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briefed separately but consolidated for purposes of opinion. The
Court agrees with and adopts the opinion of the Special Trial
Judge, which is set forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
WOLFE, Special Trial Judge: These cases are part of the
Plastics Recycling group of cases. For a detailed discussion of
the transactions involved in the Plastics Recycling cases, see
Provizer v. Commissioner, T.C. Memo. 1992-177, affd. without
published opinion 996 F.2d 1216 (6th Cir. 1993). The underlying
transactions in these cases are substantially identical to the
transaction considered in the Provizer case.
In a notice of deficiency dated August 21, 1989, respondent
determined a deficiency in the 1982 joint Federal income tax of
William and Joan Spears in the amount of $66,426 and additions to
tax for that year in the amount of $19,928 under section 6659 for
valuation overstatement, in the amount of $3,321 under section
6653(a)(1) for negligence, and under section 6653(a)(2) in an
amount equal to 50 percent of the interest due on the
underpayment attributable to negligence. Respondent also
determined that interest on deficiencies accruing after December
31, 1984, would be calculated at 120 percent of the statutory
rate under section 6621(c).
1(...continued)
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