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of (1) 10 percent of the tax required to be shown on the return
or (2) $5,000. The understatement is reduced to the extent that
the taxpayer (1) has substantial authority for the tax treatment
of an item or (2) has adequately disclosed his or her position.
Sec. 6661(b)(2)(B)(i) and (ii).
However, if an understatement is attributable to a tax
shelter item, adequate disclosure will not reduce the amount of
the understatement, and, in addition to showing the existence of
substantial authority, the taxpayer must show that he reasonably
believed that the tax treatment claimed was more likely than not
proper. Sec. 6661(b)(2)(C)(i). Substantial authority exists
when "the weight of the authorities supporting the treatment is
substantial in relation to the weight of the authorities
supporting contrary positions." Sec. 1.6661-3(b)(1), Income Tax
Regs. Moreover, good faith reliance on the advice of an
accountant, without evidence of what authority the accountant
relied upon in determining the treatment of such items, is
insufficient to show substantial authority. Deplano v.
Commissioner, T.C. Memo. 1998-303; Buck v. Commissioner, T.C.
Memo. 1997-191.
In this case, petitioners did not provide this Court with
any evidence of the authority on which they or Mr. Schutz relied.
Petitioners did not adequately disclose their position, nor did
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