T.C. Memo. 2005-205 UNITED STATES TAX COURT JESSE M. AND LURA L. LEWIS,1 Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket Nos. 15673-87, 18551-88, Filed August 29, 2005. 29429-88. R determined deficiencies and additions to tax against Ps and hundreds of other taxpayers who then signed “piggyback agreements” with R, agreeing to be bound by the outcome of selected test cases involving tax shelter programs promoted by K. Before trial of the test cases, R’s trial attorney, with his immediate supervisor, entered into a secret settlement (not disclosed to R’s management, the attorney for other test case petitioners, or the Tax Court) with D, attorney for test case petitioners T, arranging refunds to the Ts sufficient to pay D’s attorney’s fees as consideration for the Ts’ staying in the test case array and T’s testifying at trial. After the Court upheld R’s determinations and entered decisions in favor of R in the test cases, R’s management discovered 1These cases have been consolidated for the sole purpose of deciding the motions currently before the Court.Page: 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