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2.6 The parties have discussed a
settlement plan which consists of Phase I and Phase II
as follows:
(a) Phase I--This phase involves
(i) the execution of this Settlement Plan Agreement
establishing the principles upon which a final
settlement agreement will be achieved and (ii) actual
verification of tax due in accordance with the
principles established under the Settlement Plan
Agreement. Verification shall be conducted on an
expedited basis.
(b) Phase II--Phase II shall
involve (i) drafting and execution of a final
settlement agreement, (ii) communication to investors
of the settlement proposal by SCHULMAN, (iii)
implementation of the Partnership adjustments upon
acceptance by the investors, (iv) final determination
of SCHULMAN promoter income, and (v) formation of * * *
[a specified] Trust * * *.
The "SETTLEMENT PLAN" section of the agreement stated:
3.1 IRS shall allow each investor to
deduct seventy percent (70%) of the claimed Investor
First Year Deduction. * * * The disallowed portion of
the Investor First Year Deduction [thirty percent
(30%)] shall be deducted by each investor ratably over
the term of the Schulman Partnership Long Term Notes *
* *.
The "CONDITIONS" section of the agreement added:
4.2 * * * This Settlement Plan Agreement
is intended to be used for settlement purposes only and
both IRS and SCHULMAN agree that the Agreement,
discussions held prior to and in connection with the
Agreement, and all schedules and materials previously
submitted by SCHULMAN to the Appeals Office (before the
date of the execution of this Agreement) in connection
with the settlement discussions shall not be used in
any manner whatsoever in any administrative or court
proceeding. * * *
Petitioner reviewed the agreement during the negotiation process
and was thoroughly familiar with its terms and conditions.
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Last modified: May 25, 2011