- 125 -
urge, however, that such benefits be deemed “ballast” in weighing
the sanctions to be imposed.
We believe that, in responding as we have to the mandates of
the Court of Appeals, we have accounted for the problems faced by
the other affected taxpayers. We are painfully aware, as the
Court of Appeals for the Ninth Circuit has observed, that
“Enormous amounts of time and judicial resources have been
wasted” and further that the “taxpayers should not be forced to
endure another trial”. Dixon v. Commissioner, 316 F.3d at 1047.
We further recognize the urgent need to “equitably resolve this
situation” to the best of our abilities. Id. Despite our
rejection of any notion of “ballast” as an impermissible
invitation to fix damages against respondent, we are confident
that our implementation of the mandates, in conjunction with
respondent’s concession cutting short the accrual of interest on
deficiencies, see infra Part III, will provide substantial relief
to all affected taxpayers.
F. The Percentage Reduction Summarized
To summarize our holdings above, we shall direct that the
Kersting-related deficiencies65 for each of the affected
taxpayers are to be reduced by a factor of 63.37 percent; that
is, affected taxpayers will have to pay 36.63 percent of the
65We do not include in that term deficiencies relating to
Bauspar. See infra Part II.G.2.
Page: Previous 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 NextLast modified: May 25, 2011