In Uncategorized on 09/30/2013 at 15:50

Or, Virginity Regained

 I was waiting for the last blast from Tax Court before the shut-down today (and that’s the only reference I’ll be making in that regard; Mr. Patrick Temple-West of Reuters asked me what I’d be doing if Tax Court shut down, and I replied I’ll be taking a break), when an old friend I happened to meet, as Redd Stewart and Pee Wee King put it in their 1947 hit song “Tennessee Waltz”.

I’d missed Third Circuit’s reVirginization of Richard and Lana Vento, the stars of my blogpost “The Non-Virgin Islanders”, 3/13/11, whose lack of Virgin Islands sociability got Judge Sanchez to blow up the tax benefits from their flight to our beautiful but insolvent Islands in the Sun.

Judge Kroupa brings us up to date in DTDV, LLC, Richard G. Vento, Tax Matters Partner, Docket No. 741-09, filed 9/30/13. And I apologize for missing Third Circuit’s at-least-partial rescue of la famille Vento.

Judge Kroupa: “…Third Circuit Court of Appeals issued its opinion concerning the residency status of Richard Vento and Lana Vento as well as their daughters Gail Vento, Renee Vento and Nicole Mollison. The Third Circuit determined that Richard Vento and Lana Vento were residents of the U.S. Virgin Islands for income tax purposes for the tax year 2001 and that Gail Vento, Renee Vento and Nicole Mollison were not residents of the U.S. Virgin Islands for income tax purposes for the tax year 2001. None of the parties filed a petition for writ of certiorari with the Supreme Court, so the decision of the Third Circuit is final.” Order, at p. 2.

I understand Third Circuit was less impressed by lack of library cards and driver licenses, and the art collection back on the mainland, than by all the money the Ventos spent trying to rehab their VI residence, and decided that was good enough. But check out Judge Hardiman’s exegesis yourself.

Not a whit dismayed, IRS charges on against the Vento children.

Judge Kroupa: “…respondent issued FPAAs in 2008 to three limited liability corporations controlled by Richard Vento, known as Nicole Vento, LLC, Gail Vento, LLC and Renee Vento, LLC (Vento daughter LLCs). The Vento daughter LLCs filed an appeal to the district court for the U.S. Virgin Islands contesting the FPAAs issued by respondent. The Vento daughter LLCs district court cases concern issues similar to those involved in these cases pending before the Tax Court. The district court held a trial, issued an opinion and entered judgments in the Vento daughter LLCs’ cases upholding the adjustments contained in respondent’s FPAAs and imposing a negligence penalty under I.R.C. § 6662. The Vento daughter LLCs filed appeals with the Third Circuit Court of Appeals contesting the district court’s judgments. Those appeals have not yet been resolved and are currently pending with the Third Circuit.” Order, at p. 2.

The Ventos want to go to trial in Tax Court now.

No, says Judge Kroupa: “The Court strives to move cases to resolution as quickly and efficiently as possible. The Court does not believe, however, that it would be in the best interests of the parties or the Court to schedule these consolidated cases for trial at this time especially given that the Third Circuit currently has the related cases under advisement.” Order, at p. 2.

So lets see what Third Circuit does and try these cases next year, maybe.


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