department of the treasury - ug a internal_revenue_service washington d c contact person identification_number telephone number fax number t eo bi employer_identification_number tax_exempt_and_government_entities_division date a egend i n o e n t o f u o t o g m i m o z u dear sir or madam we have considered your request for rulings as to the consequences of several proposed transactions on your exempt status under sec_501 of the internal_revenue_code and your classification as other than a private_foundation under sec_509 of the code facts a owns and operates a comprehensive general acute care hospital facility and adjacent professfonal office building a is an organization exempt from federal_income_tax under sec_501 of the code and is other than a private_foundation within the meaning of sec_509 and sec_170 of the code bis a primary care group practice that was formed by a in to support its charitable scientific and educational_purposes and is currently administered for the benefit of a its sole member b serves as the physician services component of a's integrated health care delivery system b has assets consisting principally of cash accounts_receivable intangible assets office furniture and medical equipment a board_of directors appointed by a governs b b is and has been at all times since its founding an organization described in c of the code - that is not a private_foundation because it is a supporting_organization described in sec_509 of the code c was organized in to solicit and receive bequests to finance construction projects c also owns or activities in furtherance of a's operations and to hold funds for the benefit of a the buildings used by b and jeases property to b and one of its subsidiaries ais the sole member of c and elects its board_of directors c is an organization described in c of the code that is not a private_foundation because it is a supporting_organization described in sec_509 of the code d is a texas business corporation all of the stock of which is owned by c d provides management services to h and b pursuant to management agreements in addition as of date d provides management services to one independent physician d intends to expand its management services to additional independent physicians in the future e is a texas business corporation all of the stock of which is owned by a that performs functions for a that are required to be performed by a taxable entity to this end e owns a's common membership interest in f doing business as g e is currently one of four common membership owners in addition e is planning to acquire durable medical equipment for resale and lease to a and b patients as well as to other customers a proposes to undertake a reorganization of its current corporate structure to achieve certain administrative efficiencies and more fully implement an integrated system of health care delivery in connection with the implementation of this a has created h h is organized and will operate exclusively for the benefit of a in that capacity h will act as the sole member of aand will replace a as the sole member of certain a-related entities in the reorganized health care system h will enter into arrangements with a-related entities for_the_use_of facilities and space necessary for its operations a's executives will be transferred to h and will serve as executives for both h and a h will also replace a as the sole member of both band c the substitution will be reflected in the governing documents of b and c h's activities will be limited to i overall strategic planning for a and the health care system including establishing and coordinating policies that will be implemented by a-related entities that are part of the health care system ii supervising on a limited basis the operations of a-related entities that are part of the health care sygtem iii providing management services to a and related entities including the management of the health care system wide funds iv making distributions to a and related c entities that are part of the health care system and v ensuring that all activities of all a-related entities are in the best interests and in support of a support to entities that are unrelated to a although no transfers of non-cash assets are currently planned it is possible that certain a-related entities may transfer non-cash assets to h and ail or a portion of such assets may be subsequently transferred to another a related_entity hwill not provide services or se - rulings requested the following rulings are requested the reorganization and the resulting corporate structure will not result in the revocation of or otherwise adversely affect the continued status of a as an organization described in sec_501 of the code nor will it adversely affect the status of b or as organizations described in sec_501 c the reorganization and resulting corporate structure will not cause a to lose its nonprivate foundation status under sec_509 and sec_170 of the code nor will it cause b or c to lose their nonprivate foundation status under sec_509 of the code any transfers of funds assets services and or personnel in connection with the reorganization will not jeopardize the continued status as an organization described in sec_501 of the code as applicable of the organization providing such funds assets services and or personnel any transfers of funds assets services and or personnel will not adversely affect the continued nonprivate foundation status of a b or c under sec_509 or sec_509 of the code as applicable any payments for transfers of funds assets services and or personnel in connection with the reorganization will not generate unrelated_business_taxable_income under sec_511 through of the code law and analysis sec_501 of the code exempts from taxation organizations described in subsection c including corporations organized and operated exclusively for charitable and educational_purposes furthermore the aforementioned subsection requires that no part of the organization's net_earnings inure to the benefit of any private_shareholder_or_individual that no substafitial part of its activities is to influence legislation and that it does not participate in any political campaign on behalf of or in opposition to any candidate for public_office revrul_69_545 1969_1_cb_117 has established that an organization that engages in activities that promote health in the community may be considered to have a charitable purpose within the meaning of sec_501 in revrul_74_132 1974_1_cb_152 the service stated that an organization whose purpose was to sponsor specific projects and programs to improve hospital services to its patients and to support and promote the hospital's education training and research programs qualified for exemption in revrul_69_463 1969_2_cb_131 a hospital derived income from leasing office space in an adjacent office building to a medical group although the medical group served on the hospital's medical staff and used the leased -4- facilities to provide medical services to its private patients the service concluded that any income received by the hospital was substantially related to the hospital's exempt_purpose see also revrul_69_464 1969_2_cb_132 leases of office space by an exempt hospital to members of its medical staff who contribute importantly to the hospital's exempt functions are not considered business leases within the meaning of sec_514 as then in effect in revrul_78_41 1978_1_cb_117 the sole purpose of a_trust was to accumulate and hold funds for use in satisfying malpractice claims against a hospital the revenue_ruling determined that the trust was an integral part of the hospital because it was controlled by the hospital and was performing a function that the hospital could perform directly and thus was exempt under sec_501 the ruling's treatment of the trust as exempt is consistent with sec_1_502-1 of the treasury regulations regulations which provides that if a subsidiary_organization of a tax-exempt_organization would itself be exempt on the grounds that its activities are an integral part of the exempt_activities of its parent that exemption will not be adversely affected if as a matter of accounting the subsidiary derives a profit from its dealings with the parent organization sec_170 of the code refers to an organization whose principal purpose or function is the provision of medical or hospital care sec_509 of the code provides in pertinent part that an organization will not be considered to be a private_foundation if it is an organization described in sec_170 other than clauses vii and viii sec_509 of the code excludes from the definition of a private_foundation an organization that a is organized and at all times thereafter is operated exclusively for the benefit of to perform the functions of or to carry out the purposes of one or more organizations described in sec_509 or b is organized supervised or controlled by or in connection with one or more organizations described in sec_509 or and z 4c is not controlled directly or indirectly by one or more disqualified persons as defined in sec_4946 other than foundation managers and other than one or more organizations described in sec_509 or sec_509 _ sec_1_509_a_-4 of the regulations provides in pertinent part that in order to be classified as an organization described in sec_509 an organization must stand in one of the designated relationships to its supported_organization it must be either i operated supervised or controlled by ii supervised or controlled in connection with or 2s - re iii operated in connection with one or more publicly supported organizations sec_1_509_a_-4 of the regulations provides that a supporting_organization will be considered as being operated in connection with one or more publicly supported organizations only if it meets the responsiveness test and the integral part test as defined thereafter in sec_1_509_a_-4 and respectively the responsiveness test requires that the supporting_organization be responsive to the need or demands of the publicly_supported_organization meaning inter alia that a one or more officers directors or trustees of the supporting_organization are elected or appointed by the officers directors trustees or membership of the publicly_supported_organization b one or more members of the governing bodies of the publicly supported organizations are also officers directors or trustees of or hold other important offices in the supporting_organization or c the officers directors or trustees of the supporting_organization maintain a close and continuous working relationship with the officers directors or trustees of the publicly supported organizations and d by virtue of a b or c the officers directors or trustees of the publicly supported organizations have a significant voice in the investment policies of the supporting_organization the timing of grants the manner of making them and the selection of recipients of such supporting_organization and in otherwise directing the use of the income or assets of such supporting_organization sec_1_509_a_-4 and ii of the regulations the integral part test requires that the supporting_organization maintain a significant involvement in the operations of one or more publicly supported organizations and such publicly supported organizations are in turn dependent upon the supporting_organization for the type of support which it provides meaning that inter alia the activities engaged in for or on behaif of the publicly supported organizations are activities to perform the functions of or to carry out the purposes of such organizations and but for the involvement of the supporting_organization would normally be engaged in by the publicly supported organizations themselves section sec_1 a i i and ii of the regulations sec_511 imposes a tax on the unrelated_business_income of organizations described in sec_501 sec_512 defines