I am sure the nine (count ’em, nine) trusty attorneys for Palmwood Holdings, LLC, Palmwood Investments, LLC, Partnership Representative, Docket No. 17489-23, filed 2/3/26, will echo the words sung by the late great Johnny Cash, first set forth hereinabove at the head hereof (as such high-priced attorneys would say) after hearing the admonition of Ch J Patrick J. (“Scholar Pat”) Urda set forth at p. 5 of the aforesaid Order.

It’s the usual IRS motion for Boss Hossery summary J, with a twist. IRS tries a double-pump, first going for summary J per Section 6662(c), (d), (e), and (h), the usual 20-40 accuracy-negligence-over/undervalue mix. Trusty attorneys fold that one, but IRS’ answer adds the Section 6663 75% fraud chop.

Trusty attorneys raise doubts as to who decided what when, and accuracy of supe signoff. But these echo arguments rejected in an order in an earlier unrelated case (which I did not blog). Ch J Scholar Pat reminds trusty attorneys that these arguments are routinely blown away in Tax Court. And he blows these away, too.

Now for the admonition.

“Having dispatched Investments’ argument as a legal matter, we pause to remind Investments’ counsel that accusing officers of the Court of untruthfulness is a very serious accusation and requires strong support. In this case, the accusation (‘Investments has reason to believe that [the Commissioner’s] assertion regarding the initial determination is not true.’) was leveled in an ill-conceived attempt to obtain discovery on a point that our precedent has repeatedly shown to be irrelevant. Worse yet, the purported smoking gun supporting this accusation—an email from three years prior involving a different taxpayer, a different property, and different

IRS personnel—has nary a connection to this case. Counsel who engage in such tactics risk losing their credibility with, and the patience of, the Court.” Order, at p. 5.

A source informs me that one of said trusty attorneys actually reads this my blog.

Taishoff says that the line between zealous advocacy and “such tactics” can be a fine one. While the “zealous advocacy” of the old Code of Professional Responsibility has been superseded by “competent representation” in ABA Model Rule 1.1, an attorney must make any honestly colorable argument, unless vetoed by the client. 

All attorneys walk the line.