In Uncategorized on 12/11/2012 at 17:59

The Kersting tax shelter cases, now approaching their thirtieth birthday, are still winding their way through Tax Court. Henry Kersting, supposedly a U-boat commander for Nazi Germany in World War II, created a package of tax shelters and thereby left a legacy which torpedoed some 1300 airline pilots and their families, and set them adrift in a modern Jarndyce v. Jarndyce, with appellate findings of official misconduct, tampering and general governmental skullduggery.

I’ll skip the details, although a simple Google search will turn these up instantly.

The reason why I turn to this antique is that it continues to befuddle Tax Court to this day. Case in point: Richard J. Buckley and Estate of Jean Buckley, Deceased, Diane Tsubota, Personal Representative, Docket No. 17756-82, filed 12/10/12.

It’s a simple order. IRS has a computation of who owes whom what, and either Richard and Diane sign aboard, or they can submit their own; but if Richard and Diane don’t sign aboard or object, then Chief Judge Thornton will enter IRS’ computation as the decision.

Simple, no?

But that’s not all. Here’s the relevant paragraph, in full: “(2) file the computation and a motion for entry of decision with a proposed decision document; respondent must serve a copy of the motion on petitioners, and petitioners must file their objection, accompanied by an alternative computation, on or before 45 days after the date of service; if petitioners fail to file an objection, then the Court may grant respondent’s motion and enter the decision in accordance with respondent’s proposed computation. It is further”. Order, P. 1.

It is further what?

I told you the Kersting cases continue to befuddle the Tax Court.

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