- 57 -
Memo. 1992-460; Lee v. Commissioner, T.C. Memo. 1986-294;
Louismet v. Commissioner, T.C. Memo. 1982-294. We agree with
respondent that the cases are not substantial authority in favor
of petitioner’s position because they are all readily
distinguishable. Sec. 1.6661-3(b)(3), Income Tax Regs.
Section 6661(c) authorizes respondent to waive part or all
of this addition to tax upon a showing by the taxpayer that he
had reasonable cause for the understatement and that he acted in
good faith. Respondent’s failure to waive the addition to tax
under section 6661 is subject to review only for abuse of
discretion. Mailman v. Commissioner, 91 T.C. 1079, 1082-1084
(1988); Parsons v. Commissioner, T.C. Memo. 2000-205.
Petitioner did not show that he ever requested a waiver
under section 6661(c) or that respondent ruled on such a waiver.
Even if petitioner had requested a waiver under section 6661(c),
as he seems to suggest, petitioner has not proven he is entitled
to relief under section 6661(c).
We hold that petitioner is liable for the addition to tax
under section 6661 for 1988 if the Rule 155 computation shows a
substantial understatement of income tax.
B. Sec. 6653(a) Addition to Tax for Negligence and Sec.
6662(a) Accuracy-Related Penalty
For 1988, respondent also determined that petitioner is
liable for an addition to tax for negligence or intentional
disregard under section 6653(a)(1). For 1989, respondent
Page: Previous 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 NextLast modified: May 25, 2011