Leatherstocking 1983 Partnership, Sam I. Brown, A Partner Other Than The Tax Matters Partner - Page 19

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          authorized to sign on the taxpayer's behalf, and the taxable year           
          to which the agreement relates), affd. 758 F.2d 1340 (9th Cir.              
          1985).  Respondent has met his burden of production as to this              
          issue, and the burden of production now shifts back to petitioner           
          to show that the consents are invalid.                                      
               Petitioner argues that the consents are invalid as to                  
          Leatherstocking’s limited partners for two reasons.  First,                 
          petitioner argues that the consents which Steele signed after               
          June 1990 were signed by him when he had a disabling conflict of            
          interest vis-a-vis the limited partners in that their personal              
          interests “radically diverged” so as to make Steele incapable of            
          extending the periods of limitation beyond December 31, 1990.               
          Petitioner asserts that such a conflict arose because Steele                
          signed the consents to avoid his criminal referral for not filing           
          his Federal income tax returns and to avoid alerting the limited            
          partners to the fact that he was stealing from them.  Petitioner            
          also asserts that such a conflict arose when Steele was under               
          criminal tax investigation and that his ability to consent on               
          behalf of Leatherstocking was compromised when he was in prison.            
          Petitioner asserts that respondent obviously knew (or should have           
          known) as of June 1990 that the interests of Steele as to the               
          Leatherstocking audit were different from the interests of the              
          limited partners because Kertzner had learned by that time that             
          Steele was stealing from the limited partners.  Second,                     






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