Cinema '85, Richard M. Greenberg, Tax Matters Partner - Page 5

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          determining adjustments to partnership items for the 1985 through           
          1989 partnership taxable years.  On February 28, 1992, the TMP              
          timely filed a petition with this Court on behalf of the                    
          partnership for readjustment of the partnership items.  At the              
          time the petition in this case was filed, the partnership's                 
          principal place of business was located at Greenwich,                       
          Connecticut.                                                                
               After the filing of the petition in this case, Mr. Long                
          again wrote to Mr. Faber on the subject of the Greenberg Brothers           
          project, listing Cinema '85 in the subject portion of the letter.           
          The letter dated September 9, 1992, stated:                                 
               We are offering to settle the above referenced movie tax               
               shelters on the basis of an "at risk" settlement under                 
               I.R.C. [sec.] 465.  For purposes of the settlement taxpayers           
               are considered at risk to the extent of their initial cash             
               investment in the movie, with no amounts allowed for notes             
               executed by the partnership, or the assumption agreement               
               executed by the partners.  After the cash is used up the               
               amount at risk is zero.  However, to the extent the                    
               partnership earns net income in later years, the amount at             
               risk will be increased in accordance with I.R.C. [sec.] 465.           
                    For the purposes of settlement the respondent will                
               concede all additions to tax, but respondent will not                  
               concede additional interest under I.R.C. [sec.] 6621(c).               
                    You have thirty days to accept this settlement offer.             
               After said date it is withdrawn.                                       



               4(...continued)                                                        
          partnership items the equivalent of the statutory notice of                 
          deficiency in other cases.  Sirrine Bldg. No. 1 v. Commissioner,            
          T.C. Memo. 1995-185, affd. without published opinion 117 F.3d               
          1417 (5th Cir. 1997).                                                       




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