Charles G. and Elizabeth A. Fargo - Page 8

                                        - 8 -                                         
          agreement with the TMPs of the partnerships in which petitioners            
          had an interest before starting collection activity at their                
          level.                                                                      
               The Appeals officer determined that the delay in                       
          petitioners’ learning of their snowballing liability is a matter            
          they should address with the TMPs of their partnerships.  We                
          agree.  TEFRA contemplates that it is generally a TMP’s                     
          responsibility to keep his partners informed.3  Sec. 6233(g);               
          sec. 301.6223(g)-1T, Temporary Proced. & Admin. Regs., 52 Fed               
          Reg. 6785 (Mar. 5, 1987).  We decline to decide that the failure            
          of the IRS to contact petitioners sooner is reason to compel                
          respondent to accept a settlement of approximately 7 percent of             
          petitioners’ interest liability.                                            
               We do agree with petitioners that there is something                   
          disconcerting about their not receiving notice of the                       
          ramifications for them of the Swanton coal litigation until 1999.           
          Indeed, respondent’s determination notes that petitioners may               
          have received no correspondence at all from their TMPs since                

               3  One part of respondent’s determination regarding the long           
          delay between Kelley and assessment does seem mistaken.  The                
          Appeals officer found that “no link had been established” between           
          the Swanton Coal Programs and petitioners’ tax liabilities.  This           
          statement is fundamentally in error if it was intended to mean              
          that Kelley did not at least indirectly affect petitioners’ tax             
          liabilities.  Nevertheless, it appears to be dictum.  Regardless            
          of the interrelation of the partnerships involved in the Swanton            
          Programs, respondent is correct that legal responsibility for               
          more promptly notifying petitioners and trying to resolve their             
          partnerships’ tax issues lay ultimately with their TMPs.                    





Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011