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executed by Jacobson. See Phillips v. Commissioner, 114 T.C.
115, 132 (2000).
The “‘mere existence of an investigation’” targeting the tax
matters partner does not, in and of itself, “‘subvert a tax
matters partner’s judgment and bend him to the government’s will
in dereliction of his fiduciary duties to his partners.’”
Phillips v. Commissioner, supra at 132 (quoting Olcsvary v.
United States, 240 Bankr. 264, 266-267 (E.D. Tenn. 1999)); see
also Agri-Cal Venture Associates v. Commissioner, supra.
Consequently, without more, we reject petitioners’ contention
that the completed section 6700 proceedings or the criminal tax
investigation targeting Roberts caused him to lose his authority
to act on behalf of Madison due to a conflict of interest. It
follows that the consents are not rendered invalid on that
ground. Because the FPAA was issued within the period
contemplated by the consents, the FPAA was timely, and we so
hold.
To reflect the foregoing and the agreement of the parties
with respect to the adjustments made in the FPAA,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011