Kenneth and Dorothy Hitchen - Page 13

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          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.                                                             

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