Burt Kroner is back, to receive the Section 6662(a) negligence chops at the hands of ex-Ch J L. Paige (“Iron Fist”) Marvel that 11 Cir reinstated after ex-Ch J Iron Fist tossed same for want of Boss Hossery. See my blogposts “Imaginary Friend?” 6/1/20, and “‘Positively Farcical,'” 8/2/23.

We get the name of the imaginary friend, David Haring, in Burt Kroner, T. C. Memo. 2024-41, filed 4/8/23, at p. 2. We also get the name of Burt’s trusty attorney, whom I’ll call Bobby Berns, who represented both Dave and Burt, and who told Burt that the $25 million wire transfers Burt got from Dave wasn’t reportable, as it was a gift.

Ex-Ch J Iron Fist never reached reasonable cause four (count ’em , four) years ago, so now she finds that Burt never told Bobby Berns how much he got nor when he got it. Their testimony, with no contemporaneous written confirmation, isn’t enough to stave off the chops.

“While it may not have been necessary for Mr. Kroner to provide [Bobby Berns] with a complete accounting of the size or frequency of the transfers in advance, [Bobby Berns}’s alleged overall lack of understanding of the nature of the transfers undermines the contention that Mr. Kroner provided him with necessary and accurate information before he gave advice. For one, [Bobby Berns] disclaimed any knowledge that the timing of the transfers correlated to liquidity events experienced by Mr. Haring as an investor in [Burt’s deal]. In addition, large transfers between business associates may make a business purpose more likely and a gift purpose less likely, at least under circumstances similar to those here, but [Bobby Berns] claims that he did not know the magnitude of the transfers.” T. C. Memo. 2024-41, at p. 8.

Chops sustained.