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Costello’s petition to this Court, filed August 13, 1990,
disagreed with the adjustment and requested that the case be held
in suspense until the outcome of the Wall Street examination. At
the time Costello executed the petition, he had become aware that
there may be some question about whether he was authorized to be
Cascade’s TMP. In spite of this recognition, Costello signed the
petition to this Court containing the allegation that it was
filed by him in his capacity as Cascade’s TMP. By an August 13,
1990, order of this Court, the caption of this case was changed.
The original caption (as shown on the petition) reflected “James
M. Costello and Margaret C. Costello” as petitioners. The order
changed the caption to reflect “Cascade Partnership, James M. and
Margaret C. Costello, Tax Matters Partner”. On March 27, 1995,
almost 5 years later, petitioner moved to amend its petition in
order to plead that the assessment period had expired prior to
the time respondent mailed the FPAA in this case. Thereafter,
the parties each moved for partial summary judgment.
Walsh had not been formally designated as Cascade’s TMP, and
he had not received a power of attorney from Cascade or its
partners for the specific purpose of representing the partnership
before respondent. Costello, although a general partner of
Cascade, had not been expressly designated as Cascade’s TMP, and
he was not the partner with the largest partnership interest.
Costello held himself out as an agent of Cascade and permitted
respondent to believe that he was Cascade’s TMP. Respondent’s
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