- 16 - partnership as late as September 9, 1995. Deverna v. Commissioner, T.C. Memo. 2004-80. In Deverna, we recognized that because there were many Swanton investors, 2 years from the time of settlement was an acceptable delay. Nevertheless, to prepare closing agreements, Ms. Sullivan was ultimately just taking numbers from records that were available to her. The South Bay closing agreement was sent to Redwood in February or March 1996. Respondent has not adequately explained the additional 6-month delay in sending out South Bay’s closing agreement. Ms. Sullivan’s only explanation of the delay was that the Swanton investors were numerous. Without a more specific explanation of the events that caused the additional 6-month delay past the time the closing agreements were sent out in Deverna, abatement of interest is appropriate for this additional 6-month period. Therefore, it was an abuse of discretion to deny abatement of interest for the period September 9, 1995, through March 31, 1996. D. April 1, 1996, Through March 31, 1998 Ms. Sullivan sent the closing agreements to Redwood by March 31, 1996. Sometime at the end of 1997, Redwood’s TMP informed Ms. Sullivan that the computations she had done for Redwood were based on incorrect investment figures. Ms. Sullivan testified that she based her calculations on records that the Swanton Corp. kept for all the Swanton programs. Redwood’s investment schedule differed from those of the other Swanton programs. The Swanton records doPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
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