Maybe it’s not a new tactic to my hyper-sophisticated readers, so I apologize for treating a well-worn move as a novelty, but I see that my high-powered white shoe colleagues put more stock in keeping privileged communications privileged above invoking the good-faith reliance defense (GFRD) to Section 6662 chops. See my blogpost “A Note of Sympathy,” 11/14/24*.

Here, the trusty attorneys for Harman Road Property, LLC, Capital Conservation Partners II, LLC, Tax Matters Partner, et al., Docket No. 12304-20, filed 12/6/24, Tax Court habitués, even concede IRS’ motion in limine to bar an entire expert’s report in support of the GFRD, in order to moot out IRS’ document demand, which it filed as a protective measure if they lost the motion in limine.

And said trusty attorneys even agree to striking part of the Petition (part not stated, but probably allegations in support of GFRD).

Clear? Thought not.

Judge Christian N. (“Speedy”) Weiler buys the GFRD concession, but wants to know if he needs to deal with the document demand, or can just treat that and anything else as moot.

Judge, Taishoff says it’s moot, the parties made a deal. Probably trusty attorneys are going for for a good outcome on the deficiency, whether at trial or settlement, so can go for a minimal (say 10% valuation) chop. More of this kind to come?

* https://taishofflaw.com/2024/11/14/a-note-of-sympathy/