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underlying transactions in these consolidated cases, and the
Sentinel EPE recyclers considered in these cases, are the same
type of transaction and same type of machine considered in
Provizer v. Commissioner, supra.
Based on the entire records in these cases, including the
extensive stipulations, testimony of respondent's experts, and
petitioners' testimony, we hold that each of the Partnership
transactions herein was a sham and lacked economic substance. In
reaching this conclusion, we rely heavily upon the overvaluation
of the Sentinel EPE recyclers. Respondent is sustained on the
question of the underlying deficiencies. We note that
petitioners have explicitly conceded this issue in the respective
stipulations of settled issues filed shortly before trial. The
record plainly supports respondent's determination regardless of
such concessions. For a detailed discussion of the facts and the
applicable law in a substantially identical case, see Provizer v.
Commissioner, supra.
A. Section 6653(a)--Negligence
In each of the notices of deficiency, respondent determined
that petitioners are liable for the negligence additions to tax
under section 6653(a)(1) and (2) for the respective taxable years
in issue. Petitioners have the burden of proving that
respondent's determination is erroneous. Rule 142(a); Luman v.
Commissioner, 79 T.C. 846, 860-861 (1982).
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