A couple hints (hi, Judge Holmes) from today’s Orders pile.

Judge Patrick J. (“Scholar Pat”) Urda turns over the other side of the “win-your-case-at-discovery” coin in Lontrac Enterprises, LLC, Lontrac Investors, LLC, Tax Matters Partner, Docket No. 272-18, filed 2/22/24. Lontrac’s  trusty attorneys get run over by Greenberg’s Express as they attempt to go into what happened at audit. Whether their client cooperated at exam sufficiently to shift BoP per Section 7491 is best left for trial. True, IRS was parsimonious with reasons why the “Examination Plan Issue Leadsheet” is privileged, so they can explain that. But the free-swinging demands for. depositions of IRS personnel and production of their employment files are out. Reminder: Tax Court is neither Judge Judy nor does it try PI cases.

Btw, Lontrac’s trusty attorneys are recognized by national publications as “Ones to Watch.” Definitely.

Judge Tamara Ashford calls Cassandra Tucker & Edward Brodie, Docket No. 7896-19, filed 2/22/24, offside, when they seek to have her determine the amount of an appeal bond after they filed their notice of appeal. Cass & Ed wanted the bond to be no greater than IRS’ computations at the Rule 155 beancount.

“Section 7485(a)(1) provides that the taxpayer must file with the Court ‘a bond in a sum fixed by the Tax Court not exceeding double the amount of the portion of the deficiency in respect of which the notice of appeal is filed, and with surety approved by the Tax Court, conditioned upon the payment of the deficiency as finally determined, together with any interest, additional amounts, or additions to tax provided for by law.’ Similar to Rule 192, section 7485(a)(1) further provides that the bond must be filed ‘on or before the time [the] notice of appeal is filed’ with the Court.” Order, at p. 1.

Cass & Ed are too late with their motion, so no bond. Now IRS can go levy, right? Yes, but Cass & Ed can buy some time if they go to Appeals on the NITL and petition the NOD affirming. What about a lien? The lien remains, because there’s no stay on assessment of the tax as decided in the Rule 155 without a bond, per Section 7485.

Edited to add, 2/22/24: I’d almost forgotten Cass’ & Ed’s prior appearance in this my blog back in 2023.