In Uncategorized on 03/01/2023 at 20:30

Discovery geeks, rejoice! Judge Alina I (“AIM”) Marshall has a potpourri of handy hints, hacks, and hoot ‘n’ hollers for y’all. Here’s Jackson Stone South, LLC, Jackson South Investments, Docket LLC, Tax Matters Partner, Docket No. 12271-20, filed 3/1/23.

The Jackson Stones have the first team defending their $19 million conservation easement write-off on some SC scrub. IRS is using its latest ploy, the salami summary J, whereby IRS seeks partial summary J on a single issue at a time. Here in The Empire State the judges can rein in such gameplaying. Judge AIM Marshall gives IRS summary J only that the FPAAs are valid, as they were served on all hands, both past TMP and present TMP. Query whether Forms 8822-B, Change of Address or Responsible Party—Business, are alone sufficient to override the TMP designation in the last-filed 1065. See Reg. Section 301.6223(a)-1(a)(1). Howbeit, IRS tagged all baserunners, and any extra FPAAs are mere surplusage. See my blogpost “The TMP Is Dead – Long Live?” 2/17/16.

Boss Hossery is in play, especially as overvaluation chops hover vulture-like. But the Jackson Stone’s trusty attorneys demand IRS pony up the Designation to Act or Notification of Personnel Action (SF-50) for MMC to serve as Supervisory Internal Revenue Agent in the Small Business/Self-Employed (SB/SE) division of the IRS for the RA who proposed the chops. IRS demurs, claiming unduly burdensome, but Judge AIM Marshall says pony up, along with other requested documents.

IRS can’t depose the ex-TMP, as they can’t show they couldn’t get the info via interrogatories. Depositions of nonparties are extraordinary.

But the ex-TMP must respond to the document subpoena, either by handing over documents or saying he hasn’t got any. His attorney stated at a hearing that ex-TMP handed everything to successors, but that’s not enough. Either move to quash or ante up.

There’s case-specific argy-bargy about IRS’ responses to interrogatories. Judge AIM Marshall says IRS’ pre-trial memo, experts’ reports,. and rebuttal reports have been filed since the Jackson Stones served their interrogatories, so they have what they need.

Discovery geeks, this is your kind of order.

Word to Ch J Kathleen (“TBS = The Big Shillelagh”) Kerrigan: While you’re scrutinizing ex-Ch J Maurice B (“Mighty Mo”) Foley’s proposed revisions to the Rules from a year ago, you might want to consider our Excelsior approach to summary J. Judges can establish cutoff dates for such motions. Might prevent salami slicing.


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