For backstory, see my blogpost “A Hill of Beans,” 10/16/19.* Judge Elizabeth Crewson Paris sent IRS and the Aggies off to do a Rule 155 beancount (geddit?).
They ask for an extension.
Five (count ’em) five years later, they are still on extension, as they can’t agree how to allocate the DPAD against the DPAI of the four-member Expanded Affiliated Group taking into account patronage and nonpatronage activities, “including the EAG members’ distributive shares of relevant items from partnerships and limited liability companies (LLCs).” Order, at p. 2.
Oh yes, the case is Ag Processing, a Cooperative and Subsidiaries, Docket No. 23479-14, filed 1/17/25, going into its eleventh year, with years at issue well into their later teens. If the Aggies didn’t deposit to stop interest, anything short of an outright win will be far worse than if they’d paid the tax to begin with.
Anyway, perhaps the Aggies were counting on Growmark to bail them out. For the Growmark story, see my blogpost “Another Corny Cooperative,” 12/11/19.**
And they got the bailout.
“Having considered in detail all of respondent’s additional arguments in his Second Supplemental brief, the respondent has not persuaded the Court that the allocation method described in Growmark and proposed by petitioner for the Step Three allocations is incorrect.” Order, at p. 4.
A speedy resolution: took only five years. I wonder if the legal fees are less than the ultimate deficiency, if any.
Howbeit, Judge Paris has finally had enough.
“Further, because the parties have never agreed to the computations for entry of decision under Rule 155, the parties may submit their computations separately if they fail to come to an agreement and they are convinced they have reached an impasse. If that is the case, then each computation should include a supplemental brief to explain their positions, so long as those positions are not relitigating a matter previously decided by this Court in either this case, AG Processing, Inc., or Growmark, Inc.” Order, at p. 4.
And have it in by 2/28/25.
Taishoff Law 