- 59 -
Id. at 151 (quoting Massengill v. Commissioner, 876 F.2d 616,
619-620 (8th Cir. 1989), affg. T.C. Memo. 1988-427); see also
Rybak v. Commissioner, 91 T.C. at 566-567; Zirker v.
Commissioner, 87 T.C. 970, 978-979 (1986); Donahue v.
Commissioner, T.C. Memo. 1991-181, affd. without published
opinion 959 F.2d 234 (6th Cir. 1992), affd. sub nom. Pasternak v.
Commissioner, 990 F.2d 893 (6th Cir. 1993).
Petitioners' reliance on Gainer v. Commissioner, supra, Todd
v. Commissioner, supra, and McCrary v. Commissioner, 92 T.C. at
827, is misplaced. In those cases, in contrast to the
consolidated cases herein, it was found that a valuation
overstatement did not contribute to an underpayment of taxes. In
the Todd and Gainer cases, the underpayments were due exclusively
to the fact that the property in each case had not been placed in
service. In the McCrary case, the underpayments were deemed to
result from a concession that the agreement at issue was a
license and not a lease. Although property was overvalued in
each of those cases, the overvaluations were not the grounds on
which the taxpayers' liability was sustained. In contrast, "a
different situation exists where a valuation overstatement * * *
is an integral part of or is inseparable from the ground found
for disallowance of an item." McCrary v. Commissioner, supra at
859. Petitioners' cases present just such a "different
situation": overvaluation of the recyclers was integral to and
Page: Previous 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 NextLast modified: May 25, 2011