- 2 -
and adopts the opinion of the Special Trial Judge, which is set
forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
WOLFE, Special Trial Judge: This case is part of the
Plastics Recycling group of cases. For a detailed discussion of
the transactions involved in the Plastics Recycling cases, see
Provizer v. Commissioner, T.C. Memo. 1992-177, affd. without
published opinion 996 F.2d 1216 (6th Cir. 1993). The facts of
the underlying transaction in this case are substantially
identical to those in the Provizer case.
In a notice of deficiency dated May 31, 1989, respondent
determined a deficiency in petitioners' joint 1981 Federal income
tax in the amount of $109,168.19 (in addition to $29,995
previously assessed as a deficiency) and additions to tax for
that year in the amount of $41,748.95 under section 6659 for
valuation overstatement, in the amount of $6,958 under section
6653(a)(1) for negligence, and under section 6653(a)(2) in an
amount equal to 50 percent of the interest due on the
underpayment attributable to negligence.2 Respondent also
1(...continued)
Procedure.
2
In the May 31, 1989, notice of deficiency, respondent also
determined a deficiency in and additions to petitioners' Federal
income tax for taxable year 1982. The deficiency and additions
to tax determined for 1982 have been settled by the parties and
are no longer at issue. Petitioners have conceded that the
statute of limitations on the assessment of income tax due from
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011