Attorney-at-Law

SUBSTANTIAL UNDERSTATEMENT

In Uncategorized on 10/21/2019 at 15:35

Doesn’t Work for Whistleblowers

Vincent J. Apruzzese, 2019 T. C. Memo. 141, filed 10/21/19, claims that, in the course of suing the adm’rs/ex’rs of a certain estate, he turned up substantial undervaluation of estate assets, which had been sold for invalid installment notes.

IRS was about to “No Change” the 706, which was under audit, when Vince’s Form 211 swam into their ken.

IRS took Vince’s ammo and fired it, to the tune of $424K disgorged by the adm’rs/ex’rs. And IRS stumped up 22% thereof to Vince, admitting that, without Vince connecting the dots and shining the flashlight, the fisc would have folded.

So why is Vince suing? He’s not grousing about how much he got on this award. He’s claiming IRS could have gotten a lot more. So Vince wants Judge Vasquez to order IRS to squeeze the adm’rs/ex’rs harder, so that more goodies would fall to the fisc (and maybe a small piece to Vince).

Nonstarter.

Judge Vasquez: “While we have jurisdiction to review the Commissioner’s award determination, we do not have authority to ‘review the Commissioner’s determinations of the alleged tax liability to which the claim pertains.’  Nor do we have authority ‘to direct the Secretary to proceed with an administrative or judicial action.’ 2019 T. C. Memo. 141, at p. 9 (Citations omitted).

Vince got his award, and had no quarrel with the amount thereof.

It may be that the IRS attorney on the estate audit was a wee bit less than ultimately aggressive, but Judge Vasquez cannot second-guess him.

Of course, since IRS put five (count ‘em, five) attorneys on this barrel-shoot of a case, against Vince, who was pro se, mayhap IRS might want to consider putting a few more horses in harness on the Estate & Gift Stagecoach, and leave such cases as this to one attorney.

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