Lucian T. Baldwin, III - Page 57




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          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                   






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