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1991), affg. T.C. Memo. 1989-684; Masters v. Commissioner, T.C.
Memo. 1994-197; Harness v. Commissioner, T.C. Memo. 1991-321.
In their respective Stipulation of Settled Issues,
petitioners each conceded that they "are not entitled to any
deductions, investment credits, business energy investment
credits, or any other tax benefits claimed on their tax returns
as a result of their participation in the Plastics Recycling
Program." In Todd v. Commissioner, supra, and McCrary v.
Commissioner, supra, we denied application of section 6659, even
though the subject property was overvalued, because the related
deductions and credits had been conceded or denied in their
entirety on other grounds. In Todd, we found that an
underpayment was not attributable to a valuation overstatement
because property was not placed in service during the years in
issue. In McCrary, we found the taxpayers were not liable for
the section 6659 addition to tax when, prior to the trial of the
case, the taxpayers conceded that they were not entitled to the
investment tax credit because the agreement in question was a
license and not a lease. In both cases, the underpayment was
attributable to something other than a valuation overstatement.
A concession of the investment tax credit in and of itself
does not relieve taxpayers of liability for the section 6659
addition to tax. See Dybsand v. Commissioner, T.C. Memo. 1994-
56; Chiechi v. Commissioner, T.C. Memo. 1993-630. Instead, what
is significant is the ground upon which the investment tax credit
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