- 4 -
(3) The taxpayer and the IRS desire to settle the
disputed TAX SHELTER issues on the same basis as finally
determined in the CONTROLLING CASE.
NOW IT IS HEREBY DETERMINED AND AGREED for federal
income tax purposes that;
(1) The above adjustment * * * shall be determined by
application of the same formula as that which resolved the
TAX SHELTER adjustment, whether litigated or settled, in the
CONTROLLING CASE, as set forth in the final decision, as
defined by section 7481 in the CONTROLLING CASE.
(2) All issues involving the above adjustment shall be
resolved as if the taxpayer was the same as the petitioner
in the CONTROLLING CASE.
(a) If the Court finds that any additions to tax or the
section 6621(c) interest are applicable to the underpayment
attributable to the above-designated TAX SHELTER adjustment,
the resolution of the TAX SHELTER issue and the
applicability of such additions to tax or interest to that
TAX SHELTER issue as determined in the CONTROLLING CASE,
whether by litigation or settlement, shall apply to the
taxpayer as if the taxpayer was the same as the petitioner
in the CONTROLLING CASE. [Fn. refs. omitted.]
The Provizer case referenced as the controlling case in the
agreement was decided adversely to the taxpayers by this Court.
The Court also sustained the additions to tax under sections
6653(a)(1), (2), and 6659 and determined that the increased
interest provisions of section 6621(c) were applicable. See
Provizer v. Commissioner, T.C. Memo. 1992-177, affd. without
published opinion 996 F.2d 1216 (6th Cir. 1993).
The facts concerning the transactions in Provizer may be
summarized as follows. Packaging Industries Group, Inc. (PI),
manufactured and sold six Sentinel Recyclers (the recyclers) to
Ethynol Cogeneration, Inc. (ECI), for $981,000 each. ECI, in
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011