- 9 -
Kimberlin’s request, to Kimberlin Partners. Kimberlin Partners
exercised those warrants on February 5, 1997, for 1,250,000 Ciena
shares and in 1998 sold the shares. Kimberlin Partners reported
the sale of the Ciena stock on Schedule D of its 1998 Form 1065,
U.S. Return of Partnership Income. On September 24, 2004,
respondent mailed to the tax matters partner of Kimberlin
Partners and to each partner a notice of final partnership
administrative adjustment (FPAA). The FPAA determined that, in
1998, the partnership was entitled to an increased basis for the
1,250,000 shares of Ciena stock purchased with the warrants
issued to Kimberlin Partners in 1996.
On December 27, 2004, Mr. and Mrs. Kimberlin, while residing
in Greenwich, Connecticut, filed their petition with the Court
seeking review of the 2004 notice of deficiency. That same day,
Kevin Kimberlin, tax matters partner for Kimberlin Partners Ltd.
Partnership, filed a petition seeking review of respondent’s
FPAA. At the time of the petition, the partnership maintained
its principal place of business in Greenwich, Connecticut. On
May 13, 2005, Spencer Trask, whose principal place of business
was New York, New York, filed its petition with the Court seeking
review of the 2005 notice of deficiency. On September 23, 2005,
the Court granted the parties’ joint motion to consolidate these
cases.
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: November 10, 2007