Judge Mark V. Holmes believes he’s seen the last shot in Cannon Corporation and Subsidiaries, Docket No. 12466-16, filed 8/11/23. Cannon and the subs are still fighting over Rev. Proc. 2011-14, 2011-4 I. R. B. 330, and Rev. Proc. 2012-39, 2012-41 I.R.B. 470.

It’s a tangled trail, and I haven’t blogged every step. Howbeit, check out my blogpost “No Method, No Madness,” 6/5/18, for a general view. And as deliberative privilege plays a role in denying the Cannons’ second attempt to get document discovery, see my blogpost “The Stealth Boss Hoss,” 4/3/20. The current iteration is to be found in the Order, at pp. 3-4.

Judge Holmes says he’s already decided the plain language of Rev. Proc. 2011-14 says that Form 3115 change in accounting method can’t be used to shoehorn multiple years’ Section 179D deductions into a single year. And the Cannons did properly file Forms 1120X for all but one year (but that the year with the biggest deduction) of the six (count ’em, six) years at issue.

The Cannons claim IRS drew them offside, but Judge Holmes isn’t taking it.

Looks like the Cannons fired their last shot.