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Directory Results for Revenue Procedure 2003-77 - Penalties; Substantial Understatement. Penalties; substantial understatement. Guidance is provided concerning when ination shown on a return in accordance with the applicable forms and instructions will be to Revenue Procedure 2003-79 - Annual accounting periods; partnerships; S corporations. Annual accounting periods; partnerships; S corporations. Procedures are provided under which partners or shareholders of S corporations may elect, under