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7443A(b)(4) and Rules 180, 181, and 183.1 They were tried and
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, respondent determined a
deficiency in the 1981 joint Federal income taxes of petitioners
Stone in the amount of $52,576 and additions to tax for that year
in the amount of $15,773 under section 6659 for valuation
overstatement, in the amount of $2,629 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. In another notice of deficiency,
respondent determined deficiencies in the 1980 and 1981 joint
Federal income taxes of petitioners Cote in the respective
1 All section references are to the Internal Revenue Code in
effect for the years in issue, unless otherwise indicated. All
Rule references are to the Tax Court Rules of Practice and
Procedure.
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