- 50 -
790; Goldman v. Commissioner, 39 F.3d at 408; Skeen v.
Commissioner, 864 F.2d 93 (9th Cir. 1989), affg. Patin v.
Commissioner, 88 T.C. 1086 (1987); Lax v. Commissioner, T.C.
Memo. 1994-329; Sacks v. Commissioner, supra; Rogers v.
Commissioner, T.C. Memo. 1990-619.
4. Miscellaneous
The parties in these consolidated cases stipulated that the
fair market value of a Sentinel EPE recycler in 1981 was not in
excess of $50,000. Regardless of this concession, petitioners
contend that they were reasonable in claiming credits on their
Federal income tax returns based upon each recycler's having a
value of $1,162,666. In support of this position, petitioners
rely upon preliminary reports prepared for respondent by Ernest
D. Carmagnola (Carmagnola), the president of Professional Plastic
Associates. Carmagnola had been retained by the IRS in 1984 to
evaluate the Sentinel EPE and EPS recyclers in light of what he
described as "the fantastic values placed on the * * *
[recyclers] by the owners." Based on limited information
available to him at that time, Carmagnola preliminarily estimated
that the value of the Sentinel EPE recycler was $250,000.
However, after additional information became available to him,
Carmagnola concluded in a signed affidavit, dated March 16, 1993,
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