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gains, mortgage interest, and charitable contributions items
allocable to petitioner.
VIII. Additions to Tax and Penalties
Respondent did not determine that the fraud additions to tax
pursuant to section 6653(b) for the taxable years 1987 and 1988,
and the fraud penalty pursuant to section 6663 for the taxable
year 1989, were applicable to petitioner. On brief, respondent
concedes that to the extent any relief is granted for a portion
of the deficiencies, relief is automatic for the penalties
related to that portion. Petitioner concedes that the estimated
tax penalty pursuant to section 6654 for 1990 should be allocated
proportionally to the allocation of the underlying deficiency.
Petitioner contends that it is inequitable to hold her liable for
any remaining additions to tax or penalties.
We have previously held that we have jurisdiction to review
the denial of relief from joint liability under section 6015(f)
for additions to tax and penalties. Cheshire v. Commissioner,
115 T.C. at 197-199. We review respondent’s refusal to grant
equitable relief for additions to tax or penalties under an abuse
of discretion standard. Id. at 198. In Cheshire v.
Commissioner, supra, we provided the following guidance in
determining whether respondent has abused his discretion in
denying equitable relief in situations involving additions to tax
or penalties:
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