unrelated_business_taxable_income as the gross_income derived by an organization from any unrelated_trade_or_business regularly carried on by if less the allowable deductions that are directly connected with the carrying on of the trade of business with certain modifications sec_512 provides that rents_from_real_property and incidental related personal_property are not treated as unrelated_business_income unless the real_property is debt-financed under sec_514 sec_514 defines debt-financed_property as any property that is held to produce income and with respect to which there is acquisition_indebtedness at any time during the taxable_year debt financed property does not include any property substantially related to the exercise or performance by such organization of its exempt purposes 2s sec_512 exempts from the definition of unrelated_business_taxable_income income from the sale exchange or other_disposition of non-inventory items and items not held for saie in the ordinary course of business sec_513 defines an unrelated_trade_or_business as any trade_or_business the conduct of which is not substantially related aside from the need of the organization for funds or the use it makes of the profits derived to the exercise of the organization's exempt purposes or functions sec_1_513-1 of the regulations provides in part that a trade_or_business is related to exempt purposes only where the conduct of the business activities has a causal relationship to the achievement of exempt purposes and it is substantially related for purposes of secffon only if the causal relationship is a substantial one thus for the conduct of trade_or_business from which a particular amount of gross_income is derived to be substantially related to purposes for which exemption is granted the production or distribution of goods or the performance of the services from which the gross_income is derived must contribute importantly to the accomplishment of exempt purposes following the reorganization the activities of a and its affiliated entities will continue to further a’s exempt health care purposes a will continue to provide health care to the community by operating a licensed acute care hospital with a full service emergency room and by providing medical treatment education and research likewise b will continue to be organized and operated exclusively to benefit a by serving as the physician services component of a's integrated health care delivery system as reflected in its governing documents -and c will continue to be organized and operated exclusively to benefit a by soliciting and receiving bequests to finance construction projects and to hold funds for a and to lease property to other a-related entities as reflected in its governing documents h will oversee the activities of a-related entities will participate in establishing and coordinating policies of a-related entities that are part of the health care system will provide management services to a and related entities that are part of the health care system will assist in strategic planning for the health care system and generally will ensure that all activities of a-related entities are in furtherance of a's exempt purposes furthermore as a result of the close relationship between a and h a will continue to have a significant voice in the financial policies of b and c i conclusions as a result of the activities of a and of related entities that are part of h which will be solely in furtherance of a's exempt health care purposes the proposed reorganization and any related transfers of assets funds services and or personnel will not i adversely affect the tax exempt status of a b or c ii adversely affect the nonprivate foundation status of a borc or iii cause any of these entities to recognize unrelated_business_taxable_income _ -t- therefore we rule as follows ruling sec_1 the reorganization and the resulting corporate structure will not result in the revocation of or otherwise adversely affect the continued status of aas an organization described in sec_501 of the code nor will it adversely affect the status of b or c as organizations described in sec_501 the reorganization and resulting corporate structure will not cause a to lose its nonprivate foundation status under sec_509 and sec_170 of the code nor will it cause b or c to lose their nonprivate foundation status under sec_509 of the code any transfers of funds assets services and or personnel in connection with the reorganization will not jeopardize the continued status as an organization described in sec_501 of the code as applicable of the organization providing such funds assets services and or personnel any transfers of funds assets services and or personnel will not adversely affect the continued nonprivate foundation status of a b or c under sec_509 or sec_509 of the code as applicable any payments for transfers of funds assets services and or personnel in connection with the reorganization will not generate unrelated_business_taxable_income under sec_511 through of the code this ruling is directed only to the organization that requested it sec_6110 of the code provides that it may not be used or cited as precedent the rulings in this letter only apply the specifically indicated sections of the code and regulations to the facts that you have represented in this letter we do not rule on the applicability of any other sections of the code and regulations to your case a because this letter could help resolve any future questions about your income_tax responsibility please keep a copy of this ruling in your permanent records a copy of this letter will be furnished to your exempt_organizations area manager 2g if you have any questions about this rulin telephone number are shown in the heading of t g please contact the person whose name and his letter sincerely yours signed marvin friedlander marvin friedlander manager exempt_organizations technical group t m e 2k


department of the treasury internal_revenue_service washington d c date cc dom fs p si uilc number release date internal_revenue_service national_office field_service_advice memorandum for assistant regional_counsel tax litigation from subject assistant chief_counsel field service cc dom fs this field_service_advice responds to your memorandum dated field_service_advice is not binding on examination or appeals and is not a final case determination this document is not to be cited as precedent legend donor partnership dollar_figurea dollar_figureb date x date y issue whether the provisions of the partnership_agreement preventing liquidation constitute an applicable_restriction within the meaning of sec_2704 conclusion the provisions of the partnership_agreement preventing liquidation constitute an applicable_restriction within the meaning of sec_2704 which may be disregarded in valuing the transferred partnership interests to the extent that such provisions are more restrictive than the limitations that would apply under state law generally applicable to partnerships in the absence of such provisions facts on date x donor and his spouse formed a limited_partnership donor transferred dollar_figurea in cash and publicly_traded_securities in exchange for an approximate percent interest general_partnership interest and a percent limited_partnership_interest donor’s spouse transferred dollar_figureb in exchange for a dollar_figure percent general_partnership interest the partnership_agreement provides that partnership will continue for years or until the general_partner and the holders of more than percent of the limited_partnership interests agree to terminate the partnership no partner may withdraw or reduce his capital_contribution until termination the agreement may be amended only with the consent of the general_partner and the holders of more than percent of the limited_partnership interests on date y donor gave his limited_partnership_interest in four equal shares to his three children and a_trust for his grandchildren in valuing the transfers for gift_tax purposes donor reduced the net asset value of the interests by percent to reflect the minority status and lack of marketability of the interests despite the fact that the underlying assets of the partnership consisted of readily marketable assets law and analysis sec_2501 imposes a tax on the transfer of property by gift sec_2511 provides that the tax shall apply whether the gift is direct or indirect and whether the property is real or personal tangible or intangible sec_2512 provides that the value of the transferred property at the date of the gift shall be considered the amount_of_the_gift sec_2704 of the code provides in part that in the case of a transfer of an interest in a partnership to a member_of_the_transferor's_family if the transferor and members of the transferor's family hold immediately before the transfer control of the entity then any applicable_restriction shall be disregarded in determining the value of the transferred interest sec_2704 of the code provides in part that the term applicable_restriction means any restriction a which effectively limits the ability of the partnership to liquidate and b with respect to which the transferor or any member of the transferor’s family either alone or collectively has the right after such transfer to remove in whole or in part the restriction the legislative_history of sec_2704 provides in part as follows under the conference agreement any restriction that effectively limits the ability of a corporation or partnership to liquidate is ignored in valuing a transfer among family members if the transferor and family members control the corporation or partnership and the restriction either lapses after the transfer or can be removed by the transferor or members of his family either alone or collectively example --mother and son are partners in a two- person partnership the partnership_agreement provides that the partnership cannot be terminated mother dies and leaves her partnership_interest to daughter as the sole partners daughter and son acting together could remove the restriction on partnership_termination under the conference agreement the value of mother’s partnership_interest in her estate is determined without regard to the restriction such value would be adjusted to reflect any appropriate fragmentation discount this rule does not apply to a commercially reasonable restriction which arises as part of a financing with an unrelated party or a restriction required under state or federal_law the provision also grants to the treasury secretary regulatory authority to disregard other restrictions which reduce the value of the transferred interest for transfer_tax purposes but which do not ultimately reduce the value of the interest to the transferee h_r conf_rep no 101st cong 2nd sess date sec_25_2704-2 provides in part that an applicable_restriction is a limitation on the ability to liquidate the entity in whole or in part that is more restrictive than the limitations that would apply under state law generally applicable to the entity in the absence of the restriction a restriction is an applicable_restriction only to the extent that the transferor or the transferor’s estate and any members of the transferor’s family can revoke the restriction immediately_after_the_transfer sec_25_2704-2 provides in part that if an applicable_restriction is disregarded the transferred interest is valued as if the restriction does not exist and as if the rights of the transferor are determined under state law that would apply but for the restrictions sec_25_2704-3 provides that sec_25_2704-2 applies to transfers occurring after date of property subject_to applicable restrictions created after date the missouri uniform limited_partnership law mo ann stat west as in effect on the dates of formation and gift sec a limited_partner may withdraw from a limited_partnership at the time