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We accordingly find that the portion of the section 6662(a)
penalties determined in connection with these deductions is
likewise to be allocated to Mr. Elesh. Sec. 6015(d)(3)(A).8
With respect to the portions of the penalties relating to
the rental loss deductions, we find that respondent’s failure to
relieve petitioner from joint and several liability was not an
abuse of discretion. Petitioner made no effort to assess her
proper tax liability for the years in issue, and she did not act
with reasonable cause and in good faith because she failed to
review the returns, which she signed. Thus, because we would
find petitioner to have been negligent with respect to the rental
loss deductions outside the context of section 6015 relief, we
find that respondent’s failure to grant relief with respect to
the penalties was not an abuse of discretion.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
under Rule 155.
8See also sec. 1.6015-3(d)(4)(iv)(B), Income Tax Regs. (“Any
accuracy-related or fraud penalties under section 6662 or 6663
are allocated to the spouse whose item generated the penalty”).
See supra note 5 regarding the applicability of this regulation.
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