Crop Associates-1986, Frederick H. Behrens, Tax Matters Partner - Page 5




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          which had economic substance and constituted a trade or business            
          for all purposes of the Internal Revenue laws, and (3) the                  
          partnership engaged in the trade or business of farming primarily           
          for the purpose of earning profits.                                         
          Additional History of the Case                                              
               On July 30, 1990, respondent moved to extend the time within           
          which to move or answer the petition from July 30, 1990, to                 
          August 27, 1990.  We granted that motion on August 2, 1990.                 
               On August 13, 1990, respondent moved to stay the proceedings           
          prior to answer for a period of 1 year (the motion to stay).  In            
          support of the motion to stay, respondent claimed that petitioner           
          and certain others were under criminal investigation for their              
          activities in connection with the partnership and other                     
          partnerships sponsored by Amcor Capital, Inc., formerly American            
          Agri-Corp. (without distinction, AMCOR).  Although petitioner was           
          not, then, a participating partner, see Rule 247(b), and                    
          respondent claimed that none of the participating partners were             
          under criminal investigation for their activities in connection             
          with any AMCOR-related partnership, respondent believed that a              
          stay was required to avoid conflicts and difficulties arising               
          from the ongoing criminal investigation of petitioner and certain           
          others.  The petitioning partners objected to the motion to stay,           
          arguing, among other things, that not only were none of the                 
          participating partners under any related criminal investigation             






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