or on the happening of events specified in writing in the partnership_agreement if the agreement does not specify in writing the time or the events upon the happening of which a limited_partner may withdraw or a definite time for the dissolution and winding up of the limited_partnership a limited_partner may withdraw upon not less than six months prior written notice to each general_partner at his address on the books of the limited_partnership sec except as otherwise provided in sections to upon withdrawal any withdrawing partner is entitled to receive any distribution he is entitled to receive under the partnership_agreement and if not otherwise provided in the agreement he is entitled to receive within a reasonable_time after withdrawal the fair value of his interest in the limited_partnership as of the date of withdrawal based upon his right to share in distributions from the partnership emphasis added as noted above under the partnership_agreement the partnership will terminate in years dissolution prior to the termination_date or amendment of the agreement requires the consent of the general_partner and the holders of more than percent of the limited_partnership interests under applicable state law however in the absence of the restrictions in the partnership_agreement a transferee could have liquidated the subject interests in six months notice and received the fair value of the interests the provisions of the partnership_agreement are more restrictive than state law and thus constitute an applicable_restriction within the meaning of sec_2704 see sec_25_2704-2 example illustrating that a restriction on a right to put preferred_stock to the corporation is a limitation on the ability to liquidate the entity in whole or in part and is disregarded in valuing the preferred_stock for transfer_tax purposes finally the requirements of sec_2704 of the code are satisfied that is the restriction could be removed after the transfer by donor and members of his family accordingly the provisions of the partnership_agreement preventing liquidation constitute an applicable_restriction within the meaning of sec_2704 which may be disregarded in valuing the transferred partnership interests to the extent that such provisions are more restrictive than the limitations that would apply under state law generally applicable to partnerships in the absence of such provisions case development hazards and other considerations by william c sabin jr senior technician reviewer passthroughs special industries branch field service division


internal_revenue_service department of the treasury washington dc person to contact telephone number refer reply to cc corp b02-plr-125930-00 date date number release date index number legend transferee merger sub parent transferor partnership partnership limited_liability_company exchange bank state x business a business b a b c d e plr-125930-00 f g date date dear this responds to a letter dated date requesting rulings as to the federal_income_tax consequences of a proposed transaction additional information was received in letters dated february march april may may may may may june and date the information submitted indicates that transferee is a state x corporation formed solely for the purpose of consummating the proposed transaction transferee uses the accrual_method of accounting and files its returns on a calendar_year basis transferee will have a shares of authorized stock of which b will be shares of preferred_stock c will be shares of class a common_stock and d will be shares of class b common_stock class a shares will have one vote per share and class b shares will have one-half vote per share class a stock will be listed on exchange merger sub a state x corporation was a wholly-owned subsidiary of transferee merger sub was organized by transferee solely for the purpose of consummating the transaction and conducted no business or operations except those necessary to facilitate the transaction parent is a publicly traded state x corporation that is the common parent of a consolidated_group parent has one class of common_stock and one class of preferred_stock parent uses the accrual_method of accounting and files its federal consolidated_income_tax_return on a calendar_year basis parent directly and indirectly through its subsidiaries engages in business a transferor is a state x limited_liability_company formed solely for the purpose of consummating the transaction transferor has elected to be treated as a partnership for federal_income_tax purposes transferor is an accrual_method calendar_year taxpayer prior to the proposed transaction the interests in partnership partnership and limited_liability_company were contributed to transferor by its partners members and shareholders after such contribution transferor owned directly or indirectly all of the interests in partnership partnership and limited_liability_company transferor will be engaged in business b through the continued operation of partnership partnership and limited_liability_company in order to accomplish what are represented to be valid business purposes the taxpayers have proposed and partially consummated the following transactions plr-125930-00 i ii iii transferee formed a wholly-owned transitory subsidiary merger sub solely for the purpose of effecting the transaction on date merger sub merged with and into parent pursuant to an agreement and plan of merger the merger with parent surviving parent’s shareholders exchanged their stock in parent for an equal amount of class a common_stock of transferee representing e of transferee’s voting common_stock the stock of transferee acquired upon its formation was redeemed at the time of the merger on date one business_day after the merger transferor contributed its interests in partnership partnership and limited_liability_company the property to transferee in exchange for transferee voting common_stock the contribution transferor received f of transferee’s voting common_stock and in accordance with a loan agreement between one of the partnerships and bank bank received g of transferee’s voting common_stock iv after consummation of the merger and contribution parent will merge with and into transferee the upstream_merger under state x law sec_3 of revproc_2000_3 2000_1_irb_103 provides that the internal_revenue_service will not rule on the qualification of a transaction as a reorganization under a a although revproc_2000_3 provides a general no- rule policy concerning sec_368 the service will rule on collateral issues when the consequences of qualification are not adequately addressed by a statute regulation decision of the supreme court tax_treaty revenue_ruling revenue_procedure notice or other authority published in the internal_revenue_bulletin the taxpayer indicates that there is no guidance as to whether a corporation transferring property via a merger under sec_368 by reason of sec_368 followed by an upstream_merger is a transferor within the provisions of sec_351 the taxpayer has made the following representations in connection with the merger and the upstream_merger a to the best of the knowledge and belief of parent and transferor and without regard to resolution of the requested rulings below the state law merger of merger sub with and into parent in exchange for stock of transferee the merger viewed independently of the proposed upstream_merger constitutes a reorganization under sec_368 by reason of sec_368 b to the best of the knowledge and belief of parent and transferor and without regard to resolution of the requested rulings the state law merger plr-125930-00 c d e f g of parent with and into transferee the upstream_merger viewed independently of the merger would qualify under sec_332 to the best of the knowledge and belief of parent and transferor and assuming a favorable resolution of the requested rulings if the merger had not occurred and parent had merged directly into transferee such merger would have qualified as reorganization under sec_368 the merger and the upstream_merger if treated as steps in an integrated_plan will except with respect to the subissues identified otherwise satisfy the requirements applicable to qualification as a reorganization such as business_purpose continuity of business_enterprise and continuity_of_proprietary_interest all other transactions undertaken contemporaneously with in anticipation of in conjunction with or in any way related to the merger the contribution and the upstream_merger have been fully disclosed transferee has no plan or intention to sell or otherwise dispose_of any of parent’s assets received in the proposed upstream_merger except for dispositions in the ordinary course of business or transfers described in sec_368 or the regulations thereunder following the transactions transferee will continue parent’s core historic_business or use a significant portion of its historic_business_assets in its business for this purpose transferee will be treated as conducting the business and holding the assets of related entities as described in sec_1_368-1 h the upstream_merger will occur within days of receipt of the requested rulings the following additional representations have been made in connection with the contribution i j no stock_or_securities will be issued for services rendered to or for the benefit of transferee in connection with the proposed transaction no stock_or_securities will be issued for indebtedness of transferee that is not evidenced by a security or for interest on indebtedness of transferee which accrued on or after the beginning of the holding_period of parent or transferor for the debt k all rights title and interests for each copyright in each medium of exploitation will be transferred to transferee plr-125930-00 l m n o neither parent nor transferor will retain any significant_power_right_or_continuing_interest within the meaning of sec_1253 of the code in any franchises trademarks or trade names being transferred the transfers are not the result of the solicitation by a promoter broker or investment house parent and transferor will not retain any rights in the property being transferred to transferee the value of the transferee stock to be received in exchange for accounts_receivable will be equal to the net value of the accounts transferred ie the face_amount of the accounts_receivable previously included in income less the amount of the reserve for bad_debts p with respect to the larger transaction shareholders of parent will receive in exchange for their stock of parent stock of transferee equal in the aggregate to a number of shares having a value as of the date of the exchange of at least of the value of all of the formerly outstanding_stock of parent as of the same date q r s t transferee has no plan or intention to redeem or acquire and to the best of its knowledge and belief no related_person of transferee has any plan or intention to acquire for consideration other than a proprietary interest in transferee shares of transferee’s stock transferred in the transaction any debt relating to the stock being transferred that is being assumed or to which such stock is subject was incurred to acquire such stock and was incurred when such stock was acquired and both parent and transferor are transferring all of the stock for which the acquisition_indebtedness being assumed or to which such stock is subject was incurred the adjusted_basis and the fair_market_value of the assets to be transferred by parent and transferor to transferee will in each instance be equal to or exceed the sum of the liabilities to be assumed by transferee plus any liabilities if any to which the transferred assets are subject the liabilities of parent and transferor to be assumed by transferee were incurred in the ordinary course of business and are associated with the assets to be transferred plr-125930-00 u v w x y there is