A former law partner, now deceased, gave me this valuable advice more than 30 years ago. I should follow it, but I can’t in this instance; my frustrations got the better of me, again.

What sparked this blogpost is Robert L. Bernard and Diolinda B. Abilheira, T. C. Memo. 2012-221, filed 8/1/12. On its face, it’s a routine unreported income (IRA distributions) case, not really worth mentioning, except Robert L. is a former Assistant U. S. Attorney, retired on account of disability (and who, by the way, is still listed as actively practicing law by the Texas State Bar on its website).

So Robert L. is automatically eligible for admission to practice before the Tax Court, without taking the gut-busting examination members of other professions, trades, businesses or callings are obliged to take to secure that privilege, notwithstanding the clear Congressional mandate in Section 7452 (see my blogpost “A Book and a Modest Proposal”, 5/22/12).

I will not catalogue Robert L.’s sins, except briefly: treating IRA distributions as sales of property taxable at capital gains rates, underreporting rents, interest, social security receipts and dividends. Then Robert L. engages in a protracted wrangle over whether his case is to be treated as a small claim (Section 7463).

Judge Cohen: “Petitioners continue to argue that this case qualifies for section 7463 status because the deficiency (ignoring the penalty) is less than $50,000 and their computations show that they do not owe taxes on certain of the distributions, thus bringing the total in dispute to less than $50,000. Petitioner, although trained as a lawyer, stated that they would give up their right to appeal in order to avoid having rules of evidence strictly applied. They apparently assume–erroneously–that relaxed rules of procedure and evidence under Rule 174(b) relieve them of the necessity of timely and appropriate evidence and arguments based on applicable law. Rule 174(b), however, refers to consistency with ‘orderly procedure’ and requires evidence that has ‘probative value’. In any event, this case is governed by procedures and rules applicable to cases not eligible for an election under section 7463.” T. C. Memo. 2012-221, at pp. 5-6.

You can read the rest for yourself. It isn’t pretty.

Isn’t it time to revisit Rule 200?