Opinion
7638-21
12-07-2023
RENEWABLE ENERGY PROJECTS MANAGEMENT, LLC, CHARLES KIRKLAND, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
MARK V. HOLMES JUDGE
This case is on the March 4, 2024 Las Vegas, Nevada trial calendar. It arises from a complicated partnership transaction that the IRS says is almost entirely fraudulent, with tiered partnerships passing through and indirect partners' ultimately claiming, energy credits and depreciation allowances for assets that never existed or that petitioner never owned. The proceeding is governed by the rules of the now-repealed TEFRA. TEFRA required partnerships that it governed to designate a Tax Matters Partner. The TMP of petitioner was convicted of criminal tax offenses and then became a fugitive from justice.
This development has complicated resolution of the case. We spoke with the parties today because petitioner's counsel - lacking a TMP to communicate with - understandably wants to withdraw. Respondent's counsel does not want the case to come to a dead stop, and pointedly observed that it is the TMP's job under TEFRA to keep partners apprised of tax proceedings.
In the absence of a TMP who can be found, all agreed that petitioners' counsel would send to petitioners' direct partners copies of the petition, counsel's pending motion to withdraw, and contact information for respondent's counsel. Once they do so, the Court will grant their motion to withdraw. Respondent's counsel will in the meantime consult with the IRS's TEFRA experts on possible next steps.
It is therefore
ORDERED that on or before February 8, 2024 the parties file a joint status report describing petitioner's success in notifying petitioner's direct partners and respondent's suggestions on how to move this case forward.