In Uncategorized on 10/31/2014 at 22:57

Judge Wherry has the often-quoted advice for Appeals in Larry F. Anderson, Docket No. 2955-11L, filed 10/31/14. Larry and IRS submitted a fully-stipulated case last year, but Judge Wherry bounced it, because Appeals hadn’t considered Larry’s woeful health condition, or whether the trust into which he had placed his principal residence was a dissipation of assets, or whether Appeals got the valuation of his interest in the principal residence right.

So back to Appeals it went. The supplemental hearing yielded communication and production difficulties, but no answer to Judge Wherry’s questions.

Larry also reduced the amount of his proffered OIC because of the lapse of time and his deteriorating condition.

So will there be a supplement to the supplement? You betcha.

Notwithstanding the oft-reiterated “we are a court of limited jurisdiction” mantra, Judge Wherry finds “In some instances, where uncertainty remains or the record indicates that the taxpayer has still not received a proper hearing, we may remand a second time.” Order, at p. 2 (Citations omitted).

Ordinarily remand follows trial, but here a trial would be unproductive unless Appeals considers the questions Judge Wherry asked to begin with. So he tells Appeals, IRS and Larry what Appeals has to consider–again.

Besides, maybe little old limited-jurisdiction Tax Court isn’t as powerless as it sometimes makes out. “See generally Williams v. Commissioner, 119 T.C. 276, 282 (2002) (describing inherent powers of the Tax Court to regulate proceedings before it, including by sanctioning parties for non-compliance with the Court’s rules); Westreco, Inc. v. Commissioner, T.C. Memo. 1990-501, 60 T.C.M. (CCH) 824, 836-837 (1990), aff’d 923 F.2d 854 (6th Cir., 1991) (describing Tax Court’s inherent powers ‘in the discharge of its judicial functions’). “ Order, at p. 3.

Go to it, guys.


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