- 40 -
See Hitchins v. Commissioner, 103 T.C. 711, 719-720 (1994)
(“Indeed, we have specifically refused to impose * * * [a
penalty] where it appeared that the issue was one not previously
considered by the Court and the statutory language was not
entirely clear.”). Considering that the complex issues
underlying the deficiency in this case had yet to be litigated at
the time petitioners filed their return for 2000, we are
persuaded petitioners had reasonable cause and acted in good
faith in reporting their stock option transactions. See, e.g.,
Williams v. Commissioner, 123 T.C. 144 (2004) (declining to
impose a penalty involving an issue of first impression and the
interrelationship between complex tax and bankruptcy laws).
Consequently, we hold petitioners are not liable for an accuracy-
related penalty under section 6662(b)(2) for 2000.
To reflect the foregoing,
Decision will be entered
pursuant to Rule 155.
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