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F. Ultimate Finding of Fact
At all relevant times, the fair market value of the Sentinel
EPE recyclers and the Sentinel EPS recyclers did not exceed
$50,000 per machine.
OPINION
We have decided many Plastics Recycling cases. The majority
of these cases, like the consolidated cases herein, presented
issues regarding additions to tax for negligence and valuation
overstatement. See Greene v. Commissioner, T.C. Memo. 1997-296;
Kaliban v. Commissioner, T.C. Memo. 1997-271; Sann v.
Commissioner, T.C. Memo. 1997-259 n.13 (and cases cited therein).
We found the taxpayers liable for the addition to tax for
valuation overstatement in all of those cases and liable for the
additions to tax for negligence in all but two of those cases.
In a limited number of cases, the taxpayers also contested the
underlying deficiency arising from the disallowance of the losses
and various credits with respect to their plastics recycling
investment. We sustained the Commissioner on the issue of the
underlying deficiency in every one of those cases.
In Provizer v. Commissioner, T.C. Memo. 1992-177, (6th Cir.
1993), a test case for the Plastics Recycling group of cases,
this Court: (1) Found that each Sentinel EPE recycler had a fair
market value not in excess of $50,000; (2) held that the
transaction, which was almost identical to the transactions in
the present cases, was a sham because it lacked economic
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