- 101 -
On October 31, 1986, Mr. Cravens again wrote to Mr. Seery
with questions about the settlement offer. In the letter,
Mr. Cravens informed Mr. Seery that he had paid a cash bond
against the deficiency for 1979 and felt "in good shape for that
year." Mr. Cravens then asked whether respondent's determination
to include a dividend in his income for 1980 would be eliminated
to reduce the deficiency for that year. If so, Mr. Cravens
indicated that he would pay the amount that would be due, "and
not take the gamble on the courts" since the amount due would be
"catastrophic" if he lost. In closing, Mr. Cravens offered to
pay Mr. Seery for the extra effort on his case, and reminded him
that the deadline for accepting the settlement offer was drawing
near.
As previously mentioned, Mr. Seery began to withdraw as
counsel for test case petitioners following the Court's
November 14, 1986, order indicating that Mr. Seery might have a
conflict of interest.
Sometime after receiving Mr. McWade's October 28, 1986,
letter, Mr. Cravens contacted Mr. McWade by telephone with the
intent of settling his case. Mr. Cravens took notes of his
conversation with Mr. McWade, which indicate that they discussed:
(1) Eliminating the dividend adjustment for 1980; (2) eliminating
all penalties for both 1979 and 1980; (3) backing out the tax
already paid with respect to the capital gains that the Cravenses
had reported for 1980; and (4) eliminating statutory interest for
1979. Mr. McWade told Mr. Cravens that he would call him back
Page: Previous 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 NextLast modified: May 25, 2011