no indebtedness between either parent or transferor and transferee and there will be no indebtedness created in favor of parent or transferor as a result of the transaction the transfers and exchanges occurred under a plan agreed upon before the transaction in which the rights of the parties were defined all exchanges occurred on approximately the same date with the contribution occurring one business_day after the merger pursuant to the same integrated transaction the upstream_merger will occur within days of receipt of the requested rulings there is no plan or intention on the part of transferee to redeem or otherwise reacquire any stock to be issued in the proposed transaction taking into account the transfer of transferee stock to bank any issuance of additional shares of transferee stock any issuance of stock for services the exercise of any transferee stock_rights warrants or subscriptions a public offering of transferee stock and the sale exchange transfer by gift or other_disposition of any of the stock of transferee to be received in the exchange parent and transferor will be in control of transferee within the meaning of sec_368 z parent and transferor will each receive stock securities or other_property of transferee approximately equal to the fair_market_value of the property transferred by it to transferee aa transferee will remain in existence and retain and use the property transferred to it in a trade_or_business bb there is no plan or intention by transferee to dispose_of the transferred property other than in the normal course of business operations cc transferee will pay or assume only those expenses_incurred by each party in connection with the transactions in accordance with the guidelines established in revrul_73_54 1973_1_cb_187 dd transferee will not be an investment_company within the meaning of sec_351 and sec_1_351-1 of the regulations ee neither parent nor transferor is under the jurisdiction of a court in a title_11_or_similar_case within the meaning of sec_368 and the common_stock received in the exchange will not be used to satisfy the indebtedness of such debtor plr-125930-00 ff gg transferee will not be a personal_service_corporation within the meaning of sec_269a of the code to the best of the knowledge and belief of transferor and parent and assuming the favorable resolution of the requested rulings the transfer by transferor to transferee together with the merger of parent with and into transferee is a transaction that will qualify under sec_351 sec_351 does not apply unless the transferor or transferors hold at least percent of the stock of the transferee corporation after the transfer in the present case after the transfer of property by transferor transferor will hold less than percent of the common_stock of transferee accordingly standing alone transferor’s transfer of assets would not qualify for non-recognition treatment under sec_351 if merger sub a transitory entity is disregarded in the reverse_triangular_merger parent through the merger and upstream_merger in substance has transferred property to transferee in exchange for transferee stock solely for purposes of determining whether the percent requirement has been met so as to qualify transferor for treatment under sec_351 parent will be considered a transferor as described in sec_351 and accordingly parent’s ownership of transferee common_stock will be included in the computation the combined ownership of transferor and parent of transferee so computed exceed sec_80 percent accordingly based solely on the information submitted and the representations set forth above and provided that i the merger the contribution and the upstream_merger are treated as steps in an integrated_plan pursuant to the step_transaction_doctrine and ii the merger and the upstream_merger otherwise qualify as statutory mergers under applicable state law but for the rulings below we hold as follows for federal_income_tax purposes the merger and the upstream_merger will be treated as if transferee directly acquired parent’s assets in exchange for transferee stock and transferee’s assumption of parent’s liabilities through a statutory merger of parent with and into transferee as that term is used in sec_368 see revrul_67_274 1967_2_cb_141 and revrul_72_405 c b the deemed transfer by parent of its assets to transferee in the statutory merger and the transfer by transferor_of_property to transferee in exchange for transferee stock will be considered an exchange for purposes of sec_351 of the code see revrul_76_123 1976_1_cb_95 and revrul_68_357 c b transferee will not be considered a continuation of parent see revrul_76_123 c b plr-125930-00 no gain_or_loss will be recognized by transferor upon the transfer of the property to transferee solely in exchange for stock of transferee and the assumption_of_liabilities sec_351 no gain_or_loss will be recognized by the transferee upon the receipt of the property from transferor solely in exchange for transferee stock sec_1032 the basis of the transferee stock to be received by transferor will be the same as the basis of the property exchanged therefor reduced by the liabilities assumed by transferee or to which such property was subject sec_358 and sec_358 the holding_period of the transferee stock to be received by transferor will include the period during which the property exchanged therefor was held provided such property was held as a capital_asset by transferor on the date of the exchange sec_1223 the basis of the property of transferor to be received by transferee will be the same as the basis of such property in the hands of transferor immediately prior to the exchange sec_362 the holding_period of the property of transferor to be received by transferee will include the period during which such property was held by transferor sec_1223 the rulings contained in this letter are based upon information and representations submitted by the taxpayer and accompanied by a penalty of perjury statement executed by an appropriate party while this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination although no ruling was requested as to the continuation of the parent group it appears from the information submitted that the transaction qualifies as a reverse_acquisition under sec_1_1502-75 and as a result the parent group is required to continue filing a consolidated_return except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter we express no opinion as to the treatment of the contribution of the interests in partnership partnership and limited_liability_company to transferor by its partners members and shareholders as described above further we express no opinion as to whether or not the merger qualifies under sec_368 by reason of sec_368 whether the upstream_merger qualifies as a statutory merger whether viewed independently of the merger the upstream plr-125930-00 merger would have qualified under sec_332 or whether the step_transaction_doctrine applies to these transactions this ruling is directed only to the taxpayer s requesting it sec_6110 of the code provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to the taxpayer a copy of this letter must be attached to any income_tax return to which it is relevant sincerely associate chief_counsel corporate by edward s cohen chief branch


t c memo united_states tax_court brendt l smith petitioner v commissioner of internal revenue respondent docket no filed date brendt l smith pro_se stewart todd hittinger for respondent memorandum opinion gale judge on date respondent issued a notice_of_deficiency with respect to petitioner’s federal income taxes for and determining deficiencies of dollar_figure and dollar_figure respectively and fraud penalties under sec_6663 a of unless otherwise noted all section references are to the internal_revenue_code in effect during the taxable years at continued dollar_figure and dollar_figure respectively we granted respondent’s motion to dismiss for lack of prosecution as to the deficiencies after petitioner failed to appear at trial or respond to our order requesting a response to respondent’s motion to dismiss the issue for decision is whether petitioner is liable for fraud penalties under sec_6663 for the years at issue we also consider whether we should impose a penalty under sec_6673 on date petitioner filed an imperfect petition with this court and requested a copy of the court’s rules for filing a formal petition over months later after two extensions of time to file petitioner filed an amended petition on date in conformance with this court’s rules on date petitioner was served with a notice setting his case for trial on date and stating your failure to appear may result in dismissal of the case and entry of decision against you included in the notice was the court’s standing_pretrial_order which states continuances will be granted only in exceptional circumstances the notice further called the parties’ attention to the court’s requirements for continued issue and all rule references are to the tax_court rules_of_practice and procedure at the time of the filing petitioner resided in winona lake indiana stipulation and advised that the parties should establish contact for this purpose in an effort to prepare this case for trial respondent made several attempts through letters and telephone calls to arrange to meet with petitioner to prepare a stipulation of facts and otherwise define the issues petitioner spoke to respondent’s counsel once before trial but did not exchange documents or endeavor to prepare a stipulation of facts on date petitioner requested a continuance by means of a letter sent to the clerk of the court but at the address of the federal building and courthouse in indianapolis indiana in the letter petitioner made reference to his trial date of date and advised at this time i am asking for a continuance due to a family medical problem pneumonia my mother has been sick for awhile and family physician thought it would sic a good thing for her to visit relatives in florida she has been their sic for about two months and has been doing well i will be flying down to drive her home and will not be able to appear on date petitioner’s letter was returned to him by the clerk of the u s district_court for the southern district of indiana who indicated that petitioner had sent his correspondence to the wrong court on date this court received a letter dated date from petitioner in which he requested a continuance and attached a copy of his previous letter we filed this submission as a motion to continue and set a hearing to consider it on date petitioner did not appear for the hearing on his motion to continue or the scheduled trial session respondent filed a motion to dismiss for lack of prosecution and requested a trial to present testimony and other evidence in support of his determination of fraud we denied petitioner’s motion to continue held a trial to receive respondent’s evidence and ordered petitioner to file a response to respondent’s motion to dismiss within days petitioner did not file a response to respondent’s motion to dismiss by order dated date we granted respondent’s motion to dismiss for lack of prosecution as to the deficiencie sec_3 and scheduled the filing of seriatim briefs on the issue of fraud on the day before his brief was due petitioner mailed a letter to the court stating i received a letter denying my in the amended petition petitioner averred that the periods of limitation for assessing tax for his and taxable years had expired before the date issuance of the notice_of_deficiency for those years however the evidence adduced by respondent at trial includes form sec_872 consent to extend the time to assess tax executed by petitioner that extended the period for assessment for and until date request for a continuance the day of trial denying the fraud allegations and requesting