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Dombrowski also noted that the Thompsons appeared to have
defaulted on a statutory notice issued to the Thompsons for 1983
disallowing claimed Kersting deductions of $67,620, but that the
IRS had failed to assess the resulting deficiency of $980.
Dombrowski also noted the May 8, 1987, entry in the Thompsons’
file for 1983 that stated: “No reason to change determination –
refiling case.” Dombrowski believed this entry indicated that
someone contacted the Fresno Service Center after receiving and
questioning the notice of deficiency for 1983. Because the 3-
year period of limitations with respect to the returns he was
examining had expired several years earlier, Dombrowski did not
attempt to determine why the assessment for 1983 had not been
made. He instead focused on preparing a timely response to the
Court’s June 22, 1992, order in the Thompsons’ cases.
On June 24, 1992, Marlene Gross (Gross), an official in the
National Office of Chief Counsel, called Bakutes and informed him
that, despite the disclosure of Sims’s and McWade’s misconduct,
the Department of Justice (DOJ) would not seek to remand the test
cases that had been appealed. The DOJ’s decision was based on
the Tax Court’s refusal to vacate the decision in the Rina case.
That refusal indicated to the DOJ officials that the Tax Court
probably would not vacate its decisions in the other test cases
if asked to do so. Gross also reported to Bakutes that the DOJ,
and specifically, the Tax Division, Appellate Section Chief Gary
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