- 99 -
extension concerning the 1984 taxable year of RCR #4, was
operating under a disabling conflict of interest due to this
ongoing criminal investigation.
Although petitioners have alleged numerous breaches and
violations by Jay Hoyt of other general partnership duties, his
violations of those duties, if proven, have only a remote and
highly attenuated connection, at best, to his execution as TMP of
the extensions in dispute. The Court is not convinced that such
violations by Jay Hoyt of his other partnership duties in
managing and operating a partnership, constitute disabling
conflicts of interest in executing the extensions as TMP. See
Phillips v. Commissioner, 272 F.3d at 1175 (distinguishing
Transpac, by noting, among other things, that a TMP’s execution
of an extension often is a routine accommodation granted the IRS
and avoids respondent’s issuance of an FPAA immediately).
Petitioners further suggest that Jay Hoyt granted the
extensions in exchange for the IRS’s abatement of penalties
against him totaling $119,700, covering years prior to 1989. Of
the $119,700 of abated penalties, $90,000 were penalties under
section 6701 assessed against Jay Hoyt sometime in mid-1989. The
IRS abated the $90,000 of section 6701 penalties in early 1991,
following Jay Hoyt’s filing a refund claim in 1990. Petitioners
state that the IRS “inexplicably” abated all $119,700 in
penalties that it previously assessed against Jay Hoyt.
Page: Previous 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 NextLast modified: May 25, 2011