Back in the early childhood development of this my blog, I discussed the sad case of Beverly Bernice Bang; see my blogpost “Bang – A Warning to Tax Matter Partners and Their Advisors,’ 1/5/11. Today Judge Ronald L. (“Ingenuity”) Buch needs small ingenuity to dispose of Trevor R. Pettennude, T. C. Memo. 2022-79, filed 7/18/22. Trev was a less-than-one-percenter in a coal shelter, which means Section 6223(b)(1) denudes him of notice or a chance to participate in contesting an FPAA at exam, Appeals, or Tax Court.

As this is all pre-2015 Bipartisan Budget Act, Trev’s guardian is the Tax Matters Partner, who is his agent for all the foregoing. If the TMP fails to tell Trev and his fellow fractionals, or fails to fight to the death for their interests, too bad. Trev’s bœuf is with the TMP…if he can find him (it’s usually him).

Alas, as Judge Ingenuity Buch quotes from an earlier case, “…the taxpayers were ‘not victims’ of the Commissioner or the Code but of ‘unscrupulous purveyors of tax shelters who, having sold [them] scam investments . . . , failed to follow procedures and disappeared with the funds.’” T. C. Memo. 2022-79, at p. 6.

Trev’s trusty attorney keeps arguing underlying liability, but that’s a non-starter. The TMP signed off on everything, hence game over.

Would an action against the TMP (assuming see above) in State Court or USDC survive SOL? If it could, could it succeed on the merits? And if it could do both, are there any getatable assets? Trev and trusty attorney may wish to ponder.

Meantime, all you highrollers in those GA boondock conservation easement syndicates, keep a close watch on your TMPs. If they look like heading for the airport and the flight to Lisbon with Letters of Transit in their hands, you know what to do. And tell ’em Bogie sent ya.