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is no record evidence of an abuse of administrative discretion
because “the taxpayers and their counsel * * * ought to request
any such waiver, not the Tax Court”); Osowski v. Commissioner,
T.C. Memo. 2000-367; Ulanoff v. Commissioner, T.C. Memo. 1999-
170; Jaroff v. Commissioner, T.C. Memo. 1996-527; Haught v.
Commissioner, supra.
Because petitioner’s underpayment is the result of an
overvaluation of more than 250 percent and because petitioner
did not prove that he requested a waiver of the section 6659
addition to tax, we sustain respondent’s determination that
petitioner is liable for the section 6659 addition to tax at the
rate of 30 percent of the underpayment of tax attributable to
the disallowed tax benefits.
C. Section 6621(c)
Section 6621(c) provides for an increased rate of interest
on an underpayment of tax equal to 120 percent of the normal
rate under section 6601, but only if such underpayment exceeds
$1,000 and is attributable to a tax-motivated transaction.
Section 6621(c)(3) defines the term “tax-motivated transaction”
to include any valuation overstatement within the meaning of
section 6659(c) and any sham or fraudulent transaction. Sec.
6621(c)(3)(A)(i), (v). The increased rate of interest is
effective with respect to interest accruing after December 31,
1984, even if the transaction was entered into before that date.
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