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acts of Government misconduct, the Court exercised its inherent
power and imposed sanctions against respondent. In particular,
the Court held that Kersting program participants who either had
not had decisions entered in their cases or whose decisions were
not final were relieved of liability for (1) the interest
component of the addition to tax for negligence under sections
6653(a)(2) and 6653(a)(1)(B), and (2) interest computed at the
increased rate prescribed in section 6621(c).
Motions of Messrs. Izen and Jones
On June 24, 1999, Messrs. Izen and Jones filed motions with
supporting memoranda for attorney's fees and costs and for
sanctions on behalf of test case and nontest case petitioners.
Relying on 5 U.S.C. section 504 (1994), 28 U.S.C. section 2412
(1994), and sections 7430 and 6673(a)(2)(B), Messrs. Izen and
Jones asked the Court for an award of attorney's fees and costs
to their clients. Relying on Fed. R. Civ. P. 11, Tax Court Rule
230, and section 6673(a)(2)(B), Messrs. Izen and Jones also
contended that the Court should impose sanctions against
respondent in an amount not less than $2 million. Messrs. Izen
and Jones requested the Court to order respondent to pay any such
award and sanctions to petitioners immediately, rather than
waiting for assessment and collection of the underlying
deficiencies under section 6213(a).
Because the decisions in the test cases had not become final
by the time that Messrs. Izen and Jones filed their motions, the
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