Attorney-at-Law

THE TWO ADVISER RULE

In Uncategorized on 06/23/2016 at 17:31

I can’t remember if I ever cited this wonderful wisdom that I stole from a CA practitioner (whose name I’ve forgotten). So I’ll say it again, maybe. “Every taxpayer needs two advisers, one to tell them what the law is, and the other to tell them what they wish the law was. Then they can choose whose advice to follow.”

After a Sum. Op. today involving  unsubstantiated noncash charitables, some of which were allegedly picked up on the street, drawing a waspish dig from Judge Gerber that it’s income if you didn’t pay for it or get it as a gift, I scrolled through the orders and found a familiar face.

Remember Annamalai Annamalai & Parvathi Siva Annamalai, Docket No. 15887-13, filed 6/23/16? I didn’t think so, so check out my blogpost “I’d Do Anything for Love,” 5/9/14, when  the Annamalais wanted Judge Cohen to get him or her (or maybe both; the order doesn’t state) out of the “Segregation Hole”; unhappily, Tax Court’s jurisdiction doesn’t extend to whatever slammer the Annamalais were honoring with their presence at the time.

Now apparently sprung, the Annamalais are discharged (in bankruptcy?) and IRS wants to enter order and decision embodying same. Judge Cohen had ordered the Annamalais to show cause why such order and decision should not be entered.

Judge, you asked for it.

“Petitioners’ response was filed… along with a Motion to Take Judicial Notice. Although much of petitioners’ response is unintelligible, it is apparent that they wish to regard this case as settled. They indicate no objections to the amounts set forth in the proposed decision. Although they seem to believe that entry of the decision indicates that the liability for Federal income taxes has been paid, that is not the law or the effect of entry of a decision in this case. Issues regarding payment and collection are not involved in this case.” Order, at p. 1.

While it looks like the Annamalais took the advice of the second of the two advisers, they are facing $56K in tax and $42K in penalty.

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