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Michigan law, a partnership must be renewed after a certain
period of time or it will expire. Lichtenstein did not renew DL
& Associates' status as a partnership.
G. The Modified Injunction
Miller had received a copy of the February 1986 Final
Consent and Permanent Injunction from Winer. Sometime in late
April or early May 1986, Miller read the proposed TEFRA
partnership regulations which had been reprinted in the April 17,
1986, issue of the Daily Tax Report, a publication of the Bureau
of National Affairs. After reviewing the proposed TEFRA
partnership regulations, Miller, on May 6, 1986, wrote to Winer
regarding Winer's settlement of his section 7408 injunction case
with the United States. Miller also sent copies of this letter
to Fieldstone and Davis.
In his letter, Miller informed Winer that he believed
Winer's settlement of the section 7408 injunction proceeding
action was invalid because: (1) Winer had not resigned as TMP in
accordance with the proposed TEFRA partnership regulations; and
(2) only general partners could be designated as TMP's. It was
Miller's belief that certain provisions in the proposed
regulations:
confirm that what you did in the settlement process is
probably invalid and, should the Proposed Regulations
be promulgated in the form in which they are proposed,
certain additional steps will have to be taken before
your resignation as tax matters partner can be
effective and before the successor tax matters partner
can be properly designated.
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