a trial petitioner’s failure to appear we decline to grant petitioner’s request for additional trial proceedings in this case because on the basis of a review of the entire record we are persuaded that he had no adequate justification for failing to appear at the initial trial and further that he has engaged in a deliberate effort to delay a resolution of this case after receiving the notice setting this case for trial petitioner disregarded numerous attempts by respondent to discuss stipulations and otherwise prepare the case for trial instead days before the scheduled trial date petitioner sent a letter albeit to the wrong address requesting a continuance on the basis of petitioner’s subsequent statements we are persuaded that petitioner timed the submission of his request as late as possible without triggering the more stringent requirements of rule for continuances that are sought within petitioner’s submission was filed by the court as his answering brief in his response mailed the day before his answering brief was due petitioner complained that his request for a continuance had been denied notwithstanding that his request had been made days prior to trial the 30-day period preceding trial moreover petitioner’s original request for a continuance demonstrates that there were no family or medical exigencies that precluded his appearance at the trial scheduled for date in his request petitioner advised that his mother had been visiting relatives in florida for months on account of her doctor’s advice regarding pneumonia according to petitioner she was doing well but he needed to fly to florida to drive her back to indiana at the time his trial was scheduled we were unpersuaded that these circumstances required petitioner to miss a trial date scheduled months in advance accordingly we set the matter for hearing but petitioner failed to appear having been advised in the notice setting the case for trial that his failure to appear might result in dismissal of the case and entry of decision against him petitioner voluntarily forfeited his right to present evidence at a trial by failing to appear without having been excused moreover petitioner’s failure to cooperate in preparing the case for trial and hi sec_11th-hour request for a continuance conform with a pattern of dilatoriness in this proceeding his petition was not perfected until more than months after its rule provides that a motion for continuance that is filed days or less before a scheduled trial ordinarily will be deemed dilatory and will be denied unless the ground therefor arose during the 30-day period or there was good reason for not making the motion sooner initial filing after petitioner failed to appear for trial and respondent filed a motion to dismiss for lack of prosecution we allowed petitioner days after the scheduled trial date to respond to respondent’s motion petitioner failed to do so instead petitioner waited until after we granted respondent’s motion to dismiss with respect to the deficiencies and as with his request for continuance on the day before his deadline for filing a brief regarding the issue of fraud he submitted a letter denying fraud and requesting that a trial date be set in these circumstances we conclude that petitioner’s belated request for a trial is little more than a stalling tactic designed to delay a disposition of this case rule a provides that where there is an unexcused absence of a party when a case is called for trial the case may be dismissed for failure properly to prosecute or the trial may proceed and the case be regarded as submitted on the part of the absent party or parties dismissal of a case for failure to properly prosecute is a sanction that rests with the discretion of the court see rule b 99_tc_533 87_tc_794 see also 887_f2d_783 7th cir we note that a response to the motion to dismiss would have been an opportunity for petitioner to provide any further explanation that he wished to make of his failure to appear for trial however petitioner ignored our order to respond discussing standard for dismissal under rule b of the federal rules of civil procedure the model for rule b accordingly for the reasons discussed above we granted respondent’s motion to dismiss for lack of prosecution and sustained respondent’s determination as to the deficiencies with respect to the fraud penalties we exercised our discretion under rule a to conduct a trial to afford respondent the opportunity to present evidence to meet his burden_of_proof see 82_tc_413 affd without published opinion 772_f2d_910 9th cir 72_tc_126 fraud penalties in the case of a fraud_penalty where the taxpayer is absent from trial without excuse the commissioner may meet his burden of proving fraud by means of pleadings which set forth sufficient facts to support a finding of fraud 91_tc_1049 affd 926_f2d_1470 6th cir respondent’s pleadings in his answer set forth the following facts which are deemed admitted during and petitioner owned and operated a construction business an antiques business and commercial rental property respondent used the source_and_application_of_funds_method to reconstruct petitioner’s income respondent’s analysis showed that the excess of petitioner’s application of funds over his known sources of income in was dollar_figure as compared to reported gross_receipts of dollar_figure respondent’s analysis showed that the excess of petitioner’s application of funds over his known sources of income in was dollar_figure as compared to reported gross_receipts of dollar_figure in addition respondent adduced evidence at trial that establishes the following an agent of respondent conducted an examination of petitioner’s and taxable years at the time of the examination petitioner had conducted a construction business for at least years which served as his primary source_of_income while petitioner was able to substantiate some expenses of his income-producing activities in and he failed to maintain or submit for examination by respondent books and the source_and_application_of_funds_method of proof has been accepted by this court as an appropriate method for the commissioner to reconstruct the income of a taxpayer whose records are inadequate see eg 85_tc_927 the court_of_appeals for the seventh circuit to which an appeal in this case lies barring stipulation to the contrary has likewise upheld the cash_expenditures_method a reconstruction method very similar to the source_and_application_of_funds_method see eg 832_f2d_1465 7th cir cf hall v commissioner tcmemo_1996_27 discussing distinction between cash expenditures and source and application of funds methods records to account for the income from those activities in those years petitioner admitted receiving dollar_figure from johnson controls inc in as well as a form 1099-misc miscellaneous income reporting that amount from that source petitioner reported only dollar_figure of gross_receipts in his schedules c profit or loss from business for his construction business and dollar_figure for his antiques business in petitioner offered three different explanations to respondent’s examiner concerning why he did not report the dollar_figure shown on the foregoing form 1099-misc i that he had not received the form 1099-misc in time to include the amount thereon in his return ii that the amounts reported on the schedule c for his construction business were net amounts ie receipts less expenses and iii that when he thought about his truck payment he decided to keep it in response to the examining agent’s inquiries seeking to identify nontaxable sources of income during and petitioner claimed he received a dollar_figure gift from his mother but did not substantiate it petitioner also claimed that during and he collected rent receipts of approximately dollar_figure annually on his mother’s behalf from two rental properties that we note in this regard that petitioner’s return was filed on date she owned and deposited them into his checking account before remitting them to his mother when the examining agent was unable to trace in petitioner’s bank records the rent payments allegedly collected for and paid over to his mother petitioner then explained that the remittances to his mother were not traceable because he occasionally used the rent receipts for repairs to the properties and occasionally kept the payments when he was short of cash advising his mother that the tenants were late in paying and then remitting the payments to her at a later time to establish fraud the commissioner must show by clear_and_convincing evidence that there is an underpayment and that a portion of the underpayment is attributable to fraud see sec_7454 rule b 92_tc_661 if the commissioner establishes that any portion of an underpayment is attributable to fraud the entire underpayment shall be treated as attributable to fraud except to the extent the taxpayer establishes otherwise see sec_6663 marretta v commissioner tcmemo_2004_128 peyton v commissioner tcmemo_2003_146 fraud is established by proving that the taxpayer intended to evade tax believed to be owing by conduct intended to conceal mislead or otherwise prevent the collection of such tax 91_tc_874 the existence of fraud is a question of fact established by consideration of the entire record petzoldt v commissioner supra pincite 69_tc_391 direct proof of fraud is seldom available therefore fraud may be proved by circumstantial evidence and reasonable inferences from the facts petzoldt v commissioner supra 80_tc_1111 the courts have recognized numerous indicia or badges_of_fraud including the following a pattern of underreporting income maintaining inadequate records giving implausible or inconsistent explanations of behavior and establishing a pattern of inaction and delay during the pretrial and trial proceedings 317_us_492 39_f3d_658 6th cir affg and remanding on other grounds tcmemo_1992_616 796_f2d_303 9th cir affg tcmemo_1984_601 rice v commissioner tcmemo_2003_208 mccue v commissioner tcmemo_1983_580 although no single factor is necessarily sufficient to establish fraud the existence of several indicia constitutes persuasive circumstantial evidence of fraud petzoldt v commissioner supra pincite respondent reconstructed petitioner’s income in the years at issue by use of the source_and_application_of_funds_method respondent’s analysis indicates that petitioner substantially underreported income in both years namely dollar_figure in and dollar_figure in accordingly respondent has met his burden of showing by clear_and_convincing evidence that petitioner had underpayments of tax in and on the question of whether these underpayments are attributable to fraud respondent has demonstrated several badges_of_fraud as follows petitioner failed to report income in both years indicating a pattern of underreporting the unreported amounts were substantial in relation to petitioner’s reported gross_receipts namely dollar_figure of unreported income versus reported gross_receipts of dollar_figure in and dollar_figure of unreported income versus reported gross_receipts of dollar_figure in the magnitude of the unreported amounts makes it virtually impossible that they could have been due to mere mistake or inadvertence petitioner’s records were clearly inadequate while he was able to substantiate certain expenses petitioner did not maintain or produce regular books_or_records from which the income from his schedule c businesses could be ascertained petitioner gave numerous implausible explanations for his failure to report income he offered three inconsistent explanations for his failure to report the dollar_figure in income that he received from johnson controls inc in moreover his claim that he did not receive the form 1099-misc from johnson controls inc in in time to include the amount on his return is implausible given that the return was not filed until date and