- 27 -
prior to trial. Neither the date on which the action was settled
nor the amount for which it was settled is disclosed in the
record before us.
OPINION
We have decided many Plastics Recycling cases. Most of
these cases have presented issues regarding additions to tax for
negligence and valuation overstatement. See, e.g., Carroll v.
Commissioner, T.C. Memo. 2000-184; Ulanoff v. Commissioner, T.C.
Memo. 1999-170; Gottsegen v. Commissioner, T.C. Memo. 1997-314;
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), affd. Addington v.
Commissioner, 205 F.3d 54 (2d Cir. 2000). 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 nearly all of those cases.
I. Section 6653(a)(1) and (2) Negligence
Respondent determined that petitioners are liable for
additions to tax under section 6653(a)(1) and (2) with respect to
the underpayment attributable to petitioners’ investment in
Dickinson. Petitioners have the burden of proof to show that
they are not liable for the additions to tax. See Addington v.
Commissioner, supra; Goldman v. Commissioner, 39 F.3d 402, 407
(2d Cir. 1994), affg. T.C. Memo. 1993-480; Luman v. Commissioner,
Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NextLast modified: May 25, 2011