Crop Associates-1986, Frederick H. Behrens, Tax Matters Partner - Page 47




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               Rules of Criminal Procedure included, Department of                    
               Justice attorney's review notes and letters, agreements                
               executed by the AMCOR partnerships, letters, promissory                
               notes, leases, a two-page letter to William K. Shipley,                
               Deputy Regional Counsel, Internal Revenue Service, from                
               Stanley F. Krysa, Director of the Tax Division's                       
               Criminal Enforcement Section, dated March 1, 1993 (EX                  
               17-P) and fourteen pages of an internal Department of                  
               Justice Tax Division Memorandum ("DOJ Memo") prepared                  
               by Ronald A. Cimino, Stanley F. Krysa and James A.                     
               Bruton. (EX 90-P)                                                      
               Rule 6(e) of the Federal Rules of Criminal Procedure (Fed.             
          R. Crim. P. 6(e)) sets forth the general requirement of secrecy             
          for grand jury proceedings.  Where respondent has obtained and              
          used grand jury materials in violation of Fed. R. Crim. P. 6(e),            
          the Court in one instance has sanctioned respondent.  Cohen v.              
          Commissioner,42 T.C.M. (CCH) 312, 1981 T.C.M. (P-H) par. 81,901             
          (exclusion of certain evidence and shifting burden of going                 
          forward with evidence).  We did so where such sanctions were                
          appropriate as a deterrent to future unlawful conduct.  Compare             
          Cohen v. Commissioner, id., with Kluger v. Commissioner, 83 T.C.            
          309 (1984) (suppression of materials inappropriate when obtained            
          in good faith regardless of whether Fed. R. Crim. P. 6(e) order             
          was proper).                                                                
               In our findings of fact, we have described the motion for              
          sanctions, made by the petitioning partners on July 22, 1994.               
          The petitioning partners moved for sanctions based, in part, on a           
          claim of breaches of grand jury secrecy.  We denied the motion              
          for sanctions.  In doing so, we stated that, except with respect            






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