petitioners are liable for the                    
          accuracy-related penalty under section 6662(a) for substantial              
          understatement of income tax for 1996.                                      
               For the foregoing reasons,                                             


                                                       Decision will be               
                                                  entered for respondent.             













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