Richard K. and Marilyn J. Phillips - Page 12




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          2.  Petitioners' Position                                                   
               Petitioners contend that Mr. Hoyt’s extensions of the period           
          of limitations are invalid because at the time he executed the              
          appropriate Forms 872 he no longer was the TMP of the Hoyt                  
          partnerships because he had been the subject of a criminal tax              
          investigation.  Therefore, they contend that since the extension            
          agreements were invalidly executed, the periods of limitations              
          for the years in issue expired before the FPAA's were issued.               
               Petitioners base their contentions on three alternative                
          arguments:  (1) That the second and third sentences of section              
          301.6231(c)-5T, Temporary Proced. & Admin. Regs., supra, are                
          invalid and that the initiation of a criminal tax investigation             
          of Mr. Hoyt converted his partnership items in the Hoyt                     
          partnerships into nonpartnership items as a matter of law; (2)              
          that the criminal tax investigation of Mr. Hoyt created a                   
          conflict of interest between Mr. Hoyt's duties as a fiduciary of            
          the Hoyt partnerships and his self-interest as the subject of a             
          criminal tax investigation and that such a conflict necessitated            
          his removal as TMP on the basis of the rationale of Transpac                
          Drilling Venture 1982-12 v. Commissioner, 147 F.3d 221 (2d Cir.             
          1998), revg. and remanding Transpac Drilling Venture 1982-16 v.             
          Commissioner, T.C. Memo. 1994-26; or (3) that the Commissioner              
          abused his discretion by not issuing a written notice informing             








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