Investment Research Associates - Page 120




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               In all of the amended answers in which respondent asserted             
          increased deficiencies in tax, as well as increased additions to            
          tax and penalties, respondent did not calculate or assert the               
          amounts of the increased tax deficiencies or the amounts of the             
          additions to tax or penalties.  Respondent asserted only the                
          amounts of increased income or the amounts of disallowed expenses           
          that would result in increased deficiencies in tax and additions            
          to tax.  As a result of these amended answers, and as a result of           
          numerous concessions and stipulations of settlement that were               
          made by the parties before, during, and after the trial, as well            
          as concessions of certain issues by respondent on brief, Rule 155           
          computations will be necessary in some of the cases.6                       
               These cases are part of a larger group of cases that have              
          also been identified by respondent as a litigation project.  The            
          sobriquet for this project is "Levenfeld/Kanter".  These cases              
          were selected for trial because, as the Court understands, they             
          involve common issues that the other cases in this project do not           
          have.                                                                       
               References to Kanter, Ballard, and Lisle are to Burton W.              
          Kanter, Claude M. Ballard, and Robert W. Lisle, respectively.               
          Reference to the Kanters, Ballards, and Lisles are to Burton W.             



          6                                                                           
               In some of the cases, if petitioners are sustained on the              
          fraud issue, respondent will be barred by the statute of                    
          limitations from assessment as to those petitioners.                        





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