- 305 -
Moreover, the Court has disclosed the contents of a number of the
disputed documents in this opinion. Considering all the facts
and circumstances, we will lift the protective orders dated
June 10 and 26, 1996.
XI. Sanctions
The Court has inherent power "to protect our own process
from abuse, oppression, and injustice." Griffith v.
Commissioner, T.C. Memo. 1988-123 (citing Gumbel v. Pitkin, 124
U.S. 131, 145-146 (1888), and Eash v. Riggins Trucking Inc., 757
F.2d 557 (3d Cir. 1985) (en banc)).
Messrs. Sims' and McWade's misconduct in the trial of the
test cases has caused a substantial delay in the resolution of
Kersting project cases. Considering the unique circumstances of
these cases, and the harm resulting from the Government
misconduct in the trial of the test cases, we consider this is an
appropriate occasion for the Court to impose limited sanctions
against respondent under Rule 123(a). See Vermouth v.
Commissioner, 88 T.C. 1488 (1987) (discussing and relying on
United States v. Sumitomo Marine & Fire Ins. Co., 617 F.2d 1365
(9th Cir. 1980)); see also Betz v. Commissioner, 90 T.C. 816, 823
(1988).
Respondent determined that Kersting program participants are
liable for additions to tax for negligence under section 6653.
For the taxable years 1981 through 1985, section 6653(a)(2)
provides that the addition to tax for negligence includes a
component equal to 50 percent of the interest due on the
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