Jerry and Patricia A. Dixon, et al - Page 103




                                       - 184 -                                        

               Mr. DeCastro testified that Mr. McWade considered various              
          elements in negotiating settlements in Kersting cases, including            
          the level of the taxpayer's participation in the Kersting                   
          programs and whether the taxpayer had escaped liability in other            
          years by virtue of the expiration of the period of limitations.             
               Mr. DeCastro denied passing any information to                         
          Messrs. McWade or Sims regarding Mr. Izen's trial strategy or               
          that he otherwise acted as a "mole" or "plant" for respondent               
          with respect to the Kersting test cases.                                    
               7.   Mr. Izen                                                          
               Mr. Izen was the first witness to testify at the evidentiary           
          hearing.                                                                    
               Mr. Izen testified that he had several discussions with                
          Mr. DeCastro, beginning with Mr. Kersting's deposition in October           
          1988 through the eve of the trial of the test cases, during which           
          he revealed his trial strategy to Mr. DeCastro.  Mr. Izen                   
          testified that he attempted to "enlighten" Mr. DeCastro, who was            
          openly pessimistic regarding the chances for success in the trial           
          of the test cases.                                                          
               Mr. Izen testified that Mr. DeCastro was upset on the eve of           
          trial of the test cases that all documentation needed to support            
          the test case petitioners' position had not been made available             
          to petitioners.  Mr. Izen testified that he did not serve a                 
          subpoena on Mr. Kersting before the trial of the test cases                 
          because he had relied upon the subpoena that Mr. McWade had                 
          served on Mr. Kersting.                                                     

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