- 9 -
lead counsel. The Court then discharged them from their
responsibilities as lead counsel.
A letter from Mr. Berman to Ms. Kaplan dated April 21, 1988,
states:
Enclosed please find a copy of an Internal
Revenue Service Memorandum, dated April 1,
1988, concerning the Arbitrage Management
("AMIC") settlement position. Mr. Kletnick has
agreed that you or any taxpayer who invested
through AMIC may use this memo when attempting
to have an Arbitrage Management statutory
notice rescinded.
The attached Internal Revenue Memorandum, dated April 1, 1988, sent
to all IRS offices from Regional Counsel, North Atlantic Region (Ms.
Vorsanger), states in pertinent part:
We have received authorization to disseminate settlement
guidelines with respect to Arbitrage Management
Investment Company cases. The basic agreement is that
the taxpayers are entitled to 20 percent of the tax
stake, or cash + 15 percent if greater. The Service is
entitled to 80 percent. A proper allocation by year is
required. Within this basic agreement, we have devised
the methodology, outlined below, which is different for
individual investor and partnership case.
* * * * * * *
Penalties described in I.R.C. Sections 6653, 6659 will
not be imposed.
E. Implementation of the Settlements
Although the parties had settled the issue of the deductibility
of the Arbitrage Management losses, the settlements still needed to
be implemented. Under the settlements, most taxpayers had
deficiencies in earlier years and overpayments in later years.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011