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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
year in issue. In reaching the conclusion that the transaction
lacked a business purpose, this Court relied heavily upon the
overvaluation of the recyclers. Id.
Neither petitioners nor respondent had a copy of the
offering memorandum for Whitman available at the time of trial,
nearly 20 years after petitioners’ investment. In Barber v.
Commissioner, supra, where the taxpayers, like petitioners, were
limited partners in Whitman, we explained:
In a 4-step series of simultaneous transactions
closely resembling those described in the Provizer case
and stipulated by the parties herein, Packaging
Industries of Hyannis, Massachusetts (PI) manufactured
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