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interest under section 6621(c). We consider the amounts in
dispute in docket No. 27392-89 to be adjusted accordingly. For
each of these consolidated cases, the parties filed a Stipulation
of Settled Issues concerning the adjustments relating to
petitioners' participation in the Plastics Recycling Program.
The stipulations provide:
1. Petitioners are not entitled to any deductions,
losses, 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.
2. The underpayments in income tax attributable to
petitioners' participation in the Plastics Recycling
Program are substantial underpayments attributable to
tax motivated transactions, subject to the increased
rate of interest established under I.R.C. �6621(c),
formerly �6621(d).
3. This stipulation resolves all issues that relate to
the items claimed on petitioners' tax returns resulting
from their participation in the Plastics Recycling
Program, with the exception of petitioners' potential
liability for additions to the tax for valuation
overstatements under I.R.C. �6659 and for negligence
under the applicable provisions of �6653(a).
4. With respect to the issue of the addition to the
tax under I.R.C. �6659, Petitioners do not intend to
contest the value of the Sentinel Recycler or the
existence of a valuation overstatement on the
Petitioners' returns; however, Petitioners reserve
their right to argue that the underpayment in tax is
not attributable to a valuation overstatement within
the meaning of I.R.C. �6659(a)(1), and that the
Secretary should have waived the addition to tax
pursuant to the provisions of I.R.C. �6659(e).
Long after the trial of these consolidated cases, on
September 18, 1995, petitioners filed a Motion For Leave To File
Motion For Decision Ordering Relief From the Negligence Penalty
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