- 40 -
Commissioner, supra; Rybak v. Commissioner, 91 T.C. 524, 566-567
(1988); Zirker v. Commissioner, 87 T.C. 970, 978-979 (1986);
Donahue v. Commissioner, T.C. Memo. 1991-181, affd. without
published opinion 959 F.2d 234 (6th Cir. 1992), affd. sub nom.
Pasternak v. Commissioner, 990 F.2d 893 (6th Cir. 1993).
We held in Provizer v. Commissioner, supra, that each
Sentinel EPE recycler had a fair market value not in excess of
$50,000. Our finding in the Provizer case that the Sentinel EPE
recyclers had been overvalued was integral to and inseparable
from our finding of a lack of economic substance. Petitioners
conceded that the Northeast and Hyannis transactions were similar
to the Clearwater transaction described in Provizer v.
Commissioner, supra, and that the Northeast and Hyannis
transactions lacked economic substance. Given those concessions,
and the fact that the records here plainly show that the
overvaluation of the recyclers was the reason for the
disallowance of the tax benefits, and the fact that no argument
was made and no evidence was presented to the Court to prove that
disallowance and concession of the tax benefits related to
anything other than a valuation overstatement, we conclude that
the deficiencies caused by the disallowance of the claimed tax
benefits were attributable to the overvaluation of the Sentinel
EPE recyclers.
Finally, we consider petitioners' express arguments as to
waiver of the addition to tax under section 6659. On brief,
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