- 13 - 6653(a)(1)(B), and incremental interest attributable to the increased rate prescribed in section 6621(c). In Dixon IV, the Court awarded additional sanctions against respondent by awarding petitioners attorney’s fees and costs under section 6673(a)(2) but declined to impose any further sanctions. Test case and nontest case petitioners appealed. Izen, in his brief to the Court of Appeals, argued not only that the misconduct of respondent’s attorneys was a fraud on the court, but also that the Tax Court had abused its discretion by denying petitioners’ discovery requests related to allegations of respondent’s continued misconduct after the trial of the test cases. Although the Court of Appeals did not address Izen’s discovery arguments in its opinion, it commented that respondent’s disclosure of respondent’s attorneys’ misconduct “was anything but complete”. Dixon v. Commissioner, 316 F.3d at 1045 n.8. In Dixon V, the Court of Appeals concluded that “the misconduct, including its persistence and concealment, did indeed amount to a fraud on the court.” Id. at 1043. As a sanction against respondent for the misconduct, the Court of Appeals mandated that “terms equivalent to those provided in the settlement agreement with [the Thompsons] and the IRS” be extended to “Appellants [test case petitioners] and all other taxpayers properly before this Court”. Id. at 1047. Notably,Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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