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the DuFresnes were liable for such increased interest for the
taxable years 1982 and 1983. In short, Judge Goffe sustained
these determinations on the ground that the Court had already
determined that the test case petitioners' underpayments were
attributable to sham transactions. Consistent with our finding
that Mr. Thompson's testimony was not material to Judge Goffe's
conclusion that the Kersting transactions were shams, we are
convinced that Mr. Thompson's testimony was not material to Judge
Goffe's decision to sustain respondent's determinations
respecting increased interest.
Although Judge Goffe also sustained respondent's
determinations that the Thompsons were liable for an addition to
tax for late filing under section 6651(a)(1) for 1981 and
additions to tax for negligence for the taxable years 1979 and
1981, these holdings have no bearing on nontest case petitioners.
In particular, nontest case petitioners who signed 1985 piggyback
agreements did not agree to be bound by the Court's holdings
regarding additions to tax. Further, while nontest case
petitioners who signed post-1985 piggyback agreements agreed to
be bound by the Court's holding regarding test case petitioners'
liability for increased interest under section 6621(c), they did
not agree to be bound by the Court's holding regarding test case
petitioners' liability for additions to tax under section 6651(a)
and they were to be relieved of liability for additions to tax
for negligence for years before 1982.
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