Alan Hamel and Estate of Suzanne Hamel, Deceased, Alan Hamel, Special Administrator, T. C. Memo. 2024-62, filed 6/3/24, are caught in two time warps, and neither one helps. Judge Christian N. (“Speedy”) Weiler explains.

Alan and the late Suzanne (before she became the late Suzanne) were caught up in a son-of-BOSS digital option dodge, Palm Canyon X, years ago. After Alan and Suzanne got a SNOD, IRS gave the partnership an FPAA which featured a bunch chops (hi, Judge Holmes). These were litigated in Tax Court fifteen (count ’em, fifteen) years ago and affirmed in DC Cir.

Judge Speedy Weiler determined that the 1997 amendments to Section 6221 made chops a partnership-level matter in FPAAs, whether same were merely computational or required individual fact-finding at partner level. No SNOD required, and no separate partner-level proceeding required. All this of course is pre-Bipartisan Budget Act of 2015, which leveled the levels post-1/1/18. Alan and the late Suzanne are bound by the old decision, which Tax Court cannot now alter.

But what about 3SOL? The SNOD here is well beyond, but IRS claims Alan and the late Suzanne were unidentified partners. They hadn’t furnished IRS with information required by Reg. Section 301.6229(e)-1T, and no incorporation by reference of other documents has any effect.  That IRS sent Alan and Suzanne an NBAP doesn’t mean they satisfied the identification requirements of the aforementioned Reg.

Alan’s and the late Suzanne’s arguments that IRS knew all along were defeated in Gaughf Props., LP. See my blogpost “A Busy Day,” 9/10/12.

So chops are off the menu, but deficiencies are definitely on.