Madison Recycling Associates, et al. - Page 8




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               The facts of Transpac Drilling Venture 1982-12, are                    
          distinguishable from the facts of this case.  Unlike the tax                
          matters partners in Transpac Drilling Venture 1982-12, nothing              
          here suggests that the consents were agreed to because Roberts,             
          acting personally or through his attorney-in-fact, had a powerful           
          incentive to ingratiate himself with the Government.  Nothing               
          suggests that Roberts was a prospective Government witness                  
          against other promoters of plastics recycling partnerships;                 
          nothing suggests that the consents were agreed to in return for             
          some grant of immunity or sentencing agreements that depended               
          upon Roberts’ cooperation with the Government.  Indeed, there is            
          no evidence that Roberts (or his attorney-in-fact) was aware of             
          the criminal tax investigation at the time the consents were                
          signed.  Unless he was aware of the existence of the criminal               
          investigation against him, we fail to see how Roberts, acting               
          personally or through his attorney-in-fact, could have been                 
          influenced by personal concerns in a such a way that he could not           
          properly discharge his fiduciary duties to the limited partners             
          of Madison.  See Agri-Cal Venture Associates v. Commissioner,               
          T.C. Memo. 2000-271.                                                        
              We also disagree with petitioners’ suggestion that the                 
          section 6700 proceedings resulted in a conflict of interest;                
          those proceedings had been completed, and the section 6700                  
          sanctions were imposed prior to the time that the consents were             






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