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available to all taxpayers at all points in time the most
favorable settlement terms that were offered to any taxpayer.
More specifically, petitioners allege --
(1) that the settlements that were agreed to in the
instant cases were premised on the erroneous fact that
no better settlements were available to the taxpayers;
(2) that because of the express language of section
6224(c)(2), the TEFRA partnership settlement procedures
apply to partnerships for all years, once partnerships
are subject to the general TEFRA partnership provisions
for any year;
(3) that, during 1994 and later years, when petitioners
entered into their settlements for the pre-TEFRA years
(1979-1982), petitioners and their counsel allegedly
were not notified by respondent of the prior, more
favorable cash settlements that other taxpayers during
1986, 1987, and 1988 had agreed to; and
(4) that (because of (2) above) the Elektra/Hemisphere
tax shelter partnerships’ pre-TEFRA years effectively
became, or should be treated as becoming, subject to
the TEFRA partnership settlement procedures. Thus,
petitioners herein allege that during 1994 and later
years they should have been allowed to settle their
cases consistent with the most favorable settlement
terms offered to any other taxpayers at any time.
Petitioners allege the existence of "a pervasive and
manufactured conspiracy" among respondent’s counsel to deprive
them and other taxpayers of the TEFRA settlement procedures for
pre-TEFRA years. Petitioners allege that the defective
settlement procedures that were utilized to settle the instant
cases also affected some 2,000 other settlement agreements and a
total of 12,000 case dispositions.
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Last modified: May 25, 2011