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L. Reversal and Subsequent Developments
On or about November 8, 1996, and after some prodding by
petitioners, respondent filed a motion with the Court of Appeals
asking that the Tax Court's Decision entered on January 31, 1996,
be reversed on the basis of Adler v. Commissioner, 86 F.3d 378
(4th Cir. 1996). Shortly thereafter, on November 14, 1996, the
Court of Appeals issued an order granting respondent's motion and
reversing our Decision.
No later than November 22, 1996, respondent's counsel
undertook action to suspend any further collection in respect of
the May 1996 assessment against petitioners, pending abatement of
such assessment and the refund of amounts previously paid.
Respondent's counsel specifically advised respondent's problem
resolution officer for the Delaware-Maryland district that "Mr.
Wittstadt no longer owes the deficiency for 1989" and directed
the officer to "take whatever steps [are] necessary to terminate
the required payment agreement." Nevertheless, during the fall
of 1996, petitioners incurred costs in trying to have collection
terminated.
On January 9, 1997, the record in this case was returned by
the Court of Appeals and received by this Court. Thereafter, by
Order dated January 28, 1997, the Court vacated the Decision
entered January 31, 1996, and directed the parties either to
furnish an agreed form of decision suitable for entry of decision
by the Court or to move for such relief as they thought might be
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