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Golovin v. Comm'r of Internal Revenue

United States Tax Court
Aug 19, 2022
No. 27785-21 (U.S.T.C. Aug. 19, 2022)

Opinion

27785-21

08-19-2022

DMITRIY V. GOLOVIN, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent


ORDER

Mark V. Holmes Judge

This case is on the Court's September 12, 2022 trial calendar for San Francisco, California. Petitioner asked for a conference call with the Court after respondent moved for a continuance - he is understandably eager to resolve a dispute that has lasted for four years and swept into audit his now-defunct business and at least two of his fellow owners.

The problem is in part traceable to IRS recordkeeping. The IRS starts an administrative file for each of its audits; here that led to separate files for its audits of the individual business owners and their jointly owned corporation. The main reason for the audit of Mr. Golovin seems to have been his habit of meeting the corporation's cash requirements by using his personal funds and then squaring up later when the company had money. Figuring out the tax consequences of this practice can be complicated, yet the administrative file for the corporation has not made its way to the IRS lawyers working on this case and may have been ordered up by different IRS lawyers working on a case brought by one of Mr. Golovin's partners.

The solution, as we discussed with the parties, has to be coordination. The IRS's lawyers for their part now know of the related case. They promised to work to share the administrative file for the corporation when it arrives. Mr. Golovin has already provided thousands of pages of his own records that the IRS now needs to review, understand, and look at together with the corporation's records in the corporation's own file. The IRS also understands that this case might be more about tracing cash flows between Mr. Golovin and the corporation than it is about characterizing him as either an employee or owner.

But figuring this out will take some time. It is therefore

ORDERED that respondent's July 22, 2022 motion for a continuance is granted in that this case is stricken from the Court's September 12, 2022 trial calendar for San Francisco, California. It is also

ORDERED that this division of the Court retains jurisdiction over this case. It is also

ORDERED that on or before October 3, 2022 respondent will file a status report that describes his progress in retrieving and reviewing the relevant administrative files and discussing them with Mr. Golovin as part of informal discovery.


Summaries of

Golovin v. Comm'r of Internal Revenue

United States Tax Court
Aug 19, 2022
No. 27785-21 (U.S.T.C. Aug. 19, 2022)
Case details for

Golovin v. Comm'r of Internal Revenue

Case Details

Full title:DMITRIY V. GOLOVIN, Petitioner v. COMMISSIONER OF INTERNAL REVENUE…

Court:United States Tax Court

Date published: Aug 19, 2022

Citations

No. 27785-21 (U.S.T.C. Aug. 19, 2022)