In Uncategorized on 10/29/2018 at 17:19

The old DeBeers slogan certainly applies to TEFRA. Though supposedly put out of its misery by Congress three years ago, the 1983 dinosaur lumbers on.

First up, Trust u/w/o BH and MW Namm f/b/o Andrew I. Namm, Andrew I. Namm and James Doran, Trustees, Transferee, et al., 2018 T. C. Memo. 182, filed 10/29/18. You’ll remember Andy & Co. from my blogpost “No Fishing,” 7/18/18, but now Andy is going after bigger fish than IRS’ files on his white-slippered advisers. Andy wants SOL tossing the Section 6901(c) transferee liabilities levied on his nine (count ‘em, nine) consolidated co-petitioners.

It’s the Section 6229(a) TEFRA SOL extender vs the Section 6501 standard 3SOL. I’ll spare you 33 (count ‘em, 33) pages of Judge Albert G (“Scholar Al) Lauber’s “somber reasoning and copious citation of precedent,” as he holds that the longer period obtains, and Andy and the als must go to trial (or maybe settle).

Next is that classic TEFRA DADs case, Sugarloaf Fund, LLC, Jetstream Business Limited, Tax Matters Partner, et al, 2018 T. C. Memo. 181, filed 10/30/18, from the neighborhood that lives forever, Mr. John E. Rogers’ neighborhood. Judge Goeke will grow old on this one, along with the rest of us.

But it’s been great blogfodder.

For the three (count ’em, three) years at issue, Judge Goeke has to decide “…whether Sugarloaf should be recognized for tax purposes, who Sugarloaf’s partners are and who is taxed on its income, whether Sugarloaf revenue should be subject to self employment tax, whether various FPAA adjustments reducing expenses should be sustained, and whether the penalty under section 6662(a)3 should apply.” 2018 T. C. Memo. 181, at p. 2.

Well, Mr Rogers “rolledup” various investors in his other schemes, without consulting them or getting their consents, into Sugarloaf, which he totally controlled. He also controlled Jetstream, which owned Sugarloaf, and took in and dropped out other Sugarloaf partners as his whimsy led him.

Needless to say, there never was a partnership between Mr. Rogers and the Brazilian tapped-out creditors who sold him their junk. So Mr Rogers gets Sugarloaf income, with tax and SE thrown in. He does get some deductions he paid to various counsel, but none for fostering and exploiting his nefarious schemes.

IRS gets two years’ worth of Section 6662(a) chops, but blows the Section 6751(b) Boss Hoss on the third. Though IRS tries to wild-card in approval post-initial assessment, that meets with Graev difficulties.


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