- 13 -
deductions and credits were derived, petitioners appear to have
conceded the merits of these items. Furthermore, petitioners did
not set forth clear and concise assignments of error in their
petitions concerning these items. See Rule 34(b)(4). In any
event, petitioners have provided no substantiation or other
evidence concerning the farming losses or the general business
credits related thereto. In the absence of substantiation,
petitioners are not entitled to the farming loss deductions or
the credits. Sec. 6001; sec. 1.6001-1(a), (e), Income Tax Regs.
We therefore sustain respondent’s determinations as to the
underlying deficiencies in these cases.
II. Additions to Tax
A. Valuation Overstatements
With respect to petitioners’ taxable years 1984, 1985, 1987,
and 1988, section 6659(a)5 generally imposes an addition to tax
on any portion of an underpayment of income tax by an individual
which is “attributable to a valuation overstatement”. A
“valuation overstatement” exists “if the value of any property,
or the adjusted basis of any property, claimed on any return is
150 percent or more of the amount determined to be the correct
amount”. Sec. 6659(c)(1). The addition to tax applies only if
5References to sec. 6659 are to sec. 6659 as in effect with
respect to returns that were filed after Dec. 31, 1981, and that
were due before Jan. 1, 1990. See Economic Recovery Tax Act of
1981, Pub. L. 97-34, sec. 722(a), 95 Stat. 341; OBRA sec. 7721,
103 Stat. 2395.
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011