johnson controls inc had a statutory obligation to mail the form to him by the end of the preceding januarydollar_figure petitioner’s attempts to identify nontaxable sources of income are similarly implausible his claim that his mother gave him dollar_figure was not substantiated his claim that he deposited rent receipts belonging to his mother into his own checking account and then paid over the receipts to his mother was later qualified when the examining agent was unable to trace these amounts through his account in the qualified version petitioner claimed that the rent receipts were sometimes expended on repairs and sometimes kept by him for a period of time before being repaid to his mother even if the claims regarding the rent receipts were accepted they would at most account for dollar_figure of nontaxable source income annually far less than the amounts petitioner failed to report in each year in reaching our conclusion that petitioner’s various attempts to explain to the examining agent his failure to report income constitute evidence of fraud we also take note of the information returns must be delivered to the person with respect to whom the information is required by jan of the year following the calendar_year in which payment of the reported income is made see sec_6041 fact that when faced with the prospect of putting these various explanations through the crucible of sworn testimony and cross- examination petitioner opted to avoid trial finally petitioner’s pattern of inaction and delay in this proceeding is evidence of fraud he took months to perfect his petition notwithstanding multiple attempts by respondent’s counsel petitioner made no effort to complete the stipulation process or otherwise prepare the case for trial he waited until just before the 30-day window preceding trial to seek a continuance failed to appear for trial ignored our order to respond to respondent’s motion to dismiss and then on the last day for filing a brief regarding the fraud issue insisted on a trial taken together the actions evince an effort to avoid any final reckoning on his tax_liabilities and are evidence of fraud accordingly on the basis of the entire record we find that respondent has shown clearly and convincingly that petitioner’s underpayments of tax in and were due to fraud the entirety of petitioner’s actions persuade us that he was aware that taxes were owed on the income that was not reported as noted the magnitude of the unreported amounts rebuts any realistic possibility that the omissions were due to inadvertence or error as do petitioner’s various inconsistent attempts to explain the discrepancies those explanations were an effort to conceal and mislead finally petitioner has not shown that any portion of the underpayment in either year was not attributable to fraud therefore we will sustain in full respondent’s determinations of fraud for both years sec_6673 penalty we note that sec_6673 authorizes the court to require a taxpayer who has instituted or maintained a proceeding primarily for delay or whose position is frivolous or groundless to pay a penalty to the united_states see 119_tc_276 102_tc_596 95_tc_624 affd without published opinion 956_f2d_1168 9th cir the court may consider the imposition of such a penalty sua sponte see eg jones v commissioner tcmemo_2003_131 hawes v commissioner tcmemo_1999_152 bierhaalder v commissioner tcmemo_1993_164 affd without published opinion 16_f3d_415 10th cir as our previous discussion indicates petitioner’s failure to engage in any meaningful pretrial preparation his failure to appear for trial and his other efforts to protract this proceeding are evidence that he instituted and maintained it primarily for delay respondent has not sought a penalty under sec_6673 however and we will not impose one in these circumstances petitioner is nonetheless cautioned that should he engage in similar actions in any future proceedings in this court penalties under sec_6673 may be imposed to reflect the foregoing decision will be entered for respondent


department of the treasury washington dc person to contact telephone number refer reply to cc intl b1 plr-118621-99 date date internal_revenue_service number release date index no a date b country c year d dear this is in response to a letter from your power_of_attorney dated date requesting a ruling under sec_877 of the internal_revenue_code_of_1986 code that a’s loss of u s citizenship did not have for one of its principal purposes the avoidance of u s taxes under subtitle a or subtitle b of the code the information submitted for consideration is substantially as set forth below the ruling contained in this letter is based upon information and representations submitted by the taxpayer and accompanied by penalty of perjury statements executed by an appropriate party while this office has not verified any of the material submitted in support of the request for rulings it is subject_to verification on examination a was born on date b in country c and became a u s citizen at birth on the basis of his father’s u s citizenship a’s mother was born in country c a became a citizen of country c in year d a plans to renounce his united_states citizenship as soon as or shortly after the issuance of this ruling on the date of a's expatriation his net_worth will exceed the net_worth required under sec_877 sec_877 generally provides that a citizen who loses u s citizenship or a u s long-term_resident who ceases to be taxed as a lawful permanent resident individuals who expatriate within the 10-year period immediately preceding the close of the taxable_year will be taxed under sec_877 and the special rules of sec_877 for such taxable_year unless such loss did not have for one of its principal purposes the avoidance of u s taxes sec_2107 and sec_2501 provide special estate and gift_tax regimes respectively for individuals who expatriate with a principal purpose to avoid u s taxes plr-118621-99 a former citizen or former long term-resident will be treated as having expatriated with a principal purpose to avoid u s taxes for purposes of sec_877 sec_2107 and sec_2501 a if the individual’s average income_tax_liability or the individual’s net_worth on the date of expatriation exceed certain thresholds see sec_877 sec_2107 and sec_2501 a b a former u s citizen or former long term-resident whose net_worth or average tax_liability exceeds these thresholds however will not be presumed to have a principal purpose of tax_avoidance if that former citizen is described within certain statutory categories and submits a request for a ruling within one year of the date of loss of u s citizenship for the secretary’s determination as to whether such loss had for one of its principal purposes the avoidance of u s taxes see sec_877 sec_2107 and sec_2501 under notice_98_34 1998_27_irb_40 an eligible former citizen will not be presumed to have a principal purpose of tax_avoidance if that former citizen submits a complete and good_faith request for a ruling as to whether such loss had for one of its principal purposes the avoidance of u s taxes notice_98_34 requires that certain information be submitted with a request for a ruling that an individual’s expatriation did not have for one of its principal purposes the avoidance of u s taxes a is eligible to request a ruling under sec_877 because a became citizen of the country in which his mother was born see sec_877 a submitted all the information required by notice_98_34 including any additional information requested by the service after review of the submission accordingly based on the facts submitted and the representations made we conclude that a has made a complete and good_faith submission in accordance with sec_877 and notice_98_34 and therefore a will not presumed to have expatriated with a principal purposes of tax_avoidance however because the information submitted does not clearly establish the existence or lack of a principal purpose to avoid taxes under subtitle a or b of the code no opinion is expressed as to whether a’s expatriation had for one of its principal purposes the avoidance of such taxes while this ruling rebuts the presumption of tax_avoidance under sec_877 it is not conclusive as to whether a subsequently may be found to have a principal purpose of tax_avoidance under sec_877 sec_2107 and sec_2501 based on all the facts and circumstances see sec_877 except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter in addition no opinion is expressed as to a’s u s tax_liability for taxable periods prior to his loss of u s citizenship or for taxable periods after his loss of u s citizenship under sections of the code other than sec_877 sec_2107 and sec_2501 plr-118621-99 except as expressly provided herein no opinion is expressed or implied concerning the tax consequences of any aspect of any transaction or item discussed or referenced in this letter in addition no opinion is expressed as to a’s u s tax_liability for taxable periods prior to his loss of u s citizenship or for taxable periods after his loss of u s citizenship under sections of the code other than sec_877 sec_2107 and sec_2501 a copy of this letter must be attached to a’s u s income_tax return for the year in which a obtained the ruling whether or not a is otherwise required to file a return this ruling is directed only to the taxpayer requesting it sec_6110 of the code provides that it may not be used or cited as precedent in accordance with the power_of_attorney on file with this office a copy of this letter is being sent to your power_of_attorney sincerely yours allen goldstein reviewer office of the associate chief_counsel international cc


____________________________________________________________________________________ number release date cc ct ct-125471-01 uiln date criminal tax bulletin index department of the treasury internal_revenue_service office_of_chief_counsel criminal tax_division date this bulletin is for informational purposes it is not a directive criminal tax bulletin index this is a year end summary of criminal tax bulletin items for calendar years and if you’re like us you tend to remember that an article appeared in one of the issues of the bulletin but you cannot remember which one thus this three-year alphabetical index which is arranged by subject matter and issues contains cases that appeared in the past three years’ bulletins the index will be updated each year so that at any given time you will have the three most recent years i statutory provisions case name citation issue bulletin brooks 174_f3d_950 8th cir d’agostino 145_f3d_69 2d cir sec_7201 good_faith defense shareholder diversion of corporate funds of corporation having no earnings_and_profits mounkes 204_f3d_1024 10th cir cash on hand must be established with reasonable certainty silkman 156_f3d_833 8th cir tax_evasion - jury must decide all elements wright 211_f3d_898 5th cir tax_deficiency page case name citation issues bulletin does not include interest and penalties anglin 999_fsupp_1378 d haw thayer 201_f3d_214 3d cir mccaffrey 181_f3d_854 7th cir sec_7202 statute_of_limitations employee withholding sec_7203 willfulne sec_26 u s c sec_7206 and bilbrey a f t r 2d ria 6th cir unpublished willfulness bok 156_f3d_157 2d cir cooper 170_f3d_980 7th cir in re larry howard minkoff collier bankr cas 2d mb bankr d kan date ladum 141_f3d_1328 9th cir mckee 192_f3d_535 6th cir neder 136_f3d_1459 11th cir 527_us_1 peters 153_f3d_445 7th cir pirro 212_f3d_86 2d cir scarberry no u s app lexis 10th cir date unpublished earnings_and_profits sanctions for frivolous appeal no estoppel from tax loss stipulated in plea false schedule c is within the meaning of sec_7206 clear indication of fraud v first indication of fraud eleventh circuit’s application of gaudin failure to submit issue of materiality to jury held harmless error clear indication of fraud and