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opinion 959 F.2d 234 (6th Cir. 1992), affd. sub nom. Pasternak v.
Commissioner, 990 F.2d 893 (6th Cir. 1993).
We held in Provizer v. Commissioner, T.C. Memo. 1992-177,
that each Sentinel EPE recycler had a fair market value not in
excess of $50,000. Our finding in the Provizer case that the
Sentinel EPE recyclers had been overvalued was integral to and
inseparable from our finding of a lack of economic substance.
Petitioners stipulated substantially the same facts regarding the
Hyannis transaction as we found with respect to the Clearwater
transaction described in the Provizer case, and that the
recyclers each had a fair market value not in excess of $50,000.
Given those stipulations, and the fact that the records here
plainly show that the overvaluation of the recyclers was the
primary reason for the respective disallowances of the claimed
tax benefits, and the fact that no argument was made and no
evidence was presented to the Court to prove that the
disallowances and concessions of the investment tax credits
related to anything other than a valuation overstatement, we
conclude that the respective deficiencies caused by the
disallowances of the claimed tax benefits were attributable to
overvaluation of the Sentinel EPE recyclers.
Finally, we consider the express arguments of petitioners as
to waiver of the section 6659 additions to tax. On brief,
petitioners each contested imposition of the section 6659
addition to tax on the grounds that respondent erroneously failed
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