In Uncategorized on 09/21/2021 at 15:14

The Bipartisan Budget Act of 2015 obliterated TEFRA, the 1983 multi-level litigation breeder, so complex that Congress had to insert a provision (Section 6231(g)(2)) in case IRS couldn’t figure out what was subject to TEFRA and what wasn’t. See my blogpost “Bamboozle Your Way to Victory,” 4/27/20.

But the demise of TEFRA (albeit to thunderous applause from all non-bamboozlers) via bipartisanship left us, in one respect at least, with the same problem we had before: the AWOL tax matterer (now representative). I told the story in my blogpost “The Case of the Missing Tax Matterer,” 7/26/21.

And the adventure continues. Today, Judge Alina I. (“AIM”) Marshall must again grapple with the attempt of GM Investments III, LLC (and its managing member, whom I’ll call Gerry) to sub in for the missing John Sfondrini, in Colorado Land and Holdings LLC, John Sfondrini, Tax Matters Partner, Docket No. 11875-20, filed 9/21/21*.

Counsel (exactly for whom is still unclear) wants to substitute parties and amend the caption, so as to get a stiped decision filed and the case closed. He must want it very much, as my sources tell me Gerry is his senior law partner, known as a visionary; “your wish is my command” is a very feeble description of what counsel must be going through.

But counsel needs more time to assemble the partnership paraphernalia to establish that Gerry’s LLC is in fact the new tax matterer for the CO landholders. So Judge AIM holds the motion in abeyance while counsel scrambles.

At the risk of being Captain Obvious, I suggest that drafters of LLC operating agreements (or partnership agreements, or their equivalents in your jurisdiction) provide clear paths of succession for their tax representatives, as well as certification procedures, all as simple as necessary.

*Colorado Land 11875-20 9 21 21


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