Ira S. Greene and Robin C. Greene - Page 15

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          taxpayers liable for such additions to tax in all but one of the            
          opinions to date on these issues.                                           
               In Provizer v. Commissioner, supra, a test case for the                
          Plastics Recycling group of cases, this Court (1) found that each           
          Sentinel EPE recycler had a fair market value not in excess of              
          $50,000, (2) held that the Clearwater transaction was a sham                
          because it lacked economic substance and a business purpose, (3)            
          upheld the section 6659 addition to tax for valuation                       
          overstatement since the underpayment of taxes was directly                  
          related to the overstatement of the value of the Sentinel EPE               
          recyclers, and (4) held that losses and credits claimed with                
          respect to Clearwater were attributable to tax-motivated                    
          transactions within the meaning of section 6621(c).  In reaching            
          the conclusion that the Clearwater transaction lacked economic              
          substance and a business purpose, this Court relied heavily upon            
          the overvaluation of the Sentinel EPE recyclers.                            
               Although petitioners have not agreed to be bound by the                
          Provizer opinion, they have stipulated that the investment in the           
          Sentinel EPE recyclers in this case is similar to the investment            
          described in Provizer v. Commissioner, supra.  The underlying               
          transactions in this case, and the Sentinel EPE recyclers                   
          purportedly leased by Resource, are the same type of transactions           
          and same type of machines considered in Provizer v. Commissioner,           
          supra.                                                                      






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