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trial and you do not appear for trial, your case will
likely be dismissed and you will be required to pay all
of the income tax which the government contends you
owe, plus interest thereon as provided by law.
William A. Goffe
Judge
In November 1986, the Court issued orders notifying Kersting
petitioners who had not filed piggyback agreements that their
cases were set for trial at the Maui session. As additional
Kersting project cases were docketed and identified, the Court
issued orders setting them for trial at the Maui session, subject
to being stricken if the parties executed a piggyback agreement.
B. Piggyback Agreements
As early as June 1985, Kersting program participants had
begun executing piggyback agreements (1985 piggyback
agreements),24 drafted by Messrs. McWade and Seery, that stated
as follows:
Stipulation of Settlement for Tax Shelter Adjustments
With respect to all adjustments in respondent's
notice of deficiency relating to the Kersting interest
deduction tax shelter(s), the parties stipulate to the
following terms of settlement:
1. The term Kersting programs refers to interest
expense deductions or other related deductions
associated with various programs promoted by Henry
Kersting.
2. The Kersting program deduction adjustments
shall be redetermined on the same basis that the same
program adjustments are resolved with respect to
taxpayers trying the same program adjustments at the
24 Before 1987, there was no uniform format for piggyback
agreements. In 1987 or early 1988, respondent's Tax Shelter
Branch issued a standard form of piggyback agreement.
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