Robert D. and Patricia K. Kaliban, et al. - Page 27

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            transactions within the meaning of section 6621(c).  In reaching                          
            the conclusion that the 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, the Clearwater transaction was considered in                            
            Provizer v. Commissioner, supra, and petitioners Kaliban, Roland,                         
            and Zimmer each stipulated that the Poly Reclamation transaction                          
            is substantially identical to the Clearwater transaction.  The                            
            underlying transactions in these cases, and the Sentinel EPE                              
            recyclers purportedly leased by the Partnerships, are the same                            
            type of transaction and same type of machines considered in                               
            Provizer v. Commissioner, supra.                                                          
                  Based on the entire records in these cases, including the                           
            extensive stipulations, testimony of respondent's experts, and                            
            petitioners' testimony, we hold that each of the Partnership                              
            transactions herein was a sham and lacked economic substance.  In                         
            reaching this conclusion, we rely heavily upon the overvaluation                          
            of the Sentinel EPE recyclers.  Respondent is sustained on the                            
            question of the underlying deficiencies.  We note that                                    
            petitioners have explicitly conceded this issue in the                                    
            stipulations of settled issues filed shortly before trial.  The                           
            records plainly support respondent's determinations regardless of                         
            such concessions.  For a detailed discussion of the facts and the                         

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