Back from a one-day layoff, and a delayed start today, March 4, Judge Goeke orders the parties to stand by for trial in Gaughf Properties, L.P., Balazs Ventures, LLC, A Partner Other Than the Tax Matters Partner, Docket No. 12898-07, filed 3/4/14.

Remember the Gaughfs, Andy Jackson Gaughf and his spouse Nan? No? See my blogpost “A Busy Day”, 9/10/12. The whole issue was whether IRS was obliged to use information acquired otherwise than filed on a Form 1065 and allied documents to ascertain that the Gaughfs were indirect partners in a Jenkens & Gilchrist phony basis-builder.

Tax Court said “no”, so the three-year statute of limitations hadn’t run against IRS when they sent Andy Jackson and Nan the FPAAs they’re fighting about.

Well, the Gaughfs appealed. And back on 12/17/13, DC Circuit affirmed Tax Court.

Here’s Circuit Court Judge Karen LeCraft Henderson: “While the  regulation provides that the IRS ‘may use other information in its possession,’ it also makes clear the IRS ‘is not obligated to search its records for information not expressly furnished under [the regulation].’ Treas. Reg. § 301.6223(c)-1T(f) (emphases added); cf. Walthall v. United States, 131 F.3d 1289, 1296 (9th Cir. 1997) (‘mere fact that the IRS possesses in its database the name and address of indirect partners does not mean that it has been “furnished with” this information’ so as to trigger IRS obligation to notify indirect partners of administrative proceedings under I.R.C. § 6223). Nor does the regulation give effect to the ‘[i]ncorporation by reference of information contained in another document previously furnished to the Internal Revenue Service.’ Treas. Reg. § 301.6223(c)-1T(c).” Gaughf Properties, et al v. CIR, 13-1026, 12/27/13, at p. 21.

So it’s back to Tax Court, and on to the trial.