Bruce and Lois Zenkel, et al. - Page 71

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          Commissioner, 893 F.2d at 228; Irom v. Commissioner, 866 F.2d               
          545, 547 (2d Cir. 1989), vacating in part T.C. Memo. 1988-211;              
          Harness v. Commissioner, T.C. Memo. 1991-321.                               
               In the present cases, no argument was made and no evidence             
          was presented to the Court to prove that disallowance and                   
          concession of the investment tax credits related to anything                
          other than a valuation overstatement.  To the contrary,                     
          petitioners each stipulated substantially the same facts                    
          concerning the Partnership transactions as we found in Provizer             
          v. Commissioner, supra.  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 2325 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, supra, 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                








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