Herbert L. Whitehead and Jennifer L. Whitehead - Page 61




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          statement of tax for each year at issue as a result of our                  
          holdings in this case that exceeds the greater of 10 percent of             
          the tax required to be shown in petitioners’ joint return for               
          each such year or $5,000, see sec. 6662(d)(1)(A), petitioners               
          have failed to show that there is no substantial understatement             
          of tax under section 6662(b)(2) and (d).  On that record, we                
          further find that petitioners have failed to show that they were            
          not negligent and did not disregard rules or regulations within             
          the meaning of section 6662(b)(1), or otherwise did what a                  
          reasonable person would do, with respect to any portion of the              
          underpayment for each year at issue.  On the record before us, we           
          also find that petitioners have failed to show that they acted              
          with reasonable cause and in good faith with respect to any                 
          portion of the underpayment for each such year.  See sec.                   
          6664(c).                                                                    
               Based on our examination of the entire record before us, we            
          find that petitioners have failed to establish error in respon-             
          dent’s determinations that they are liable for each year at issue           
          for the accuracy-related penalty under section 6662(a).                     
               We have considered all of the contentions and arguments of             
          the parties that are not discussed herein, and we find them to be           
          without merit and/or irrelevant.                                            
               To reflect the foregoing, the concessions of respondent, and           
          the matters abandoned by petitioners,                                       
                                             Decision will be entered under           
                                        Rule 155.                                     




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