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Blythe I loss deduction were adequately disclosed on his 1982
return.9
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.
Commissioner, 110 T.C. 189, 235 (1998). Petitioner argues that
he acted in good faith and reasonably relied upon the advice of
Mr. McDevitt 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 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
$10,340. The understatement is substantial because it exceeds
9 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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