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affd. sub nom. Addington v. Commissioner, 205 F.3d 54 (2d Cir.
2000). In all but a few of those cases, we found the taxpayers
liable for the additions to tax for negligence. Moreover, in all
of the Plastics Recycling cases in which the issue has been
raised, we have found the taxpayers liable for additions to tax
for valuation overstatement.
In Provizer v. Commissioner, T.C. Memo. 1992-177, the test
case for the Plastics Recycling group of cases, this Court:
(1) Found that each recycler had a fair market value of not more
than $50,000; (2) held that the transaction, which was virtually
identical to the transactions in the present cases, was a sham
because it lacked economic substance and a business purpose; (3)
sustained the additions to tax for negligence under section
6653(a)(1) and (2); (4) sustained the addition to tax for
valuation overstatement under section 6659 because the
underpayment of taxes was directly related to the overvaluation
of the recyclers; and (5) held that the partnership losses and
tax credits claimed with respect to the plastics recycling
partnership at issue were attributable to tax-motivated
transactions within the meaning of section 6621(c). We also
found that other recyclers were commercially available during the
years in issue. See id. In reaching the conclusion that the
transaction lacked a business purpose, this Court relied heavily
upon the overvaluation of the recyclers. Similarly, in Gottsegen
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