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transactions as we found in Provizer v. Commissioner, T.C. Memo.
1992-177. In the Provizer case, we held that the taxpayers were
liable for the section 6659 addition to tax because the
underpayment of taxes was directly related to the overvaluation
of the Sentinel EPE recyclers. The overvaluation of the
recyclers, exceeding 2,325 percent, was an integral part of our
findings in Provizer that the transaction was a sham and lacked
economic substance. Similarly, the records in these cases
plainly show that the overvaluation of the recyclers is integral
to and is the core of our holding that the underlying
transactions here were shams and lacked economic substance.
Petitioners' reliance on McCrary v. Commissioner, 92 T.C.
827 (1989), is misplaced. In that case, the taxpayers conceded
disentitlement to their claimed tax benefits, and the section
6659 additions to tax were held inapplicable. However, the
concessions of the claimed tax benefits, in and of themselves,
did not preclude imposition of the section 6659 additions to tax.
In McCrary v. Commissioner, supra, the section 6659 addition to
tax was disallowed because the agreement at issue was conceded to
be a license and not a lease. In contrast, the records in
petitioners' cases plainly show that petitioners' underpayments
were attributable to overvaluation of the Sentinel recyclers. We
hold that petitioners' reliance on McCrary v. Commissioner,
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