- 6 -
on February 15, 2002 (discussed infra), respondent “should
without inordinate delay, confess error and concede the instant
cases in their entirety.”
On April 19, 2002, Mr. Skinner informed Ms. Xenos that, in
light of the March 15, 2002, issuance of Chief Counsel Notice
2002-21 (discussed infra), respondent would concede the
deductibility of the loan origination/acquisition costs at issue
in each of the cases (the loan origination/acquisition costs).8
Sometime previously, Mr. Skinner had been instructed by his
superior, Division Counsel, Large and Mid-Size Business Division
(LMSB), to contact Victoria Balacek, Senior Legal Counsel (LMSB),
to confirm the office’s position with respect to the loan
origination/acquisition costs. On April 19, 2002, Mr. Skinner
learned from Ms. Balacek that a concession of the issue was
appropriate in light of Chief Counsel Notice 2002-21. He then
contacted Ms. Xenos.
On May 29, 2002, Ms. Xenos again wrote Mr. Skinner, alleging
that he was reneging in part on his promise to concede the costs
at issue in the consolidated cases. Ms. Xenos requested that
“any stipulated decision you propose for our consideration
8 Although petitioners argue that respondent did not
concede the deductibility of the loan origination/acquisition
costs and professional fees until June 10, 2002, they do not
dispute Mr. Skinner’s affidavit stating that he informed Ms.
Xenos of the concession on Apr. 19, 2002.
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