Gregory Drake - Page 19

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          Barbara Drake and petitioner for the years in issue (the global             
          settlement).11  The parties first discussed such a global                   
          settlement in a telephone conference on December 16, 2005.                  
               In a letter to Attorney Cardone dated December 19, 2005, Mr.           
          Burke stated:  “It is my understanding that the Service has                 
          offered to resolve both Mr. Drake’s and Mrs. Drake’s matters in             
          exchange for the Drake family’s foregoing all claims relative to            
          the levy which has been made upon funds held by the Mr. and Mrs.            
          Drake’s son(s).”  In response to an apparent request by                     
          respondent that petitioner drop his motion for litigation costs             
          and fees, Mr. Burke’s letter further stated that the award of               
          litigation costs and fees is “a matter for the consideration by             
          the Court and not a matter for negotiation.”                                
               In a letter to Mr. Burke dated December 20, 2005, Attorney             
          Cardone stated that respondent would agree to take no further               
          collection action against Barbara Drake and petitioner with                 
          respect to the years in issue upon the following terms:                     
               •    Darren Drake and Gregory Drake, Jr., waive all                    
                    rights to bring a claim against the United States                 
                    under 26 U.S.C. sec. 7426(a).                                     
               •    Darren Drake and Gregory Drake, Jr., will provide                 
                    whatever consents are necessary to allow Citigroup                
                    Smith Barney to liquidate the brokerage account                   
                    that was the subject of the IRS levy and to turn                  
                    the proceeds over to the IRS.  Normal costs and                   

               11The parties’ global settlement negotiations should be                
          distinguished from petitioner’s offer-in-compromise, which                  
          pertains to the tax liabilities of petitioner alone.                        





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