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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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Last modified: November 10, 2007