Richard J. Todd and Denese W. Todd v. Commissioner of Internal Revenue

PATRICK E. HIGGINBOTHAM, Circuit Judge:

Taxpayers Richard and Denese Todd appealed deficiencies and penalties assessed by the Commissioner of Internal Revenue. The Tax Court denied the taxpayers’ claimed depreciation deductions and investment tax credits. In a later opinion, the Tax Court refused to impose the Commissioner’s requested penalties under Internal Revenue Code § 6659 for tax underpayments attributable to valuation overstatements. The Commissioner appeals that determination. We affirm.

I

Beginning in 1980, FoodSource, Inc. sold investors interests in refrigerated food containers. The…