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disallowing their claimed share of the partnership loss, $13,847.
Respondent determined that the amount of tax required to be shown
on petitioners’ return was $16,137 and that there was a
deficiency of $5,124 for that year.
In the statutory notice of deficiency which provides the
basis for our jurisdiction in this case, respondent determined
that petitioners are liable for additions to tax for 1982 under
section 6653(a)(1) and (2) in the respective amounts of $256 and
50 percent of the interest due on the $5,124 deficiency. Prior
to issuing the notice of deficiency, respondent did not make
inquiries of petitioners concerning the proposed adjustments, nor
did respondent provide petitioners with an opportunity for an
administrative appeal.
In his answer, respondent has asserted that petitioners also
are liable for an addition to tax under section 6661(a) for a
substantial understatement of tax.
Discussion
Burden of Proof
Prior to trial, petitioners moved to shift the burden of
production in this case pursuant to section 7491(c). The motion
was denied. In their brief, petitioners argue that respondent
bears the burden of proof with respect to the negligence issue
because respondent’s determination in the notice of deficiency
was determined “in an arbitrary manner.” We need not revisit the
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