All of the partnerships' assets have been sold and
the funds have been placed under the control of the US Trustee and the >Bankruptcy
Court. The partnerships are now out of business.
However, there are still many partnership legal problems that need to be tied up; such as
IRS issues and the claims of bankruptcy creditors (including partners' claims). The IRS
issues prior to the bankruptcy of February 24, 1997 are the responsibility of the partners
because the partners are the affected parties.
In February 1998, the US Trustee allowed the partners to form a trust, the Partnerships'
Defense Fund Trust (PDFT), to pay the partnerships' legal, accounting, and administrative
support functions. This effort is totally funded by partners and has no other source
of revenue.
PDFT contributions are not credited as "Hoyt" note payments, interest payments,
or subscription agreement payments. PDFT contributions are used to pay partnership
expenses. This is not a "Hoyt deal" and not "payment book payments."
Contribution amounts are based on what each
partner determines what the final resolution of the "Hoyt fiasco" is worth to
them.
Some of the partnership issues funded by the PDFT are resolution of the more than 800
pending Tax Court petitions, filing petitions in response to IRS Final Partnership
Administrative Adjustments (FPAAs), and settlement negotiations with the IRS and
bankruptcy creditors. The Monty Cobb letter to the TAO was funded by the PDFT.
The PDFT is not about protecting the partnerships; it is about protecting the partners.
If there is no legal defense at the partnership level, there is no protection
against the bankruptcy creditors or the
IRS for the partnerships and, as a result, the partners.
The only practical approach to resolve these issues is at the partnership level. The
extraordinary cost and effort of individual partners trying to resolve each issue on their
own is not realistic.
There is a lot at stake here! All partners need to ensure the best legal
representation possible is available to negotiate a settlement with the US Trustee, IRS,
and other partnership creditors in this bankruptcy case. We hope you will join your
partners in the effort to settle this once and for all and get on with our lives.
You can make out your PDFT Contribution checks to the "Partnerships' Defense
Fund Trust" and send them to:
PDFT
P.O. Box 299
Orovada, NV 89425
We recommend you talk to your tax attorney or accountant concerning your contributions
and participation in the PDFT, as well as your individual tax situation and bankruptcy
claims. Your personal attorney can benefit from the work of the Partnerships'
attorney, which will be shared freely with contributing partners' attorneys. The
reasons you should have your own attorney in addition to the Partnerships' attorney are
(1) your personal situation may, in some cases, differ from most of the partners, and
(2) there are some partner level tax issues that cannot be resolved at the partnership
level.
Examples of PDFT items
01. Nearly 800 pending Tax Court Cases
02. Partnership Bankruptcy Court
03. Late Filing Penalty Case
04. Finding relief of 81-86 assessments
05. Tax Court Fraud (Bales amp Cattle Case) evidence and pathforward.
06. Partnership Level Attorney Update
07. Partnership Defense Trust Fund Updates (PDFT)
08. Working with Networked Attorneys to ensure consideration of the investor's best
interests during partnership closure activities.
09. Responding to all legal issues (Tax Court, Bankruptcy Court, Civil Court and
IRS)
10. Pursue Settlement Options.
11. Case study of other court opinions (Transpac)
See Monty's cover letter--of a 462 page document sent to the
National TAO stating our claims with the factual evidence (Court, FBI and IRS document).
You may use this letter as an attachment to your Congressional letter. Call a CSRA Partner Group Mail Clerk, for nearest point of contact or
other methods available information.
Why should you support the PDFT and be part of a Group Attorney Program? IRS filed a
motion to remove Jay as TMP in Tax Court recently (1998). Thus, the Tax Court will appoint
a TMP to finalize partnership items. This new TMP will make some hard choices. To support
the PDFT, inform the appointed TMP you have an interest in this mess and it is his
fiduciary duty as the TMP to act in the best interests of the investor.
The CSRA Partner Group members include partners dating back to 1979. Some members are part
of ongoing litigation. We practice "Help Yourself By Helping Others" is
best--without violating attorney client privilege for information releases. The CSRA
Partner Group maintains close ties with the PDFT.
We have people in AL, AZ, CA, FL, GA, ID, IL, LA, KS, MS, NC,NM, NY, OH, OR, PA,
SC, TN, and WA as points of contact to receive a 600+ page
package that explains what we must write to our Congressional Leader/TAOs. Persons
receiving that package have been contributing to the PDFT and will be points of
contact for that state. The CSRA Partner Group Procedure gives
you phone numbers (CSRA Mail Clerk) for more information.
We have a webmaster (Mark Lamendola) who places information on the Web to help
encourage your letter writing efforts. Mark makes his living as a professional editor.
Mark has been very strong in voicing his opinion and we understand why. No one has
supplied him the information (Matters of Law) causing this mess. Nothing like being in the
fog, standing on a bridge with Mac trucks traveling both directions (IRS 4U for a license
plate). We will keep Mark informed so he may utilize the Web to keep you informed.
The 14 subjects Richard Pooley mentions in his letter dated
1/22/98 to Senator Roth will blow you away. Who is this Richard Pooley and what right does
he have to say these things? Mr. Pooley included his resume in his letter.
Have I encouraged you to join our letter writing campaign yet? If not, read on. |