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and Costello agreed to be the signing partner. Costello signed
the Form 872-O on February 13, 1986, and returned it to
respondent’s agent. Costello signed the Form 872-O on the line
designated for the tax matters partner (TMP), rather than the one
designated for a representative of the partnership, because he
was a general partner of Cascade. Costello did not do any
research to determine if he was or was not authorized to sign as
TMP and/or on behalf of Cascade or its other partners. During
March 1986, Walsh received a copy of the Form 872-O that had been
counter-executed on behalf of respondent on March 4, 1986.
By a March 11, 1988, letter addressed to Cascade, in care of
Costello as TMP, respondent transmitted a summary report of the
examination that contained a single adjustment disallowing
$1,083,338 of pass-through loss claimed through Wall Street. The
letter also directed Costello, as TMP, to provide a copy of the
summary report to the other partners. Costello, in an April 5,
1988, letter, corresponded with respondent, advising that Wall
Street’s examination was at the Appeals level and, because of
Cascade’s pass-through status, petitioner chose not to attend a
closing conference. Petitioner protested with respect to the
summary report in a September 27, 1988, document that was signed
by Costello as TMP. Respondent’s agents continued to send
correspondence to Costello addressed to him as Cascade’s TMP.
Costello received a May 14, 1990, FPAA containing a determination
disallowing the pass-through loss claimed through Wall Street.
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