- 5 -
been approximately $965,425.00 (see exhibit A).
Throughout the negotiations ATO was represented by the
taxpayer, as director of the company, and the attorney
instructed by ATO, Mr. Danny Glasner. Mr. Glasner
accepted a non-negotiable check in the sum of 575,000
pounds sterling payable to Maxwell Glasner & Company
client account. The check was handed to Mr. Glasner,
who accepted the check on behalf of ATO. On May 7,
1987, the taxpayer instructed Mr. Glasner to obtain, on
behalf of ATO, a bankers draft drawn in favor of the
Swiss Bank Corporation. The draft was to be in the sum
of 570,000 pounds sterling with 5,000 pounds sterling
having been deducted from the settlement figure and
retained by Maxwell Glasner & Company. Later the same
date the taxpayer, as director of ATO, confirmed by
letter to Maxwell Glasner & Co. the receipt of a
bankers draft in the sum of 570,000 pounds sterling
payable to the Swiss Bank Corporation in accordance
with previous instructions from ATO the same date. The
accounts of ATO included no receipt of the 570,000
bankers draft or any reference whatsoever to the
settlement reached with Kenning, or to the 570,000
received in settlement. Likewise, the taxpayer's
personal individual income tax return for the 1987 tax
year includes no receipt of the same or reference
whatsoever to the settlement. The government has made
an adjustment to the taxpayer's 1987 gross income in
the amount of $965,425.00 reflecting his receipt of the
lawsuit settlement.
Respondent also gave petitioner a detailed analysis of
respondent's position on the facts and law in the 15-day letter.
On March 17, 1995, petitioner filed an Application for
Taxpayer Assistance Order, Form 911, in which petitioner asked
respondent to show that he received any economic benefit from the
settlement funds and that he be given an Appeals Office
conference. Petitioner asked for an investigation for violations
under Bivens v. Six Unknown Named Agents, 403 U.S. 388 (1971)
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