Vincent and Clotilde Farrell, Jr. - Page 11

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          under section 6621; and (4) execution of a closing agreement                
          (Form 906) stating the settlement and resolving the entire matter           
          for all years.  Petitioners assert that the Plastics Recycling              
          project settlement offer was extended to them, but they do not              
          claim to have accepted the offer timely, so they effectively                
          rejected it.                                                                
               In December 1988, the Miller cases were disposed of by                 
          settlement agreement between the taxpayers and respondent, and              
          attorney Richard S. Kestenbaum executed the settlement on behalf            
          of the Millers.  This Court entered decision documents based upon           
          those settlements on December 22, 1988.  The settlement provided            
          that the taxpayers in the Miller cases were liable for the                  
          addition to tax under the provisions of section 6659 for                    
          valuation overstatement, but not for the additions to tax under             
          the provisions of sections 6661 and 6653(a).  The increased                 
          interest under section 6621(c), premised solely upon Miller's               
          interest in the recyclers for the taxable years at issue, was not           
          applicable because Miller made payments prior to December 31,               
          1984, so no interest accrued after that time.  Respondent did not           
          notify petitioners or any other taxpayers of the disposition of             
          the Miller cases.  Estate of Satin v. Commissioner, T.C. Memo.              
          1994-435; Fisher v. Commissioner, T.C. Memo. 1994-434.8                     

          8    Respondent attached copies of the Miller closing agreement             
          and disclosure waiver to her objection to petitioners' motion for           
          leave.  Petitioners do not dispute the accuracy of the document             
                                                             (continued...)           




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