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the bulk of his refunds to the Hoyt organization. However, this
does not alter our conclusion that petitioner was negligent with
respect to entering into the investment, and he was negligent
with respect to the positions taken on his returns. Despite
Hoyt’s actions, the positions taken on the 1994 and 1995 returns,
signed by petitioner, were ultimately the positions of
petitioner.
G. Conclusion
Petitioner’s underpayments of tax for 1994 and 1995 were
the result of petitioner’s negligence, and portions of those
underpayments were attributable to gross valuation misstatements.
Petitioner did not have reasonable cause for the underpayments.
Likewise, petitioner’s arguments regarding judicial estoppel and
fairness do not absolve him from liability for the accuracy-
related penalties. Therefore, we hold that petitioner is liable
for 40-percent accuracy-related penalties under section 6662(h)
on his underpayments attributable to gross valuation
misstatments, so long as the total of those underpayments exceeds
$5,000. On his underpayments not subject to penalties under
section 6662(h), we hold that petitioner is liable for 20-percent
accuracy-related penalties under section 6662(a) and (b)(1).
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