- 6 - envisioned by section 1.612-3(b), Income Tax Regs. Bauman I involved taxable years 1979, 1980, and 1981. Bauman v. Commissioner, supra. Subsequent to this Court’s decision in Bauman v. Commissioner, supra, we decided Coggin v. Commissioner, T.C. Memo. 1993-209, affd. 71 F.3d 855 (11th Cir. 1996) (occasionally the Coggin case). The Coggin case was among a number of cases included in respondent’s national litigation project entitled McIntyre-CN. Like Bauman in the instant case, the taxpayer in the Coggin case was a limited partner in ERL. As a majority of the facts in the Coggin case are identical to the facts in the instant case, the parties have stipulated pertinent parts of the record in the Coggin case. As a result of Bauman’s investment in ERL, petitioners claimed certain losses and credits on their Federal income tax returns for 1980, 1981, and 1982. Respondent determined that ERL was a sham, engaged in solely for the resulting tax benefits, and disallowed the losses and credits claimed by petitioners for each year at issue. Energy Resources, Ltd. ERL was a Tennessee limited partnership. It operated under the accrual method of accounting. Investors were solicited through a private placement memorandum (the offering memorandum or offering materials) dated October 1, 1980. The offering materials explained that ERL was organized to lease (the lease)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011