Garry F. Bettencourt and Phyllis C. Bettencourt - Page 4




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               In a letter to Mr. Read dated July 12, 1996, from                      
          respondent's Appeals Office, respondent informed Mr. Read that it           
          was thought that the case might be resolved by mail.  The letter            
          further read:                                                               
                    I have a copy of the June 18, 1987 decree issued                  
               by Judge Libbey.  However, the administrative file did                 
               not contain copies of the March 8, 1989 and/or December                
               22, 1989 modifications as described in your letter of                  
               June 3, 1995.  Please submit complete copies of these                  
               orders as well as any subsequent to the 1989 order                     
               (sic).  Once I receive the orders, I will call you to                  
               discuss my findings.                                                   
               A letter dated August 6, 1996, from Mr. Read to respondent's           
          Appeals Office reads, in part:                                              
                    Thank you for your letter of July 12, 1996.  I am                 
               pleased to learn that you believe this case can be                     
               settled by mail.  I would have responded sooner, but I                 
               have been on vacation.                                                 
                    I enclose copies of the March 18, 1989 and                        
               December 22, 1989 orders you requested.  I know of no                  
               other orders affecting support that were issued between                
               the December 22, 1989 order and the end of tax year                    
               1993.                                                                  
               In a letter to Mr. Read dated August 13, 1996, respondent's            
          Appeals Office forwarded to Mr. Read a proposed stipulation-                
          decision document in which respondent conceded the case for the             
          year 1993.                                                                  
               In a letter pertaining to their 1994 tax year, respondent              
          forwarded to petitioners a report of examination which disallowed           
          the alimony deduction claimed on their 1994 joint Federal income            
          tax return.  Respondent's disallowance of the 1994 claimed                  
          alimony deduction mirrored respondent's 1993 disallowance of the            
          similarly claimed alimony deduction.                                        


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