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The Court agrees with and adopts the opinion of the Special Trial
Judge, which is set forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
WOLFE, Special Trial Judge: This matter is before the Court
on petitioners’ Motion for Leave to File Amended Petition.
Because of concessions and agreements made by the parties,1 the
sole issue remaining for decision is whether petitioners are
entitled to the benefits of a settlement offer that was made
available to other taxpayers who had partnership interests in SAB
Resource Recovery Associates, a part of the Plastics Recycling
1 Petitioners concede that they are not entitled to any
deductions, losses, investment credits, business energy
investment credits, or any other tax benefits claimed on their
1981 Federal income tax return as a result of their participation
in SAB Resource Recovery Associates (SAB). Petitioners also
concede that they are not entitled to any investment tax credit
carrybacks to the years 1978 and 1979 that resulted from their
participation in SAB. Petitioners also concede that the
resulting underpayments in income tax are substantial
underpayments attributable to tax-motivated transactions, subject
to the increased rate of interest established under sec. 6621(c).
Petitioners stipulate that they are liable for an addition to tax
under sec. 6659 for valuation overstatement for 1981 of $17,253.
Petitioners also concede that the assessment period for 1981 with
regard to the amount of any deficiency that resulted from any
adjustment to items from SAB was extended pursuant to sec.
6501(c)(4). Petitioners further concede that to the extent the
notices of deficiency for 1978 and 1979 relate to investment tax
carrybacks from the year 1981 arising from petitioners’
participation in SAB, any assessments and collection of any
deficiencies arising from the disallowance of such credits are
not barred by the statute of limitations pursuant to sec.
6501(j). By stipulation, respondent concedes that petitioners
are not required to include in their 1978 gross income $42,935 as
a recovery of income. Respondent also concedes that petitioners
are not subject to an addition to tax under sec. 6651(a)(1) for
1978.
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