- 35 -
Davenport's recycling activity for the years 1982 through 1985.
On May 2, 1988, copies of the cover letter accompanying the
examination report, and the report itself were mailed to all
other partners of Davenport, including participants. In response
to respondent's examination report, Winer's attorney, Hack, filed
a protest with the IRS on behalf of Winer in which Winer argued
that Davenport was a for-profit venture and that the recyclers
were not grossly overvalued. Winer did not allege that he was
not the TMP or that he had been enjoined from serving as TMP.
I. The Plastics Recycling Project Settlement Offer
After the protest was filed, the Davenport Recycling case
was assigned to IRS Appeals Officer Nelson Leduc (Leduc). In an
October 21, 1988, letter from Leduc to Winer, respondent made the
Plastics Recycling Project Settlement Offer to Davenport and the
other TEFRA partnerships of which Winer was general partner. The
settlement offer was mailed to Winer as TMP of Davenport at
Davenport's business address and at Winer's home address. Leduc
sent blank copies of the offer letter to Winer for his
convenience, so that Winer could forward to each notice partner
the details of the Government's offer. The terms of the
settlement offer were as follows: (1) The investor would be
allowed a deduction for 50 percent of his cash invested in the
year of investment; (2) no business or energy tax credits would
be allowed; (3) the investor would concede the overvaluation
penalty under section 6659 at the 30-percent rate; (4) the
Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 NextLast modified: May 25, 2011