Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Twenty-Two Strategic Investment Funds v. United States

United States Court of Appeals, Ninth Circuit

June 7, 2017

Twenty-Two Strategic Investment Funds, Petitioner,
v.
United States of America, Respondent-Appellee. and Birch Ventures, LLC; Tom Gonzales, Intervenors-Appellants,

          Argued and Submitted May 18, 2017 San Francisco, California

         Appeal from the United States District Court, No. 3:05-cv-02835-RS for the Northern District of California Richard Seeborg, District Judge, Presiding

          Mark Wray (argued), Law Offices of Mark Wray, Reno, Nevada, for Intervenors-Appellants.

          Andrew M. Weiner (argued) and Thomas J. Clark, Attorneys; Tax Division, United States Department of Justice, Washington, D.C.; for Respondent-Appellee.

          Before: Sidney R. Thomas, Chief Judge, Kim McLane Wardlaw, Circuit Judge, and Cathy Ann Bencivengo, [*] District Judge.

         SUMMARY[[**]

         Tax

         The panel affirmed the district court's judgment in an action raising a statute of limitations challenge to the Internal Revenue Service's determination of tax liabilities in a partnership level proceeding under the Tax Equity and Fiscal Responsibility Act.

         In 2002, the IRS began investigating what it later determined to be a tax sheltering scheme and issued Final Partnership Administration Adjustments (FPAAs) to many of the limited liability companies (LLCs) that participated in that scheme. The adjustments effectively disallowed tax losses sustained through involvement in the scheme, and resulted in substantial tax liability for the LLCs. The tax matters partner for the funds that constituted the tax shelters challenged the disallowance of losses.

         Taxpayers, an individual investor (Tom Gonzales) and his single-member LLC (Birch Ventures), intervened in the action. The partnership tax return at issue was filed on April 16, 2001. Absent an extension on the statute of limitations, the IRS had until April 16, 2004, to assess taxes with respect to that return. Gonzales personally signed two consents to extend the limitations period, and the IRS issued a FPAA after the initial limitations period expired but within the extension granted by the consents.

         The panel held that the statute of limitations extensions signed by Gonzales were valid. The panel reasoned that an alleged third-party conflict of interest, without more, does not vitiate the individual consent personally executed by a taxpayer and that, even crediting Gonzales's allegations in this case, the alleged actions by the IRS do not constitute legal duress warranting relief.

          OPINION

          THOMAS, Chief Judge:

         We consider in this case whether consents to extend the statute of limitations for the assessment of tax attributable to a partnership item, signed by the taxpayer-partner, are invalid because of a third party's alleged conflict of interest or duress. Under the circumstances presented by this case, we ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.