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Introduction
These consolidated cases are part of a group of more than
1,300 remaining cases--more than 500 cases have settled--arising
from respondent's disallowance of interest deductions claimed by
participants in various tax shelter programs promoted by Henry
F.K. Kersting (Mr. Kersting). The Kersting group of cases
(hereinafter the Kersting project) was assigned to Judge
William A. Goffe (Judge Goffe) for disposition. By agreement of
the parties and the Court, the merits of the Kersting programs
were to be litigated in a consolidated trial of 14 docketed cases
of eight petitioners that had been designated as "test cases".
The vast majority of the remaining Kersting project petitioners
signed stipulations to be bound (sometimes referred to herein as
piggyback agreements) in which they agreed with respondent that
their cases would be resolved in accordance with the Court's
opinion in the test cases.
Before the trial of the test cases, some test case
petitioners argued that a 1981 search of Mr. Kersting's office
had been illegal, that materials seized during the search should
be suppressed in the test case proceedings, and that the burden
of proof and burden of going forward with evidence should be
shifted to respondent. In Dixon v. Commissioner, 90 T.C. 237
(1988) (Dixon I), the Court held, in an opinion by Judge Goffe,
that the petitioners had failed to establish standing to contest
the Kersting search and seizure.
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