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controversy involved. See Schirmer v. Commissioner, 89 T.C. 277,
285-286 (1987). Petitioners argue that the deduction was clearly
indicated on the return. Merely claiming the loss, without
further explanation, was not sufficient to alert respondent to
the controversial section 174 deduction of which the partnership
loss consisted.
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.
We review 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). Petitioners argue that
they acted in good faith and reasonably relied upon Mr. Meinke in
claiming the loss. However, nothing in the record indicates
petitioners requested a waiver for good faith and reasonable
cause under section 6661(c). In the absence of such a request,
we cannot review respondent’s determination for an abuse of
discretion. See id.
Because petitioners did not have substantial authority for
their treatment of the partnership loss and did not adequately
disclose the relevant facts of that treatment, we uphold
respondent on this issue.
The third issue for decision is whether this Court has
jurisdiction to review the section 6621(c) tax-motivated interest
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