Estate of Romine C. Hogard, Deceased, James C. Elliott, Personal Representative, and Bill F. Stewart, Personal Representative, and Wanda L. Hogard, et al. - Page 4

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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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