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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After said date it is withdrawn.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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