IRS Announces "Groundbreaking" OPR Settlement with Municipal Bond Lawyers

The IRS today announced (IR-2007-197) that the Office of Professional Responsibility has reached a "groundbreaking" settlement with Michael Ormsby and David Thompson in connection with a $31 million municipal bond issuance. OPR raised allegations, including the scope of due diligence under Circular 230, with respect to the tax aspects of the bond opinion rendered in the transaction. The bond issue involved River Park Square in Spokane, Wash., in 1998, handled by the former firm of Preston, Gates & Ellis (firm history via Wikipedia).