In Uncategorized on 11/24/2016 at 00:26

I was busy blogging a big 1031 case when Eric Stephen Gerencser hit the big time back in August. It was another of those expat Section 911s, but Eric was really creative, taking not only the foreign earned income exclusion (to which he was entitled), but a foreign income tax credit as well, even though he never paid any foreign income tax.

Eric claimed he might have to pay such tax retroactively, and crafted his own solution “to cover the waterfront.” Well, Judge Buch didn’t buy it in 2016 T. C. Memo. 151, filed 8/10/16.

Now Eric wants to try it out on the Circuit, but there’s a hitch.

As there’s final Tax Court decision (that’s a judgment to us State courtiers), Eric needs a bond, lest IRS lien and levy while Eric trudges through the appeals process.

But bonds, unlike butterflies, aren’t free. And Eric wants a discount.

Eric moves the Court to fix the amount of the bond less than the full-boat required by Section 7485, which is not more than double the amount of the deficiency, plus the add-ons like chops and interest.

Judge Buch gives Eric no discount, but he does give a designated order. See Eric Stephen Gerencser, Docket No. 8381-14, filed 11/23/16.

No go, Eric. Your arguments are rehashes of what you argued and lost, and anyway, “…since the purpose of the appeal bond is to guarantee that the petitioner can and will pay any deficiency finally approved by the appellate courts, any alternative which justifies a reduction in the customary amount of an appeal bond must provide a means whereby the Internal Revenue Service is certain that it can collect the approved deficiency.” Order, at p. 1.

Eric can’t clear the bar. No discount.

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