- 80 -
(1) Allowance of a deduction for 50 percent of the amount of the
cash investment in the venture in the year(s) of investment to
the extent of loss claimed; (2) Government concession of the
substantial understatement of tax penalties under section 6661
and the negligence additions to tax under section 6653(a)(1) and
(2); (3) taxpayer concession of the section 6659 addition to tax
for valuation overstatement and the increased rate of interest
under section 6621; and (4) execution of a closing agreement
(Form 906) stating the settlement and resolving the entire matter
for all years. Petitioners assert that the Plastics Recycling
project settlement offer was extended to them, but they do not
claim to have accepted the offer timely, so they effectively
rejected it.
In December 1988, the Miller cases were disposed of by
settlement agreement between the taxpayers and respondent.9 This
Court entered decisions based upon those settlements on December
22, 1988. The settlement provided that the taxpayers in the
Miller cases were liable for the addition to tax under section
6659 for valuation overstatement, but not for the additions to
tax under sections 6661 and 6653(a). The increased interest
9 Although it is not otherwise a part of the record in
these cases, respondent attached copies of the Miller closing
agreement and disclosure waiver to her objections to petitioners'
motion for leave, and petitioners do not dispute the accuracy of
the document.
Page: Previous 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 NextLast modified: May 25, 2011