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Mr. Newman was never involved directly in the settlement
negotiations. Those negotiations were done by Messrs. Long,
Faber, and Noumair. Mr. Long testified that he intended that in
order to consummate any settlement with the partners, a Form 870
and/or a closing agreement would be executed by the partner or
the partner's representative. This was consistent with Mr.
Faber's understanding when he was involved with the case that
further documents would have to be executed. The only other
person with direct knowledge of what happened during this time
was Mr. Noumair, and he did not testify. We have no reason to
believe, however, that his testimony would have been different
and, indeed, his June 24, 1993, memorandum to the limited
partners and his November 30, 1993, letter to Mr. Long recognized
that further documents were required. Although there may have
been a general understanding of the terms of the settlement, to
effectuate the settlement it was understood that the partner
would execute either a Form 870 or a closing agreement.
Furthermore, all the parties understood that the settlement
terms were not limited to the Greenberg Brothers cases that were
currently before the Court. It also included issues involving
the additions to tax that are affected items and the applicable
interest, issues that were not before the Court. Moreover, the
settlement terms dealt with the tax effects of the Greenberg
Brothers partnerships in future years. At that time, Mr. Long
was of the opinion that either a closing agreement or a Form 870
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