constructive dividends failure to report ownership_interest in s_corporation insufficient for criminal charge filing_status is material case name citation issues bulletin page scholl 166_f3d_964 9th cir shetty 130_f3d_1324 9th cir bowman 173_f3d_595 6th cir kassouf 144_f3d_952 6th cir materiality - uchimura narrowed net_worth analysi sec_26 u s c sec_7212 omnibus clause - kassouf limited sec_7212 omnibus clause requires a pending irs proceeding or investigation of which the defendant is aware kelly 147_f3d_172 2d cir caceres issue willfulness and statute_of_limitations in regard to u s c sec_7212 jose 131_f3d_1325 9th cir burdix-dana 149_f3d_741 7th cir cordero no u s app lexi sec_810 2d cir date unpublished sec_7609 summons enforcement u s c statute_of_limitations obviousness not a defense for materiality foster 229_f3d_1196 5th cir omission of jury instruction on materiality is harmless error franklin a f t r 2d ria 6th cir unpublished nash 175_f3d_429 6th cir false refund claims materiality not an element of u s c sec_371 adkinson 158_f3d_1147 11th cir concealment of bank fraud proceeds is insufficient evidence of klein_conspiracy 112_tc_304 beaty 147_f3d_522 6th cir espionage income double_jeopardy page case name citation issues bulletin statute_of_limitations ely 140_f3d_1089 5th cir u s c sec_1001 mandanici 205_f3d_519 2d cir gaudin does not apply retroactively on collateral review ables 167_f3d_1021 6th cir akintobi 159_f3d_401 9th cir ben zvi 168_f3d_49 2d cir butler 211_f3d_826 4th cir cabrales 524_us_1 cefaratti 221_f3d_502 3d cir christo 129_f3d_578 11th cir money laundering currency crimes transaction affecting interstate commerce valueless checks obtained by fraud are proceeds no sua conviction required bankruptcy fraud is complete at point of concealment money laundering venue options depositing checks from fraud scheme constitutes money laundering check kiting scheme not money laundering 222_f3d_1315 11th cir bank’s disclosure protected by immunity provision of annunzio-whylie act davis 226_f3d_346 5th cir ladum 141_f3d_1328 9th cir commingled funds bankruptcy fraud as an sua majors 196_f3d_1206 11th cir transfer of proceeds to third party constitutes concealment mankarious 151_f3d_694 7th cir money laundering offense completed upon receipt of predicate offense proceeds even though acts comprising predicate offense not yet completed page case name citation issues bulletin morelli 169_f3d_798 3d cir taxes embezzled - proceeds of wire fraud unanimity of intent navarro 145_f3d_580 3d cir norman 143_f3d_375 8th cir prince 214_f3d_740 6th cir reed 163_f3d_984 6th cir shoff 151_f3d_889 8th cir stephenson 183_f3d_110 2d cir trapilo 130_f3d_547 2d cir trost 152_f3d_715 7th cir zanghi 189_f3d_71 1st cir meaning of concealment in u s c a b funds are proceeds of wire fraud at moment victims wire money to third parties intent to commit money laundering concealment spending of sua proceeds defrauding foreign government of taxes may violate united_states wire fraud statute proceeds involved in the offense intent to evade taxes ii constitutional issues fourth_amendment 129_f3d_505 9th cir contract with media for film footage of search warrant bond 120_sct_1462 carey 172_f3d_1268 10th cir castro 129_f3d_752 5th cir physical manipulation of detainee’s baggage constitutes illegal search search of computer records inventory search cannot be the basis for a pretextual search for narcotics chaar 137_f3d_359 6th cir telephonic page case name citation issues bulletin search warrant car renter’s reasonable expectation of privacy search of attorney’s person answering phone without warrant miranda governs admissibility of custodial interrogation statements not u s c sec_3501 particularity requirement and good_faith exception extended detention for canine sniff violates fourth_amendment murder scene exception to warrant requirement anonymous tip alone insufficient to justify stop no search warrant required to seize automobile for civil drug forfeiture permeated with fraud inevitable discovery cooper 133_f3d_1394 11th cir 526_us_286 de la paz 43_fsupp2d_370 s d n y date dickerson 120_sct_2326 dickerson 166_f3d_667 4th cir dortch 199_f3d_193 5th cir flippo v west virginia 120_sct_7 florida v j l 120_sct_1375 526_us_559 ford 184_f3d_566 6th cir goldsmith 183_f3d_659 7th cir page case name citation issues bulletin roadblocks to catch drug offenders jurisdiction - execution of search warrant bus company consent renders search of bus constitutional anticipatory search warrants must identify triggering event pretextual motor_vehicle stop unprovoked flight from police in high crime area justifies stop permeated by fraud narcotics profile search incident to citation thermal scan of home green 178_f3d_1099 10th cir hernandez- zuniga 215_f3d_483 5th cir hotal 143_f3d_1223 9th cir huguenin 154_f3d_547 6th cir illinois v wardlow 120_sct_673 in re grand jury investigation concerning 130_f3d_853 9th cir johnson 171_f3d_601 8th cir 525_us_113 kyllo 190_f3d_1041 9th cir madoch 149_f3d_596 7th cir page case name citation issues bulletin miranda warnings lack of exigency automobile exception application of brady standards to search warrant affidavit was clearly erroneous tracking device on suspect’s vehicle warrantless search of garbage cans warrantless search of employee computer search warrant’s lack of particularity warrant for computer equipment media presence-execution of search warrant search of passenger's belongings in a car fifth_amendment 527_us_465 134_f3d_809 6th cir mciver 186_f3d_1119 9th cir redmon 117_f3d_1036 7th cir vacated reh’g en_banc granted 138_f3d_1109 7th cir simons 206_f3d_392 4th cir stefonek 179_f3d_1030 7th cir upham 168_f3d_532 1st cir 526_us_603 526_us_295 case name citation issues bulletin page blackheath road 201_f3d_98 2d cir balsys 119_f3d_122 2d cir rev’d 524_us_666 168_f3d_790 5th cir harrison 213_f3d_1206 9th cir hubbell 120_sct_2037 hubbell 167_f3d_552 d c cir 522_us_93 170_f3d_1232 9th cir 526_us_314 no right to counsel in civil forfeiture fifth_amendment privilege_against compelled self-incrimination is not available when claiming fear of foreign prosecution double_jeopardy pre indictment investigation and right to counsel derivative use of evidence precluded after grant of immunity self incrimination and immunity double_jeopardy - halper methodology disfavored double_jeopardy excessive fine sec_5th amendment privilege at sentencing pi 174_f3d_745 6th cir superceding indictment not barred by double_jeopardy or res_judicata albanese 195_f3d_389 8th cir doherty 233_f3d_1275 11th cir gomez 191_f3d_1214 10th cir 523_us_185 hayes 190_f3d_939 9th cir 527_us_116 logan 210_f3d_820 8th cir sixth amendment prosecutorial misconduct bruton and right to cross examination absent codefedants’ custodial statements redacted confession fails to satisfy confrontation clause sixth amendment and grand jury target sec_12 nontestifying accomplice’s inculpating statements bruton and redacted confession case name citation issues bulletin page plitman 195_f3d_59 2d cir register 182_f3d_820 11th cir 522_us_398 234_f3d_281 5th cir 207_f3d_508 8th cir knottnerus 139_f3d_558 7th cir ackert 169_f3d_136 2d cir adlman 134_f3d_1194 2d cir dakota f 3d 6th cir frederick 182_f3d_496 7th cir 183_f3d_71 1st cir in re grand jury subpoena 204_f3d_516 4th cir 223_f3d_213 3d cir 223_f3d_775 d c cir in re three grand jury subpoenas united_states v john doe john doe john doe 185_f3d_326 2d cir smith 135_f3d_963 5th cir waiver of client’s right to confrontation disqualification of chosen counsel iii defenses exculpatory_no_doctrine agents acting in good_faith not liable for disclosure government has burden to show good_faith for disclosure defense voluntary disclosure iv privileges attorney-client_privilege work product doctrine no attorney-client_privilege between tribal counsel and tribal member attorney-client work product privileges inapplicable to accountant psychotherapist-patient privilege no attorney-client_privilege if client divulged confidential communication crime fraud exception crime fraud exception acts of production privilege no media work product privilege page case name citation issues bulletin 524_us_399 attorney-client_privilege survives the client v federal rules of evidence 112_tc_304 bray 139_f3d_1104 6th cir discovery of crl use of summaries at trial attorney’s admissions to special_agent bridges 46_fsupp2d_462 e d va burch 156_f3d_1315 d c cir waiver of federal rules as part of plea agreement chmielewski 218_f3d_840 8th cir cordoba 194_f3d_1053 9th cir dickerson 166_f3d_667 4th cir unfiled tax returns admissible for willfulness unstipulated polygraph evidence properly excluded u s c sec_3501 - admissibility of confessions gallardo-mendez 150_f3d_1240 10th cir guilty pleas cannot be used as collateral_estoppel in subsequent criminal case 215_f3d_1083 10th cir hankey 203_f3d_1160 9th cir 526_us_137 daubert analysis required for admissibility of expert scientific evidence expert testimony admissible to show bias expert testimony marsh 144_f3d_1229 9th cir hearsay evidence admitted without a proper limiting instruction mclaughlin no 95-cr-113 u s dist lexis e d pa date witness affiliated with adverse_party moses 148_f3d_277 3d cir hearsay exception case name citation issues bulletin page noah 130_f3d_490 1st cir queen 132_f3d_991 4th cir smith 145_f3d_458 1st cir 194_f3d_547 4th cir 527_us_263 federal rule_of evidence b admissibility of prior bad acts acquittal instruction is not required when evidence of acquitted conduct is introduced suppression of brady material non-disclosure of impeachment evidence sudikoff 36_fsupp2d_1196 c d cal discovery under brady giglio thomas 134_f3d_975 9th cir entrapment defense permits introduction of defendant’s prior criminal record vi federal rules of criminal procedure bridges 46_fsupp2d_462 e d va attorney’s admissions to special_agent fed r crim pr new rule symington 195_f3d_1080 9th cir dismissal of juror during deliberations vii forfeiture dollar_figure 129_f3d_486 9th cir government’s burden_of_proof for allocation held constitutional dollar_figure seized from u s bancorp 139_f3d_729 9th cir interest rate on seized property dollar_figure u s currency 164_f3d_462 9th cir double_jeopardy and excessive fines dollar_figure in u s currency 25_fsupp2d_140 w d n y knowledge requirement dollar_figure in u s currency hurst 152_f3d_491 6th cir interest on seized funds dollar_figure formerly on deposit in account no u s dist lexis s d n y date unpublished identity of victim in foreign tax_evasion irrelevant to prove violation case name citation issues bulletin page peyton road 162_f3d_644 11th cir n e 29th drive 175_f3d_1304 11th cir nw thurman st 164_f3d_1191 9th cir one mercedes e420 175_f3d_1129 9th cir one toyota pickup truck a 2d d c c a one toshiba color television mcglory 213_f3d_147 3d cir ahmad 213_f3d_805 4th cir all assets and equipment of west side building corp 188_f3d_440 7th cir apampa 179_f3d_555 7th cir bajakajian 84_f3d_334 9th cir aff’d 524_us_321 cunan 156_f3d_110 1st cir david 131_f3d_55 2d cir dusenbery 201_f3d_763 6th cir hooper 229_f3d_818 9th cir infelise 159_f3d_300 7th cir 991_fsupp_1077 s d iowa 152_f3d_1200 9th cir seizure of realty not physically intrusive real_property not divisible excessive fines - eighth amendment conveyance forfeiture statute excessive fines clause notice civil forfeiture and excessiveness mobility of personal_property time limit for appeal excessive fine proceeds of cmir violation criminal forfeiture under u s c sec_982 found to be excessive res_judicata undue delay analysis defective administrative notice does not preclude judicial forfeiture no community_property interest in property criminally forfeited racketeer’s nonforfeitable individual_retirement_annuity subject_to criminal forfeiture return of seized property forfeitures not deductible