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tax benefits provide the only credible explanation for
petitioner’s participation.
The evidence is clear that petitioner had no valid business
purpose for the transfer to Wildervank of its interests in the
Trust Fund and in the Brussels Leaseback and for the transfer to
Wildervank of the $400,000 in cash. Other than claimed tax
benefits, petitioner received nothing of value. The transactions
lacked business purpose and economic substance, and the
transactions are to be disregarded for Federal income tax
purposes.
Petitioner argues that because of a shift in respondent’s
argument, the burden of proof should be shifted to respondent.
Rule 142. Our findings and conclusions herein are based on the
evidence and are made without reliance on the burden of proof.
Other arguments made by petitioner have been considered and
are without merit.
Section 6662 imposes a penalty of 20 percent on
underpayments of tax attributable to negligence or to disregard
of the rules or the regulations. For purposes of section
6662(a), negligence constitutes a failure to make a reasonable
attempt to comply with the Internal Revenue Code. Sec. 6662(c).
The accuracy-related penalty under section 6662(a) will not
apply to any part of petitioner’s underpayments of tax if, with
regard to that part of the underpayments, petitioner establishes
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