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Big Win For NJ Tax Attorneys Against The IRS

Author: Scarinci Hollenbeck, LLC

Date: January 9, 2018

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Experienced Tax Attorneys, Jeffrey R. Pittard and Harvey R. Poe, Successfully Obtain Summary Judgment Against the IRS

Lyndhurst, New Jersey, January 9, 2018 – Scarinci Hollenbeck is pleased to congratulate both Jeffrey R. Pittard and Harvey R. Poe on their recent victory against the IRS in Rafizadeh v. Commissioner, 150 TC 1 (2018). Marking the first Tax Court decision of 2018, the case considered whether the six-year statute of limitations set forth in IRC Section 6501(e)(1)(A)(ii) applied to a taxpayer who failed to file FBAR forms from 2006 through 2008.

Results may vary depending on your particular facts and legal circumstances

IRC Section 6501(e)(1)(A)(ii) provides a six-year statute of limitations if a taxpayer omits from gross income amounts attributable to one or more assets with respect to information required under IRC Section 6038D. Despite the Government’s attempt to draw parallels between IRC Section 6038D and previously enacted statutes, the Tax Court ultimately determined that the statute being used to assess additional taxes from non-compliant taxpayers with foreign accounts could not be used for tax years prior to 2010 because there was no IRC Section 6038D filing requirement prior to that year. As a result of this ruling, the taxpayer ended up owing no additional taxes. Additionally, this ruling could potentially prevent the Government from collecting millions of dollars from other taxpayers in similar situations, making it a landmark decision for the US Tax Court.

“I’m proud of both Jeffrey and Harvey for their work on this particular case. The ruling is a testament to their proficiency and serves as a prime example of the expertise in Scarinci Hollenbeck’s Tax Law group. It is a win for our client as well as individuals finding themselves in similar situations involving the IRS,” said Frank Brunetti, Chair of Scarinci Hollenbeck’s Tax Law group.

A PDF of the full Tax Court opinion in Rafizadeh v. Commissioner, 150 TC 1 (2018) can be found here.

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