Bernhard F. and Cynthia G. Manko - Page 26

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          authorizes Regional Counsels in nondocketed cases to enter into             
          agreements with taxpayers.  Paragraph 5 of the Delegation Order             
          authorizes Regional Counsels in docketed cases under their                  
          jurisdiction "to enter into and approve written agreements with any         
          person relating to the Internal Revenue tax liability of such               
          person * * * in respect to related specific items affecting other           
          taxable periods." (Emphasis added.)                                         
               It is clear from both the documentary evidence and the                 
          testimony of Messrs. Kletnick and Berman that the settlement                
          agreement and terms thereof were authorized by respondent's                 
          National Office.  The decision to make a blanket settlement offer           
          was made by James J. Keightley, respondent's Associate Chief                
          Counsel (Litigation), who instructed that it be made. His                   
          instruction was "flown through" Agatha Vorsanger, respondent's              
          North Atlantic Regional Counsel, and Mr. Kletnick confirmed the             
          settlement to this Court in the name and on behalf of Ms.                   
          Vorsanger.6  Pursuant to Delegation Order No. 97, both Ms.                  


               6    The following colloquy took place between the Court and           
          Mr. Berman during the trial of the case herein:                             
                    THE COURT:   And how did that breakthrough                        
                    come about? Did the national office,                              
                    specifically Mr. Keightley, in any way                            
                    influence the breakthrough?                                       
                    THE WITNESS (Berman):  My recollection, your                      
                                                              (continued...)          






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