James E. Blasius and Mary Jo Blasius, et al. - Page 6

                                        - 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.                                   





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011