Attorney-at-Law

“HE’S DEAD, JIM”

In Uncategorized on 09/25/2013 at 17:43

The immortal words of Starfleet Surgeon Commander Leonard (“Bones”) McCoy to Starfleet Captain James T. Kirk echo in Promissory Note Acquisition Company, LLC, Jack D. & Lisa J. Traeger, Partners Other Than The Tax Matters Partner, Docket No. 27468-12, filed 9/25/13.

Apparently the tax matterer in Jack and Lisa’s deal is dead, so according to Judge Paris, “is, therefore, no longer eligible to serve as tax matter partner. Section 301.6231(a)(7)-1(1)(1)(i), 301.6231(a)(7)-2(a), Proced. & Admin. Regs.” Order, at p. 1.

No successor has been chosen, so Jack and Lisa want a time out.

Judge Paris examines the role of the tax matterer: “Under the statutory provisions set forth in I.R.C. section 6221 et seq., the presence of a tax matters partner during litigation before this Court is essential to the fair, efficient, and consistent disposition of partnership proceedings. The tax matters partner must keep each partner informed of all proceedings relating to the adjustments of partnership items at the partnership level. Computer Programs Lambda, Ltd. v. Commissioner, 90 T.C. 1124, 1126 (1998). It therefore follows that to continue with this litigation, it is essential that a tax matters partner be appointed.” Order, at p. 1.

Remember poor Beverly Bernice Bang? See my blogpost “Bang – A Warning to Tax Matters Partners (and their advisors)”, 1/5/11. Tax matterers have to tell all their partners what’s happening with the litigation, and stay on top of it.

So Judge Paris gives Jack and Lisa a time out, during which Jack and Lisa must “file a Motion to Appoint Tax Matters Partners, either setting forth the name and address of the successor tax matters partner, or, if one has not been chosen by the partnership, setting forth the names, addresses, and members who can be designated managers and who are eligible to be appointed tax matters partner.” Order, at p. 2.

And check out the cited Regulation for how to do it.

Of course IRS gets a chance to respond or object to the motion.

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