Benness M. Richards and Jane Richards - Page 7

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          Petitioners did not file a notice of appeal or a timely                     
          motion to vacate or revise the decision entered May 8, 1987.                
          Consequently, the decision became final on August 6,                        
          1987, 90 days after the decision was entered.  Sec. 7481(a)(1).             
               During the period that petitioners' case was docketed with             
          the Court, 14 dockets and 8 petitioners with Kersting-related               
          adjustments were selected as "test" cases for trial.7  Mr. McWade           
          served as respondent's lead counsel during the trial of the test            
          cases.  One of the taxpayers selected as a test case, John                  
          Thompson, was represented at trial by Mr. DeCastro.                         
          Following a trial on the merits of the test cases, the Court                
          issued its Memorandum Opinion sustaining virtually all of                   
          respondent's determinations in each of the test cases.  See Dixon           
          v. Commissioner, T.C. Memo. 1991-614 (Dixon II).  As a                      
          preliminary matter, the Court rejected the test-case taxpayers'             
          argument, similar to that raised here, that the notices of                  
          deficiency issued to them were null and void on the ground that             
          the Commissioner failed to make a determination as required by              
          Scar v. Commissioner, 814 F.2d 1363 (9th Cir. 1987), revg. 81               

          7  More than 1,800 cases were filed with this Court by                      
          participants in the Kersting plans seeking redeterminations of              
          the deficiencies determined by respondent (the Kersting group).             
          The bulk of the more than 1,300 remaining docketed cases in the             
          Kersting group are covered by "piggyback agreements" in which the           
          taxpayer(s) and respondent stipulated to be bound by the Court's            
          opinion in the test cases.  Hundreds of non-test cases in the               
          Kersting group have been disposed of, like the case at hand, by             
          entry of a stipulated decision.                                             




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