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the overvaluation of the Sentinel EPE recyclers.
Although petitioners have not agreed to be bound by the
Provizer opinion, they have stipulated that petitioner Allan J.
Becker's investments in the Sentinel EPE recyclers in this case
are similar to the investment described in Provizer v.
Commissioner, supra. The underlying transactions in this case,
and the Sentinel EPE recyclers considered in this case, are the
same type of transaction and same type of machines considered in
Provizer v. Commissioner, supra.
Based on the entire record in this case, including the
extensive stipulations, testimony of respondent's experts, and
petitioner Allan J. Becker's testimony, we hold that each of the
Partnership transactions herein was a sham and lacked economic
substance. In reaching this conclusion, we rely heavily upon the
overvaluation of the Sentinel EPE recyclers. Respondent is
sustained on the question of the underlying deficiencies. We
note that petitioners have explicitly conceded this issue in the
first stipulation of facts and the stipulation of settled issues
filed shortly before trial. The record plainly supports
respondent's determinations regardless of such concession. For a
detailed discussion of the facts and the applicable law in a
substantially identical case, see Provizer v. Commissioner,
supra.
A. Statute of Limitations
In their petition, petitioners alleged that each of the
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