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Section 6661(c) vests the Commissioner with discretion to
waive the addition to tax under section 6661(a) if the taxpayer
shows that he or she acted with reasonable cause and in good
faith. The Commissioner’s failure to waive the addition to tax
is reviewed by this Court for abuse of discretion. Martin Ice
Cream Co. v. Commissioner, 110 T.C. 189, 235 (1998).
There is nothing in the record to suggest that petitioner
ever requested that respondent waive the addition to tax under
section 6661(a). Indeed, petitioner does not even allege that he
requested such a waiver. For that reason alone, we cannot find
that respondent abused his discretion in failing to waive the
addition to tax. See McCoy Enters., Inc. v. Commissioner, 58
F.3d 557, 563-564 (10th Cir. 1995), affg. T.C. Memo. 1992-693;
Finazzo v. Commissioner, T.C. Memo. 2002-56; Klieger v.
Commissioner, T.C. Memo. 1992-734; sec. 1.6661-6, Income Tax
Regs.
Even if petitioner had requested a waiver under section
6661(c), the record demonstrates that he failed to act reasonably
and in good faith in deducting the claimed loss from San
Nicholas. Petitioner’s failure to adequately investigate San
Nicholas or to seek independent, competent advice about the
partnership demonstrates a lack of reasonable cause and good
faith. See Finazzo v. Commissioner, supra; DePlano v.
Commissioner, T.C. Memo. 1998-303.
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