In Uncategorized on 05/31/2018 at 18:30

“We Have Never Found A Son-Of-BOSS Deal That Works.”

And The Great Dissenter/Concurrer, a/k/a The Judge Who Writes Like a Human Being, Master Silt-Stirrer and Old China Hand, Judge Mark V. Holmes, isn’t finding one now, in David B. Greenberg, et al., 2018 T. C. Memo. 74, filed 5/31/18, wherein are consolidated fifteen (count ‘em, 15) cases, going back thirteen (count ‘em, 13) years.

And Judge Holmes is just the judge for the task of slogging through 64 pages to unravel the tale of GG Capital and AD Global, dodges worthy of the Ivy League wiseguys who concocted them to the extent of $400 million or so of dodged taxes.

The argy-bargy concerning whether IRS should have unloaded FPAAs rather than going straight after Dave ends because Will, Dave’s sidekick, didn’t check the right boxes on the 1065s. And anyway, there was a pass-through “partner” in the deal, although at the end of the day, the whole thing was a sham to manufacture losses.

It’s the usual digital options game, with a “sweet spot” that can never happen, as the counterparty to the option can easily cause the “sweet spot” to miss.

I’m not going to try to digest 64 pages of same-old, same-old, except to note that the civil case was delayed on the criminal side. Dave was indicted for setting up phony tax deals for a Big Four back in ’07 but acquitted, and Will, who had skipped to Portugal, was never indicted. It was a waste of time. No jury in the galaxy can possibly understand this stuff, so after the fourth Excedrin, they’ll acquit.

But just as the 40% gross-valuation-misstatement chop was about to descend, IRS lost the Section 6751(b) Boss Hoss in the sun.

Judge Holmes: “Were it not for section 6751, we would find them liable for the 40% gross-valuation-misstatement penalty.” 2018 T. C. Memo. 74, at p. 64.

Ah, Judge Holmes, the silt we stir….

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