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intentional disregard of rules or regulations. We hold that they
are liable for these additions to tax. The second issue is
whether petitioners are entitled to the benefits of a settlement
offer that was made available to some other taxpayers. We hold
that they are not entitled to the benefits of that settlement
offer.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulated facts and the attached exhibits are incorporated
by this reference.3 Petitioners resided in New York, New York,
at the time they filed the petition in this case.
A. The Plastics Recycling Transaction
This case is part of the Plastics Recycling group of cases.
The issues in this group of cases center about a circular
multistep transaction involving the sale and lease of machines
designed to recycle plastic scrap. The additions to tax arise
from the disallowance of losses, investment credits, and energy
3 The parties have stipulated that testimony and
documentary evidence admitted in Feinberg v. Commissioner, T.C.
Memo. 2003-304, and in Lewin v. Commissioner, T.C. Memo. 2003-
305, shall be admitted in the present case, subject to the
parties’ relevance objections, if any. In addition, the parties
have agreed to add to the record as exhibits the testimony of
Elliot Miller, in Provizer v. Commissioner, T.C. Memo. 1992-177,
affd. per curiam without published opinion 996 F.2d 1216 (6th
Cir. 1993), and of Stuart Becker, in Jaroff v. Commissioner, T.C.
Memo. 1996-527.
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