- 9 - Under section 6662(d)(2)(B)(i), the amount of a tax understatement may be reduced by the portion thereof that is attributable to the tax treatment of an item for which there was substantial authority. We find that given the unusual circumstances of this case, petitioners’ underreporting of Mr. Rusten’s self-employment tax was due to reasonable cause. Therefore, the penalty under section 6662 is not applicable. To reflect the foregoing, Decision will be entered under Rule 155.Page: Previous 1 2 3 4 5 6 7 8 9 10Last modified: March 27, 2008