It’s a run-of-the-mill Rule 91 motion, a show-cause why facts and evidence should not be  deemed admitted. And ex-Ch J Michael B (“Iron Mike”) Thornton grants motion, nemine contradicente. Happens all the time.

So why am I blogging Clovis Chadmar Partners, LLC, Charles R. Lande, Tax Matters  Partner, et al., Docket No. 11903-18,filed 7/16/20?

Because the order is confusing, or maybe I am easily confused.

Ex Ch J Iron Mike notes that “(P)etitioners have filed no response to the Court’s order to show cause…, even though petitioners are currently represented by counsel.” Order, at p. 1.  Well, doesn’t the need for a lawyer’s reply depend upon what the facts and evidence are? If none thereof hurts the client, or if objection would invoke a Section 6673 delay-of-the-game chop, why waste time or money replying? Besides, aren’t the facts and evidence already stipulated?

Ex-Ch J Iron Mike says so, unless I’m much mistaken. He orders “the facts and evidence set forth in the stipulation of facts attached as Exhibit A to respondent’s motion to show cause” are deemed admitted. Order, at pp. 1-2. Well, if the facts and evidence are stipulated, which to me means agreed to by both parties and assented to in writing, why agree twice? Or is this stipulation only a proposed stipulation, not consented to? Then opposing counsel’s non-response would evoke comment.

But there’s always the strategic thought that petitioners’ counsel is giving IRS rope wherewith to do the cliché. See my blogpost “Short Sale – Part Deux,” 7/13/20, where a weasel-worded sentence in a stip torpedoed a bunch of chops.

Once again, dear friends and followers, stipulate…don’t capitulate.