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B. Revival of 7-Percent Settlement Offer
In January 1993, Mr. O'Neill notified all known Kersting
nontest case petitioners that the Commissioner would settle their
cases on a basis "consistent with the original project settlement
offer that was extended to Kersting investors before the trial
of the test cases": A 7-percent reduction of the deficiency,
elimination of all additions to tax, and interest imposed at the
normal rate prescribed in section 6621; the burnout feature was
not provided for. The settlement offer, which was extended for
only 60 days, was accepted by a few Kersting petitioners.
C. Disciplinary Actions
On July 29, 1993, Mr. Sanchez sent Notices of Proposed
Disciplinary Action to Messrs. Sims and McWade. The notices
asserted that Messrs. Sims and McWade had violated:
(1) Department of the Treasury Minimum Standards of Conduct,
section 0.735-30(a)(2) (an employee shall avoid any action which
might result in or create the appearance of giving preferential
treatment to any person); (2) Department of the Treasury Minimum
Standards of Conduct, section 0.735-30(a)(6) (an employee shall
avoid any action that might adversely affect the confidence of
the public in the integrity of the Government); and (3) Internal
Revenue Service Rule of Conduct 214.5 (an employee will not
intentionally make false or misleading verbal or written
statements in matters of official interest). The notices
proposed to suspend both Messrs. Sims and McWade for 14 calendar
days without pay.
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