When it comes to TEFRA tohubohu, if you’re a partner there’s no advantage in hanging back. I’ve been making this point for more than ten (count ’em, ten) years. The minute you get wind of a FPAA, partner, you have to go all in.

That’s Judge Elizabeth Crewson Paris’ message to Ronald M. Goldberg, 2021 T. C. Memo. 119, filed 10/19/21.*

Ron claims he never got the NBAP, and the PS3817 proof of mailing was incompletely filled-out, but mox nix, says Judge Paris.

“… Mr. Goldberg cannot now demand a de novo review of his underlying liabilities for timely assessed partnership liabilities for multiple reasons. First, he failed to raise his underlying liabilities by timely challenging the earlier NFTL filing. Second, the FPAAs were validly issued, and Mr. Goldberg had actual notice of the TEFRA litigation but neither participated in nor made section 6223(e) elections to convert the proceedings to partner-level challenges (nor did he seek, pursuant to Rule 250, to remove the TMPs to whom he now objects).” 2021 T. C. Memo. 119, at p. 12.

Ron says 3SOL has run, and the TMP wrongfully agreed to extend. That avails Ron naught.

The question is whether a challenge to SOL is a challenge to liability. Ron is Golsenized to 7 Cir., which has held that it is. Therefore Ron had his chance. He sent a letter to IRS’ counsel during the FPAA challenging the SOL issue, but when IRS’ counsel invited Ron to get into the litigation, Ron did nothing.

I’ve said it before: a lot of Tax Court cases are lost before they ever get to Tax Court. Petitioners have to assert their claims early and often.

What will happen under the new representative regime remains to be seen, but I doubt it will favor those who hang back.

*Ronald M Goldberg 2021 T C Memo 119 10 19 21