November 28, 2009
Tax Court Awards $323k in Attorneys' Fees to Two Kersting Tax Shelter Investors Because of IRS Misconduct
The Tax Court on Wednesday awarded $322,693 in attorneys' fees (after a 33.3% reduction for "overlawyering") and $15,290 in expenses under § 6673(a)(2)(B) to two Kersting tax shelter investors (Kersting v. Commissioner, T.C. Memo. 1999-197 (June 17, 1999)) for expenses incurred during the remand proceedings stemming from IRS misconduct. Hongsermeier v. Commissioner, T.C. Memo. 2009-273 (Nov. 25, 2009). Prior TaxProf Blog coverage:
- IRS Attorneys Disbarred for Misconduct in Tax Shelter Case (Aug. 23, 2004)
- WSJ: Judge Orders Government to Repay $36 Million to Airline Pilots in Tax Shelter Cases Because of IRS Misconduct (May 24, 2006)
- Tax Court: IRS Attorneys Committed Fraud on the Court (May 2, 2008)
- Hartman: "137 Pages of Utter Scandal" (May 8, 2008)
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This money should be deducted from the Executive Services Bonus Account.
Posted by: AD | Nov 28, 2009 7:47:34 PM
Great case on tax shelter litigation and IRS misconduct. In some cases I have found they "make up the law' as they go along, in others they play by the book. I enjoy your blog keep up the good work.
Posted by: Nick Paleveda MBA J.D. LL.M | Nov 29, 2009 12:40:40 PM