- 45 -
consequence. Petitioners are not relieved of the negligence
additions to tax based on the preliminary reports prepared by
Carmagnola.
Petitioners also submitted several documents into the
records of their cases as evidence that they monitored their
investments. Of those documents, just one concerned Poly
Reclamation and none concerned Clearwater. The one that
concerned Poly Reclamation, dated September 30, 1982, indicated
that three of its Sentinel EPE recyclers had been placed and were
running.15 The remaining documents included two financial
statements for another Plastics Recycling partnership, Stevens
Recycling Associates (Stevens), for the years ended 1982, 1983,
and 1984; two reports regarding the placement of the Sentinel EPS
recyclers owned by Stevens; and an August 29, 1985, letter that
discussed "the impossible pricing situation that continues in the
polystyrene market." On the subject of the progress reports,
Zimmer testified: "To be honest with you, I didn't pay that much
attention to anything I got but I know that I got very infrequent
reports * * *. It was minuscule." We are not convinced from the
lone Poly Reclamation progress report that petitioners monitored
or took an active interest in their investments in the
15 The Sept. 30, 1982 update concerning Poly Reclamation was
not made a part of the record in docket No. 10802-89 (the Weber
case).
Page: Previous 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 NextLast modified: May 25, 2011