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recyclers was the only reason for the disallowance of the claimed
tax benefits, we conclude that the deficiencies were attributable
to overvaluation of the Sentinel EPE recyclers.
3. Section 6659(e)
Petitioners argue that respondent erroneously failed to
waive the section 6659 additions to tax. Section 6659(e)
authorizes the Commissioner to waive all or part of the addition
to tax for valuation overstatement if taxpayers establish that
there was a reasonable basis for the adjusted bases or valuations
claimed on the returns and that such claims were made in good
faith. The Commissioner's refusal to waive a section 6659
addition to tax is reviewable by this Court for abuse of
discretion. Krause v. Commissioner, 99 T.C. at 179. Abuse of
discretion has been found in situations where the Commissioner's
refusal to exercise discretion is arbitrary, capricious, or
unreasonable. See Mailman v. Commissioner, 91 T.C. 1079 (1988);
Estate of Gardner v. Commissioner, 82 T.C. 989 (1984); Haught v.
Commissioner, T.C. Memo. 1993-58.
We note initially that petitioners did not request
respondent to waive the section 6659 additions to tax until well
after the trials of these cases. Petitioners each made their
requests approximately 4 months after the trials of their cases.
We are reluctant to find that respondent abused discretion in
these cases when respondent was not timely requested to exercise
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