Attorney-at-Law

NOT IN THE CARDS

In Uncategorized on 12/06/2016 at 17:33

Judge Holmes is wandering outside the record, and verging on the loquacious, in Boris Putanec and Jeana J. Toney, 2016 T. C. Memo. 221, filed 12/6/16.

Boris was a computer hotshot, and Jeana is along for the ride, having filed MFJ.

Judge Holmes, obviously intrigued by Boris’ meteoric rise to millionairedom, regales us with arcanery such as lockups, blackouts, dead-cat bounces and tax lawyers who flog dodges and get locked up their own selves.

Boris was one of the creators of Ariba, a B2B online that was a poster child for the Great Illusion of Y2K, the dot.com boom.

“We note that this short course on Ariba’s history is drawn from extrarecord sources.  The history is for engaging background alone and is immaterial to the contested facts and issues.” 2015 T. C. Memo. 221, at p. 4.

Well, Judge Goeke got caught up in golf mania with Retief Goosen and Sergio Garcia. See my blogpost “Icon v. Iceman,” 3/15/13.

Boris wanted to cash out some of his Ariba stock while keeping most of it. So he took the road which led Mark (“Shades”) Kerman to disaster. For a much briefer account of the pitfalls dug by the Chenery gang, which ensnared Mark, and later Boris, see my blogpost “House of CARDS,” 3/8/11.

Boris crashes at the same fence as Shades. No economic substance. Pure tax dodge.

And Boris obligingly sticks his head in the noose. “Putanec was admirably honest with this admission.  At trial he even said the last redemption was done in order to get the loss so that he could ‘take [his] aggressive tax position * * * .’” 2016 T. C. Memo. 221, at p. 21, footnote 14.

But since Boris ran his redemptions of debt denominated in Euros through traded currency options, he does get to deduct his Section 1256 mark-to-markets.

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