- 3 - conducted in the three above-mentioned cases with respect to deficiencies in and additions to tax resulting from participation in Encore. In each case, we held in favor of respondent on all issues; each case was affirmed by the Court of Appeals for the Ninth Circuit. Petitioners were among a large number of persons nationwide who invested in the Encore master recording lease program and who claimed credits, deductions, and losses with respect thereto that were disallowed by respondent. In order to resolve common issues, a test case was selected among the cases in which persons whose credits, deductions, and losses had been disallowed by respondent had petitioned this Court for a redetermination of that disallowance. We rendered an opinion in the test case, Wolf v. Commissioner, supra, and held that the Encore lease transaction was a sham entered into without the intent to make a profit in which tax considerations were paramount. More specifically, in Wolf v. Commissioner, supra, this Court held that: (1) The taxpayers were not entitled to claimed deductions and investment tax credits related to their participation in Encore; (2) the taxpayers’ underpayments for the years at issue were due to negligence or intentional disregard of rules and regulations, and as a result, were liable for the 1(...continued) without published opinion 5 F.3d 536 (9th Cir. 1993); Garcia v. Commissioner, T.C. Memo. 1991-451, affd. without published opinion 5 F.3d 536 (9th Cir. 1993).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011