Leon and Belle Atkind - Page 2

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            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                                  

                  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                             

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