Recent Tax Law Decisions

In a tax case where the IRS issued a Notice of Final Partnership Administrative Adjustment based on its determination that the defendants implemented an illegal tax shelter and misstated certain information on its tax documents which resulted in significant tax underpayments, district court did not err in finding that the defendants had reasonable cause for its tax position, and, consequently, that it was not subject to the accuracy-related penalty in 26 U.S.C. section 6662.   

Read Am. Boat Co., LLC. v. US, No. 09-1109

Appeals from the United States District Court for the Southern District of Illinois

Argued May 28, 2009
Decided October 1, 2009

Judges

Before Bauer, Flaum, and , Kanne, Circuit Judges

Opinion by Bauer, Circuit Judge

Conviction for obstructing the administration of the IRS, filing false IRS forms, and passing phony financial instruments with the intent to defraud is affirmed where: 1) the delays in defendant's trial did not violate the Speedy Trial Act as the the district court was permitted to exclude at least thirty days to resolve multiple pretrial motions; 2) the indictment for defendant's conviction for obstructing the due administration of the IRS is not duplicitous as the indictment solely charges a violation of the omnibus clause of 26 U.S.C. sec. 7212(a); 3) the indictment sufficiently charged that defendant willfully made and subscribed false statements on IRS forms in violation of 26 U.S.C. sec. 7206(1); and 4) the court correctly applied Daubert and allowed the expert testimony.   

Read US v. Pansier, No. 07-3771

Appellate Information
Appeal from the United States District Court for the Eastern District of Wisconsin.
Argued September 9, 2008
Decided August 12, 2009

Judges
Before FLAUM, WILLIAMS, and SYKES, Circuit Judges.
Opinion by WILLIAMS, Circuit Judge.

In an appeal from the District Court's order denying Petitioner's motion to quash an IRS subpoena, the order is affirmed where the services provided to Petitioner by its accounting firm constituted "promotion of a tax shelter" under 26 U.S.C. section 7525(b)(2), and thus the tax practitioner-client privilege did not protect the documents at issue.

Read the full decision in Valero Energy Corp. v. US, No. 08-3473.

Appellate Information:

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division.
No. 06 C 6730--Matthew F. Kennelly, Judge.
ARGUED FEBRUARY 18, 2009
DECIDED JUNE 17, 2009

Judges:

Before ROVNER, EVANS, and TINDER, Circuit Judges.

Opinion by EVANS, Circuit Judge.