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on Johnston Island for taxable years that began after December
31, 1986. On the record before us, we find that respondent has
satisfied respondent’s burden of production under section 7491(c)
with respect to the accuracy-related penalty under section
6662(a) and (b)(1) that respondent determined for 2001.
We turn now to petitioners’ position that they are not
liable for 2001 for the accuracy-related penalty under section
6662(a). According to petitioners, they are not liable for that
penalty because (1) there was substantial authority for claiming
the $99,980 exclusion of 2001 wages in their 2001 joint return,
(2) there was adequate disclosure of the relevant facts affecting
such tax treatment of those wages, and (3) there was a reasonable
basis for such tax treatment.
We shall address only whether petitioners had a reasonable
basis in claiming the $99,980 exclusion of 2001 wages in their
2001 joint return. If the record were to establish that peti-
tioners did not have a reasonable basis in claiming that exclu-
sion, such return position of petitioners would be attributable
to negligence.10 Van Camp & Bennion v. United States, 251 F.3d
at 866.
In support of petitioners’ position that they had a reason-
10A fortiori, a return position that did not have a reason-
able basis is not a position for which there was substantial
authority under sec. 6662(d)(2)(B)(i) and the regulations there-
under.
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