Joseph and Theresa Momot - Page 3

                                        - 3 -                                         
          petition application, for a review of Failure to Abate Interest”,           
          which the Court filed on February 10, 2005, as “Amendment to                
          Petition”; (3) a letter dated March 19, 2005, entitled “Amended             
          Petition for Review of Failure to Abate Interest Under Code                 
          Section 6404"; and (4) a one paragraph “Notice of Objection” to             
          respondent’s motion.                                                        
               Relevant facts that do not appear to be in dispute are                 
          reflected in the pleadings, respondent’s motion, the affidavit of           
          respondent’s counsel, and the exhibits attached thereto.  For               
          additional background information (since it relates to this                 
          case), reference is made to our Memorandum Opinion in Alhouse v.            
          Commissioner, T.C. Memo. 1991-652, affd. sub nom. Bergford v.               
          Commissioner, 12 F.3d 166 (9th Cir. 1993).  In the absence of a             
          comprehensive statement of facts to support respondent’s motion,            
          the facts contained in the following summary are gleaned from the           
          above sources, and also from settlement documents filed at                  
          Crystal Star Eagle v. Commissioner, docket No. 16434-96 (Dec. 7,            
          2001), which also relates to this case.                                     
               Petitioners were investors in an entity called Crystal Star            
          Eagle in 1985 and 1986.  The entity’s investors were advised by             
          the promoters that they would have the legal status of tenants in           
          common, which permitted the direct deduction of entity items such           
          as certain losses, as well as depreciation, interest, and                   
          management expenses, attributable to the entity’s activities.               






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011