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taxpayer or taxpayer's representative in any Kersting project
case."
On or about June 11, 1992, Mr. Sanchez decided that
Messrs. Sims and McWade should no longer have any authority over
the Kersting cases. At that time, Mr. Bakutes reassigned all 14
test case dockets to Mr. Dombrowski, and all the nontest cases in
the Kersting project to Mr. O'Neill. On June 12, 1992,
Mr. Sanchez informed Mr. Sims that he had withdrawn Mr. Sims'
delegation of authority to settle any matters relating to the
Kersting project, and that management of the Kersting project was
reassigned to Mr. Bakutes.
While Mr. Bakutes was carrying out his orders from
Mr. Sanchez, Mr. Jordan directed two senior attorneys in the Tax
Litigation Division in the National Office, Thomas J. Kane
(Mr. Kane), and Steven M. Miller (Mr. Miller), to investigate the
Thompson settlement on behalf of the National Office.
Messrs. Kane and Miller conducted in-house depositions and
interviewed various individuals who had participated in the test
case trial and the Thompson settlement. Mr. Bakutes directed
Mr. Dombrowski to provide information to aid Messrs. Kane and
Miller in their investigation.
E. Disclosure of Cravens Settlement
The Cravens case for the 1980 taxable year was the only test
case that required a computation for entry of decision under Rule
155. The computation was required in order to account for the
capital gain that the Cravenses had reported for 1980 on their
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