Vincent and Clotilde Farrell, Jr. - Page 10

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                    5.  A decision shall be submitted in this case when the decision  
               in the CONTROLLING CASE (whether litigated or settled) becomes final   
               under I.R.C. sec. 7481;                                                
                    6.  If the CONTROLLING CASE is appealed, the petitioner(s)        
               consent(s) to the assessment and collection of the deficiency(ies),    
               attributable to the adjustment(s) formulated by reference to the Tax   
               Court's opinion, notwithstanding the restrictions under I.R.C. sec.    
               6213(a);                                                               
                    7.  The petitioner(s) in this case will testify or provide        
               information in any case involving the same tax shelter adjustment, if  
               requested; and                                                         
                    8.  The petitioner(s) in this case consent(s) to the disclosure   
               of all tax returns and tax return information for the purpose of       
               respondent's discovering or submitting evidence in any case involving  
               the same shelter adjustment(s).                                        
               On or about February of 1988, a settlement offer (the                  
          Plastics Recycling project settlement offer or the offer) was               
          made available by respondent to all docketed Plastics Recycling             
          cases, and subsequently to all nondocketed cases.  Baratelli v.             
          Commissioner, T.C. Memo. 1994-484.7  Pursuant to the offer,                 
          taxpayers had 30 days to accept the following terms:                        
          (1) Allowance of a deduction for 50 percent of the amount of the            
          cash investment in the venture in the year(s) of investment to              
          the extent of loss claimed; (2) Government concession of the                
          substantial understatement of tax penalties under section 6661              
          and the negligence additions to tax under section 6653(a)(1) and            
          (2); (3) taxpayer concession of the section 6659 addition to tax            
          for valuation overstatement and the increased rate of interest              


          7    The record does not include a settlement offer to                      
          petitioners.  Petitioners have attached to their motion for                 
          decision a copy of a settlement offer to another taxpayer with              
          respect to a plastics recycling case.  Respondent has not                   
          disputed the accuracy of the statement of the plastics recycling            
          settlement offer.                                                           




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