In Uncategorized on 10/05/2018 at 18:54

Giuseppe Verdi’s 1840 flop serves as the backdrop for a further look into the unsettling case of the unsettling partner. For reference, see my blogpost “Settle Order on Notice – To The Nonparticipant,” 10/26/17.

But here we have multiple nonsettlers, or maybe potential nonsettlers, because no one can find them. They were the TMP, each for a one-year term long since over, of the settling partnership some of whose eighteen (count ’em, 18) members are Capitol BC Restaurants, LLC, Banyan Equity Investors, Inc., Banyan Equity Investors II, Inc., Banyan Mezzanine Fund, LP, Banyan Mezzanine Fund II, LP, et al, Docket No.9281-17, filed 10/5/18.

Fortunately for the MIA TMPs, Judge David Gustafson, obliging as ever, is on the case, which is set for trial a week from Monday. IRS and the partners move to enter the decision document embodying the settlement.

Here’s the problem.

“To the motion is attached a certificate of service, alleging service on ‘petitioners and the following partners, including the Tax Matters Partner’, with a list of 18 names and addresses following. One of the names on the certificate of service is ‘Greg Morris / Tax Matters Partner’ (who the petition alleges is TMP for 2014) and another is ‘Richard Pawlowski’ (who the petition alleges is TMP for 2013).” Order, at p. 1.

But the trial reminders mailed by to Greg and Richard by the hardlaboring clerks at 400 Second Street, NW, came back “unable to forward.”

This troubles Judge Gustafson.

“Generally speaking, it is the duty of the TMP to apprise partners of events affecting their interests. The return of our mail to the TMPs suggests that the TMPs may similarly have not received the motion for entry of decision and may not be functioning in their capacity as TMPs.” Order, at p. 1.

So the trial is off, and IRS is directed to tell Judge Gustafson whether the Tax Matterers got served, and, if not, what to do.

May I suggest “last known address” mailing?


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