for tax purpose sec_12 case name citation issues bulletin page 221_f3d_976 7th cir land winston county 163_f3d_1295 11th cir notice and incarcerated property owner due process - seizure of real_property marolf 173_f3d_1213 9th cir deficient notice expiration of statute_of_limitations mcglory 202_f3d_664 3d cir notice must be sent to prisoner at place of confinement notice and magistrate’s jurisdiction patel 135_f3d_1312 9th cir pelullo 178_f3d_196 3d cir real_property known as dolorosa street 167_f3d_509 9th cir real_property located pincite dry creek road granville ohio 174_f3d_720 6th cir 141_f3d_1468 11th cir 136_f3d_1334 d c cir weng 137_f3d_709 2d cir wetterer 210_f3d_826 2d cir property not part of bankruptcy_estate standing and probable cause warrantless ex_parte seizure third party interest in property subject_to lis pendens notice to inmate notice to inmate innocent owner defense viii grand jury 131_f3d_99 2d cir disclosure exceptions outside rile e - historical interest in re grand jury investigation 182_f3d_668 9th cir sixth amendment-conflict of interest smith 992_fsupp_743 d n j sentencing memorandum containing grand jury information on the internet violates rule e case name citation issues bulletin page ahmad 202_f3d_588 2d cir alalade f 3d 4th cir andra 218_f3d_1106 9th cir banuelos-rodriguez 215_f3d_969 9th cir bauer 129_f3d_962 7th cir bennett 161_f3d_171 3d cir ix sentencing uncharged state offenses not relevant conduct restitution not offset by assets forfeited tax loss is total amount of loss that was object of offense differing prosecution policy does not justify downward departure no express findings required to impose fines organizer of criminal activity abuse of trust acceptance of responsibility barakat 130_f3d_1448 11th cir meaning of the term year in u s s g 2t1 b and abuse of trust block a f t r 2d ria 6th cir unpublished relevant conduct provisions apply to enhancement for aggravating role in offense other than offense of conviction bockius 228_f3d_305 3d cir bok 156_f3d_157 2d cir brennick 134_f3d_10 1st cir brimah 214_f3d_854 7th cir bryant 128_f3d_74 2d cir buckley 192_f3d_708 7th cir bugai restricted use a f t r 2d ria 6th cir candelario-cajero 134_f3d_1246 5th cir money laundering and heartland restitution intent to pay withholding taxes late fails to justify departure exclusionary rule does not apply to sentencing tax loss computation properly estimated by extrapolation enhancement for obstruction of justice applicable even if obstruction unsuccessful restitution concurrent sentences case name citation issues bulletin page case 180_f3d_464 2d cir cefaratti 221_f3d_502 3d cir chmielewski 218_f3d_840 8th cir cianci 154_f3d_106 3d cir coleman 138_f3d_616 6th cir obstruction of justice heartland and grouping tax loss and extraterriotrial acts sophisticated means and abuse of trust enhancement selective prosecution ruled a ground for possible downward departure contreras 180_f3d_1204 10th cir grounds for departure extraordinary post-offense rehabilitation deshon 183_f3d_888 8th cir dunigan 163_f3d_979 6th cir restitution-ability to pay fagan f 3d 10th cir faria 161_f3d_761 2d cir fitzgerald 232_f3d_315 2d cir georges 146_f3d_561 8th cir gormley 201_f3d_290 4th cir downward departure - exceptional remorse family circumstances downward departure mail fraud scheme and tax_evasion counts should be grouped relevant conduct implicating customers in fraud scheme justifies obstruction enhancement guidry 199_f3d_1150 10th cir abuse of trust must be found in relation to victim hemmingston 157_f3d_347 5th cir hendrick 177_f3d_547 6th cir 183_f3d_535 6th cir downward departure in campaign debt money laundering scheme sentencing of aiders and abettors collection of deficiency page case name citation issues bulletin hoffer 129_f3d_1196 11th cir no departures based on voluntary forfeiture or loss of professional license hoover 175_f3d_564 7th cir howle 166_f3d_1166 11th cir huang 178_f3d_184 3d cir hunerlach 197_f3d_1059 11th cir restitution waiver of right to appeal downward departure based on substantial assistance tax loss does not include interest and penalties in re sealed case sentencing guidel149_f3d_1198 d c cir substantial assistance departure without government motion contractual nature of plea agreements isaac 141_f3d_477 3d cir kaye 140_f3d_86 2d cir kelly 147_f3d_172 2d cir klisser 190_f3d_34 2d cir ladum 141_f3d_1328 9th cir lindsay 184_f3d_1138 10th cir maloof 205_f3d_819 5th cir martinez-rios 143_f3d_662 2d cir mcdonald 165_f3d_1032 6th cir mikaelian 168_f3d_380 th cir downward departure for assistance to local law enforcement u s s g 2t1 applied to sec_7212 and special skill enhancement intended loss not limited by impossibility co-conspirator’s tax loss relevant conduct acceptance of responsibility criminal responsibility of employees must be found for organizer leader enhancement no double counting corporate income obstruction of justice ability to pay restitution page case name citation issues bulletin minneman 143_f3d_274 7th cir attorney’s special skills sophisticated means and restitution monarch funding corp 983_fsupp_442 s d n y findings in criminal sentencing hearing can support offensive collateral_estoppel mounkes 204_f3d_1024 10th cir willful material false testimony justifies obstruction adjustment napoli 179_f3d_1 2d cir noah 130_f3d_490 1st cir o’kane 155_f3d_969 8th cir parrott 148_f3d_629 6th cir prince 204_f3d_1021 10th cir grouping fraud and money laundering special skill enhancement grouping money laundering and mail fraud obstruction of justice enhancement conduct unrelated to offense of conviction admissible to determine acceptance of responsibility punke 143_f3d_274 7th cir cert_denied 119_sct_1145 restitution rice 185_f3d_326 5th cir rivera walden 196_f3d_144 2d cir rodriguez-lopez 198_f3d_773 9th cir romero-rendon 198_f3d_745 9th cir romero-rendon 198_f3d_745 9th cir saacks 131_f3d_540 5th cir sanchez-rodriguez 161_f3d_556 9th cir grouping drug and money laundering offenses failure to cooperate not reason to enhance government consent not necessary for departure unchallenged prior violent crime enhancement does not require clear_and_convincing evidence unchallenged psr constitutes clear_and_convincing evidence bankruptcy fraud koon downward departure schachter v commissioner 113_tc_14 criminal fine page case name citation issues bulletin not creditable against civil tax plea agreements estimating tax loss proof of government outrageous conduct not required for downward departure obstruction of justice enhancement organizer or leader enhancement post-sentence rehabilitation underlying nonserious crime sole minor participant reduction use of presumptive tax_rates disputed computations must be resolved at sentencing hearing downward departure based on due process claim grouping and same victim schilling 142_f3d_388 7th cir scholl 166_f3d_964 9th cir searcy 233_f3d_1096 8th cir shetty 130_f3d_1324 9th cir simmons 154_f3d_765 8th cir sims 174_f3d_911 8th cir smith 186_f3d_290 3d cir snoddy 139_f3d_1224 8th cir spencer 178_f3d_1365 10th cir standard 207_f3d_1136 9th cir tenzer 213_f3d_34 2d cir thayer 201_f3d_214 3d cir thomas 181_f3d_870 7th cir page case name citation issues bulletin no departure for dependent personality incidental nature of money laundering government has burden to prove tax loss no grouping for wire fraud and tax_evasion no grouping of tax_evasion and bankruptcy fraud counts grouping of title and title offenses threadgill 172_f3d_357 5th cir tucker 217_f3d_960 8th cir vitale 159_f3d_810 3d cir williams 154_f3d_655 6th cir zanghi 189_f3d_71 1st cir 131_f3d_62 2d cir brace 145_f3d_247 5th cir 47_fedclaims_698 41_fedclaims_96 fed cl 129_f3d_1186 11th cir nolan-cooper 155_f3d_221 3d cir x undercover operations closure of courtroom for undercover agent’s testimony entrapment - positional predisposition informant agreements rewards obtaining financial records sexual misconduct by irs undercover agent with money laundering target did not constitute outrageous government conduct sligh 142_f3d_761 4th cir entrapment swofford no 99-cv-4064-jpg u s dist lexis s d ill date unpublished sec_7623 does not create contract between irs and confidential informant page case name citation issues bulletin xi surveillance technology ailemen 986_fsupp_1228 n d cal necessity under wiretap law andreas 216_f3d_645 7th cir 200_f3d_109 3d cir 146_f3d_1003 d c cir brooks 215_f3d_842 8th cir 171_f3d_711 1st cir duran 189_f3d_1071 9th cir goodwin 141_f3d_394 2d cir in re application_for 2_fsupp2d_177 w d mass in re complaint as to the conduct of daniel j gatti p 3d reyna 218_f3d_1108 9th cir rivera 153_f3d_809 7th cir informant acting at direction of fbi agent amounts to color of law first amendment precludes civil liability for innocent interception of illegal wiretap clean hands exception informant’s persuasion of defendant to sell narcotics to agent is entrapment wiretap statutory damages limited interceptions of cellular telephones rules for obtaining roving wiretap do not apply to cellular phones alternative investigative means requirement and representation as to all known informants attorneys government or private may not misrepresent identity to gather information without violating oregon code of professional responsibility wiretap order issued prior to doj approval invalid judicial sealing of wiretap tape recording not prerequisite to admission of compilation recording from duplicate tapes smith 155_f3d_1051 9th cir recording of voicemail constitutes illegal interception of wire communication turner 209_f3d_1198 10th cir no reasonable expectation of privacy for intercepted communications in patrol car xii miscellaneous topics albanese 195_f3d_389 8th cir anti-gratuity statute case name citation issues bulletin case name citation issues bulletin page anty 203_f3d_305 4th cir 195_f3d_1039 9th cir anti-gratuity statute questioning outside miranda cleveland 121_sct_365 unissued state license not property under mail fraud statute colorado supreme court 189_f3d_1281 10th cir mcdade act 45_fedclaims_556 172_f3d_1141 9th cir dezarn 157_f3d_1042 6th cir gandy a f t r 2d ria e d tex gilbert 198_f3d_1293 11th cir disclosure to informant summons - voluntary disclosure misworded question will not preclude perjury prosecution disclosure of criminal investigation credentials hyde amendment - prosecutorial misconduct gardner 23_fsupp2d_1283 n d okla hyde amendment harris 209_f3d_165 3d cir holland 34_fsupp_346 e d va anti-gratuity statute hyde amendment - attorneys fees i o publishing co 131_f3d_1314 9th cir fraud_penalty does not constitute double_jeopardy jarvis v united_states 43_fedclaims_537 informant’s suit to enforce reward lee 82_fsupp2d_384 e d pa date bankruptcy fraud statute narrowed lindberg 220_f3d_1120 9th cir hyde amendment - abuse_of_discretion o’keefe v mcdonnell douglas corp 132_f3d_1252 8th cir doj policy pertaining to contacts with represented persons invalidated case name citation issues bulletin page ranger elec communs inc 22_fsupp2d_667 w d mich government liable for attorney’s fees for failure to turn over brady material ranger elec communs inc 210_f3d_627 6th cir raymond 228_f3d_804 7th cir 526_us_813 sabat v i r s no u s dist lexis w d pa date unpublished hyde amendment - day filing limitation injunction against sale of tax protest program does not violate first amendment juror unanimity irs may deny convicted criminals electronic_filing program 192_f3d_295 2d cir collateral_estoppel singleton 144_f3d_1343 10th cir anti-gratuity statute reinterpreted sun-diamond growers of california 526_us_398 illegal gratuity statute truesdale 211_f3d_898 5th cir talao 222_f3d_1133 9th cir ware 161_f3d_414 6th cir hyde amendment - standard of proof ex_parte communications rule applies to pre indictment non custodial settings anti-gratuity statute leniency for testimony