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1. Petitioners are not entitled to any deductions,
losses, investment credits, business energy credits or
any other tax benefits claimed on their tax returns for
the taxable years in issue as a result of their
participation in the Plastics Recycling Program.
2. The underpayments in income tax attributable to the
investment credit and business energy investment credit
claimed with respect to petitioners' participation in
the Plastics Recycling Program are subject to the
addition to tax for valuation overstatements determined
under I.R.C. section 6659 using an applicable
percentage of 30 percent.
3. The underpayments in income tax attributable to
petitioners' participation in the Plastics Recycling
Program are substantial underpayments attributable to
tax motivated transactions, subject to the increased
rate of interest established under I.R.C. section
6621(c) as set forth in the notice of deficiency.
4. This stipulation resolves all issues that relate to
the items claimed on petitioners' tax returns resulting
from their participation in the Plastics Recycling
Program, with the exception of petitioners' potential
liability for additions to tax for negligence under the
applicable provisions of section 6653(a).
The issue remaining for decision is whether petitioners are
liable for the additions to tax for negligence under the relevant
provisions of section 6653 for the years in issue. Although not
specifically addressed in the Stipulation of Settled Issues,
because neither evidence nor argument was presented on the point
by the affected petitioners, we deem those petitioners to have
conceded respondent's determinations with respect to the section
6661 addition to tax. Rule 149(b); Murphy v. Commissioner, 103
T.C. 111, 119 (1994); Rothstein v. Commissioner, 90 T.C. 488, 497
(1988).
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