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On December 30, 1986, Mr. Thompson sent a letter to
Mr. McWade enclosing checks for $34,000 and $25,545 that were
intended as payments of interest on the Thompsons' tax
liabilities for the taxable years 1980 and 1981, respectively.44
2. First Revision of Thompson Settlement
On January 27, 1987, Mr. Huestis sent a letter to
Mr. DeCastro stating that Mr. Thompson did not understand the
terms of his settlement. On February 3, 1987, Mr. DeCastro
responded to Mr. Huestis as follows:
Dear Sam:
Thanks for your letter of January 27, 1987
indicating questions which Jack Thompson has regarding
the proposed settlement. I will respond in the order
of your questions:
1. The only years in dispute are 1979, 1980 and
1981.
2. For each year, the amounts claimed due by the
I.R.S. by category are:
1979 1980 1981 Total
Tax deficiency $18,161 $24,838 $36,295 $79,294
Penalty 908 1,242 19,757 21,907
Interest 19,977 24,838 27,976 72,791
39,046 50,918 84,028 173,992
3. By the terms of the proposed settlement, the
following amounts are due to be paid by Jack:
44 Many Kersting program participants, like the Thompsons,
made interest payments on or immediately before Dec. 31, 1986,
in order take advantage of the full deductibility of interest
in 1986. The deductibility of payments of personal interest was
subject to phase-out for taxable years beginning after Dec. 31,
1986, pursuant to TRA sec. 511(b), 100 Stat. 2246.
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