In Uncategorized on 02/27/2020 at 16:32

It is hardly a secret that I like to spend an occasional evening having a drink or two with colleagues. We brain-pick, theorize, and swap anecdotes. As I re-read today’s Sum. Op. from STJ Daniel A. (“Yuda”) Guy, I recollected a remark from a colleague about his former client X. “The judge told me that X was ‘a thoroughpaced scoundrel.’ I replied, ‘Your Honor, that might be; but he is still entitled to due process of law.’”

For that reason, I am glad that STJ Yuda took the trouble to defuse the two arguments of Friday O. James, 2020 T. C. Sum. Op. 11, filed 2/27/20.

STJ Yuda simply could have defaulted Friday, as he didn’t show up for trial on August 9, 2019. Friday certainly didn’t show, nor did he give proper notice of change of address. But Friday had been deported to his native Liberia in July, 2018, after doing 36 months in the Federal slammer for Section 7206 aiding and abetting.

Friday ran a tax prep operation that churned out around 2K returns for the two years at issue. IRS found 150 of them were, to put it politely, counterfactual. “…IRS opened a criminal investigation and interviewed several of petitioner’s clients.  Some of those clients informed the IRS that petitioner had ignored or altered tax information that they had provided to him and improperly claimed the FTH credit and various deductions.” 2020 T. C. Sum. Op. 11, at p. 3. “FTH” is first-time homebuyer credit/deduction/loan, a now-extinct species of unguided largesse that afforded Friday a golden opportunity for fictionalizing.

OK, clearly Friday is not without sin.

However, the Section 6701 chops he’s fighting are assessables, so Friday gets no SNOD, but can fight the penalties in a CDP.

First, he got the chops while he was appealing his criminal conviction. But that’s OK, because the civil chops are independent of the criminal penalties. Y’all will remember Martin Kapp, the scourge of the seas, who went down to the tune of $3 million Section 6701s, no? No? Then see my blogpost “The Rogues’ March – Part Deux,” 7/9/19. Martin also hit into a double play.

Second, Friday claims that there’s only a single $1000 Section 6701 per year. No, Friday, it’s one per return per year, but only one per client.

Of course, Appeals did all the right stuff. The RA put in an 8278 and got it Boss Hossed.

Perhaps Friday left some cash and other goodies behind, and that’s what IRS is chasing.

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