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Bradt, Ron Fujiwara, and the law firm of Yempuku and Kugisaki
between June 10, 1992, and August 15, 1999, should not be
included as part of an award of attorney's fees to petitioners
because: (1) Mr. Izen failed to substantiate the basis for the
payments; and (2) the fees were in fact attributable to legal
services provided to Mr. Kersting in personal matters, including,
but not limited to, Mr. Kersting's challenges to the
Commissioner's assessments of promoter penalties (Kersting v.
United States, F.3d (9th Cir. Mar. 13, 2000)), Mr.
Kersting's personal bankruptcy (In re Henry F.K. Kersting, Bankr.
No. 92-01334 and United States v. Henry F.K. Kersting, No. 93-
0045 (Bankr. D. Haw.)), and Mr. Kersting's personal tax
deficiency case (Kersting v. Commissioner, T.C. Memo. 1999-197).
Respondent further argued that a portion of the fees paid to Mr.
Izen from the Belton fund likewise represented fees properly
allocable to services that Mr. Izen provided to Mr. Kersting in
respect of these same personal matters. Respondent also
emphasized that Mr. Izen's current position that he began
receiving payments from the Belton fund as early as 1992
conflicts with his earlier testimony at the evidentiary hearing
that his fees had been paid by Mr. Kersting until "about November
of '94 or December of '95".
With regard to the materials submitted by Mr. Jones,
respondent notes that Mr. Jones failed to submit time sheets or
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