Daniel C. Greer and Winnie L. Greer - Page 23

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         Nielsen v. Commissioner, 87 T.C. 779 (1986).  Therefore, if the              
         addition to tax is appropriate, it would apply to all the years              
         before us.  Here, respondent asserts an overstatement exceeding              
         250 percent of the value of the four Sentinel EPS Recyclers on the           
         partnership return.  Petitioners do not contest the value was                
         overstated as respondent asserts, but petitioners maintain that              
         the adjustment in question was not specifically tied to the value            
         of the recyclers.  Nevertheless, the FPAA notes the disallowance             
         of $7 million in investment tax credit property and $7 million in            
         business energy investment credit property.  Ultimately, these               
         adjustments were sustained.  Petitioners understandably make no              
         attempt to offer a reasonable basis for the value claimed on the             
         partnership return under section 6659(e).  Given these                       
         circumstances, we reject petitioners’ argument and sustain the               
         addition to tax under section 6659 as determined by respondent.              
              To reflect the foregoing and concessions by the parties,                

                                            Decision will be entered                  
                                       under Rule 155.                                

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