But Don’t Push Your Luck

Judge Buch, known as one who is loath to cut slack for attorneys who don’t cover their clients’ cases (see my blogpost “Throwing the Buch?” 3/5/13), nevertheless will cut a self-represented some slack, if good faith be shown.

That’s the story in Randy Lee Lother, Docket No. 26538-11, filed 5/8/13.

Randy Lee’s sole issue was to whom the Secretary of the Treasury had delegated authority to lay upon Randy Lee the two SNODs he was petitioning.

Judge Buch: “The information regarding to whom authority is delegated was important because Mr. Lother’s only argument was that the people who signed the notices of deficiency lacked the authority to do so. Other than the stipulations, Mr. Lother offered no evidence.” Order, at p. 3.

If Randy Lee had read the Rule 91(f) stipulations IRS had prepared and sent him pre-trial, he would have seen that authority was properly delegated. So IRS wants a Section 6673 frivolity penalty, because Randy Lee didn’t read the aforesaid stipulations until he was in front of Judge Buch and on the record. IRS claims delay of the game.

No, says Judge Buch. “After reviewing this material for what appeared to be the first time, Mr. Lother appeared to withdraw his delegation of authority argument, which  was appropriate, given that the declarations clearly resolve the issue. He presented no other arguments and no evidence concerning errors in the notice of deficiency.” Order, at p. 4.

Judge Buch: “Whether IRS personnel ‘have acted outside their delegated authority can be consequential.’ The Court does not fault Mr. Lother for merely having raised the delegation of authority  argument. Where Mr. Lother can be faulted, however, is for not having read the materials that were sent to him that clearly answer the question. The Court could impose on Mr. Lother a penalty for delay. Once the information was provided to him in January, he should have abandoned this argument. But to his credit, once the Court called the information to his attention, he did not perpetuate the argument. It also should be noted that the Court has not identified a prior proceeding in which Mr. Lother presented frivolous arguments or was warned about possible sanctions under section 6673.” Order, at p. 5.

Neither could IRS’ counsel point to any like infraction by Randy Lee.

So Judge Buch shows Randy Lee the  yellow card, as the footballers say. “The Court warned Mr. Lother on the record, and restates it here in this bench opinion, that perpetuating frivolous arguments or causing needless delay of a proceeding before this Court may subject him to sanctions in the future.” Order, at p. 7.

Read and heed, you self-representeds.