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inherent power and imposed sanctions against respondent. In
particular, the Court held that Kersting program participants who
had not had decisions entered in their cases, or whose decisions
were not final, were relieved of liability for (1) the interest
component of the addition to tax for negligence under sections
6653(a)(2) and 6653(a)(1)(B), and (2) interest computed at the
increased rate prescribed in section 6621(c).
On June 24, 1999, the Court vacated its decisions in the
test cases to consider the applications of attorneys Izen and
Jones for fees and sanctions against respondent. After the test
case and non-test-case petitioners who had participated in the
evidentiary hearing, including those represented by Mr. Sticht,
had filed numerous additional papers, the Court, on March 31,
2000, filed a Supplemental Memorandum Opinion as Dixon IV. The
Court awarded in part the fees sought and denied the motions for
additional sanctions. On the same date, the Court again entered
decisions in the test cases. The test case petitioners filed
timely notices of appeal from these decisions, again seeking
review by the U.S. Court of Appeals for the Ninth Circuit.
The Second Appeal
On January 17, 2003, the Court of Appeals issued a second
opinion in the test cases, Dixon v. Commissioner, 316 F.3d 1041
(9th Cir. 2003) (Dixon V), as amended on March 18, 2003, vacating
and remanding this Court’s decisions in the test cases other than
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