Hoyt W. and Barbara D. Young, et al. - Page 7

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          The Court of Appeals vacated this Court’s decisions in the test             
          cases and remanded them for “an evidentiary hearing to determine            
          the full extent of the admitted wrong done by the government                
          trial lawyers.”  Id.  In response to the direction of the Court             
          of Appeals to consider on the merits all motions of intervention            
          filed by interested parties, this Court ordered that the cases of           
          10 nontest case petitioners (hereafter, the participating nontest           
          case petitioners), including the Adairs and the four Jones                  
          petitioners,4 be consolidated with the remaining test cases for             
          purposes of the evidentiary hearing.                                        
          On the basis of the record developed at the evidentiary                     
          hearing, the Court held that the misconduct of the Government               
          attorneys in the trial of the test cases did not cause a                    
          structural defect in the trial but rather resulted in harmless              
          error.  See Dixon v. Commissioner, T.C. Memo. 1999-101 (Dixon               
          III).  However, the Court imposed sanctions against respondent,             
          holding that Kersting program participants who had not had final            
          decisions entered in their cases would be relieved of liability             
          for (1) the interest component of the addition to tax for                   
          negligence under former section 6653(a), and (2) the incremental            
          interest attributable to the increased rate prescribed in former            
          section 6621(c).                                                            

          4 The remaining five participating nontest case petitioners                 
          have been represented by Robert Patrick Sticht (Sticht).                    

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