Attorney-at-Law

CONCEDE, IF YOU MUST

In Uncategorized on 05/13/2019 at 16:53

But Be Reasonable

Fred B. Barbara and Lisa M. Barbara, 2019 T. C. Memo. 50, filed 5/13/19, had a trusty attorney, whom I’ll call John. John gets Fred into the materially-participated charmed circle, so his money-lending business’ NOL from a closed year is portable to the open years at issue.

But getting there wasn’t half the fun, the old Cunard commercial to the contrary notwithstanding. Fred and Lisa made some concessions, but all John argued was that Fred was reasonable in claiming he materially participated, not that he was reasonable in every position he took, even though he later folded some of them.

Of course, Fred and Lisa are OK on the materially-participated front, so they were more than reasonable – they were right.

But IRS got the Section 6751(b) Boss Hossery right, wherefore the Section 6662(d)(1) five-and-ten chops for the whole picture will await the Rule 155 beancount Judge Morrison orders.

“There were other adjustments in the notice of deficiency that are unrelated to whether Mr. Barbara materially participated in the lending business.  Many of these adjustments were conceded by the Barbaras and could result in underpayments for the years at issue.  However, the Barbaras did not argue that the reasonable-cause exception applies to any portions of underpayments due to these conceded adjustments.  The Barbaras did not propose findings of fact regarding these conceded adjustments.  The record does not show that the reasonable-cause exception applies to these conceded adjustments.  The Barbaras did not make any arguments on brief about these conceded adjustments or the applicability of the reasonable-cause exception to these conceded adjustments.  In summary, the Barbaras do not argue, and the record does not support, the applicability of the reasonable-cause exception as to these conceded adjustments.” 2019 T. C. Memo. 50, at pp. 9-10.

All y’all will recall that IRS often folds in a case, but when the prevalent party asks for Section 7430 legals and admins, IRS routinely claims justification (reasonableness?), even when they folded right after the petition his the table. And IRS gets the win, even when they were wrong.

I’m not singling John out. The only football position I ever played is Monday morning (or afternoon, in my case) quarterback.

Takeaway- Your client, was, is, and always will be utterly reasonable, at all times, in all places, in every position they took or will take.  Even when they fold.

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: