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motivated 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, they have stipulated that their investments in
the Sentinel EPE recyclers in these cases are similar to the
investment described in Provizer v. Commissioner, supra. 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
applicable law in a substantially identical case, see Provizer v.
Commissioner, supra.
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