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February 8, 1995 (the original settlement agreement). Each
original settlement agreement is contained on a Closing Agreement
On Final Determination Covering Specific Matters (Form 906), and
the essential provisions (excluding the names of each
partnership, the names of the settling partners, the partnership
taxable years involved, and the actual dollar amounts contributed
to each partnership) are identical.
Among the key provisions of the various original settlement
agreements are the following:
1. No adjustment to the partnership items shall be
made for the taxable years [in issue] for purposes of this
settlement.
2. The taxpayers are entitled to claim their
distributive share of the partnership losses for [the years
in issue] only to the extent they are at risk under I.R.C.
[sec.] 465.
3. The taxpayers amount at risk for [the years in
issue] is their capital contribution to the partnership.
* * * * * * *
6. The taxpayers are not at risk under I.R.C. [sec.]
465 for any partnership notes, entered into by the
partnership to acquire rights in the motion picture * * *
whether or not assumed by the taxpayers. Any losses
disallowed under this agreement are suspended under I.R.C.
[sec.] 465. Such suspended losses may be used to offset the
taxpayers pro rata share of any income earned by the
partnership and/or other income in accordance with the
operation of I.R.C. [sec.] 465.
Pursuant to section 6224(c)(2), participants timely
requested consistent settlement terms respecting partnership
items of the partnerships. Participants seek to avail themselves
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Last modified: May 25, 2011