Malcolm I. Lewin and Trina Lewin - Page 2

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          and Procedure.  The Court agrees with and adopts the opinion of             
          the Special Trial Judge, which is set forth below.                          
                         OPINION OF THE SPECIAL TRIAL JUDGE                           
               WOLFE, Special Trial Judge:  In a so-called affected items             
          notice of deficiency, respondent determined additions to tax with           
          respect to petitioners’ 1982 Federal income tax of $6,006 under             
          section 6659 for valuation overstatement, $1,237 under section              
          6653(a)(1) for negligence, and under section 6653(a)(2) in an               
          amount equal to 50 percent of the interest due on $24,747, the              
          amount of the underpayment attributable to negligence.  The                 
          underpayment was determined pursuant to a partnership-level                 
          proceeding.  See secs. 6221-6233.  After concessions,1 there are            
          two issues remaining for decision.  The first issue is whether              
          petitioners are liable for the additions to tax under the                   
          provisions of section 6653(a)(1) and (2) for negligence or                  
          intentional disregard of rules or regulations.  We hold that they           
          are liable for these additions to tax.  The second issue is                 
          whether petitioners are entitled to the benefits of a settlement            
          offer that was made available to some other taxpayers. We hold              

               1  By stipulation, petitioners concede the imposition of the           
          valuation overstatement addition to tax under sec. 6659.  In                
          addition, petitioners concede that the limitations period remains           
          open for assessment and collection of any penalties, additions to           
          tax, or interest attributable to partnership items for the 1982             
          tax year that may be held to be due from petitioners.                       
          Petitioners previously raised the statute of limitations as a               
          defense in their petition.                                                  

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