- 24 - The remaining elements of petitioners' theory of fraud upon the Court merit little discussion. Petitioners assert that respondent deliberately concealed that respondent had fraudulently obtained “jurisdiction” over Kersting investors, including petitioners, and then forced the many taxpayers so affected into settlement or trial. As discussed above, we reject the notion that respondent fraudulently obtained jurisdiction over petitioners. We have no reason to doubt that all information necessary for petitioners to contest the validity of the notice of deficiency, i.e., petitioners' 1978 tax return and the notice of deficiency, was readily available to petitioners at the time the notice of deficiency was issued.14 Finally, it is evident that any misconduct of Mr. McWade in arranging settlements with Messrs. Thompson, Cravens, and Alexander as part of the test case proceedings bears no relation to the stipulated settlement that petitioners entered into in this case. 14 Indeed, Mr. Nevels included allegations in the petition that the notice of deficiency was arbitrary. Further, allegations were raised in the test cases that the notices of deficiency issued to the test case taxpayers were invalid due to the use of materials seized from Mr. Kersting at the same time that Mr. DeCastro was engaged in settlement negotiations with Mr. McWade respecting petitioners' case. Although the record does not disclose whether Mr. DeCastro pursued this particular point with Mr. McWade, we note that petitioners do not allege, and there is no evidence in the record, that the issue was not raised because of any collusion or fraud.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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