114 T.C. No. 7
UNITED STATES TAX COURT
RICHARD K. AND MARILYN J. PHILLIPS, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 9354-96. Filed February 29, 2000.
Ps were limited partners in several partnerships
with the same designated tax matters partner (TMP). At
the request of the Internal Revenue Service (IRS), the
TMP executed Forms 872, Consent to Extend the Time to
Assess Tax, extending the periods of limitations for
the years in issue.
Before executing the extensions, the TMP had been
the subject of criminal tax investigations by the IRS.
The tax investigations ended before the TMP executed
most of the extensions.
Ps alternatively contend: (1) That the second and
third sentences of sec. 301.6231(c)-5T, Temporary
Proced. & Admin. Regs., 52 Fed. Reg. 6793 (Mar. 5,
1987), are invalid and that the initiation of a
criminal tax investigation of the TMP converted his
partnership items into nonpartnership items as a matter
of law; (2) that the criminal tax investigation of the
TMP created a conflict of interest between the TMP's
duties as a fiduciary of the partnerships and his self-
interest as the subject of a criminal tax investigation
and that such a conflict necessitated his removal as
TMP based on the rationale of Transpac Drilling Venture
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