James D. Barber and Betty L. Barber - Page 2




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                                    Additions to tax                                                                                          
                                 Sec.         Sec.       Sec.                                                                                 
                         6653(a)(1)   6653(a)(2)       6659                                                                                   
                Year                                                                                                                          
                1982                     $1,162                        1           $5,236                                                     
                1983                     10          11 50 percent of the interest payable with                                                                    
                         respect to the portion of the underpayment                                                                           
                         that is attributable to negligence or                                                                                
                         intentional disregard of rules or regulations.                                                                       
                         The underpayments for the years in issue were                                                                        
                         determined and assessed pursuant to a partnership-                                                                   
                         level proceeding.  See secs. 6221-6233.  In the                                                                      
                         present cases, respondent determined that the                                                                        
                         entire underpayment for each of the years in                                                                         
                         issue is attributable to negligence or intentional                                                                   
                         disregard of rules or regulations.                                                                                   

                         Unless otherwise indicated, all section references are to                                                            
                the Internal Revenue Code in effect for the taxable years in                                                                  
                issue, and all Rule references are to the Tax Court Rules of                                                                  
                Practice and Procedure.                                                                                                       
                         After concessions by petitioners,1 the issues for decision                                                           

                         1 Petitioners do not contest that the Sentinel EPS recyclers                                                         
                that are involved in these cases were overvalued.  See Gottsegen                                                              
                v. Commissioner, T.C. Memo. 1997-314; see also Ulanoff v.                                                                     
                Commissioner, T.C. Memo. 1999-170.  Petitioners therefore concede                                                             
                (in par. 1. of the stipulation of facts) that they are liable for                                                             
                the addition to tax for valuation overstatement under sec. 6659                                                               
                for 1982.  To the extent that petitioners’ concession may not                                                                 
                extend to sec. 6659(e), and assuming arguendo that petitioners                                                                
                properly raised an issue under that section, then we decide such                                                              
                issue in respondent’s favor.  See, e.g., Addington v.                                                                         
                Commissioner, 205 F.3d 54, 62 (2d Cir. 2000), affg. Sann v.                                                                   
                Commissioner, T.C. Memo. 1997-259; Ulanoff v. Commissioner,                                                                   
                supra.                                                                                                                        
                                                                                                     (continued...)                           





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