Opinion
23349-12
07-12-2023
TIMOTHY HERBST, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Mark V. Holmes Judge
This case was continued from the Court's September 22, 2014 trial calendar for Phoenix, Arizona. The long delay was due to a pending criminal investigation in Costa Rica. Petitioner -- an American living in Costa Rica - allegedly had a faithless assistant who embezzled a very great deal of his wealth. This has led to a criminal investigation and, more importantly for resolution of this case, the possession of his business records relevant to this case by the assistant and Costa Rican authorities.
All agreed to put this case on a long-term status-report track. But as the case entered its second decade without the completion of even informal discovery, it dawned on us that it likely made more sense to treat the records as irretrievable. We have since tried to figure out a way to proceed by less direct proofs, and began imposing deadlines for the completion of discovery.
We spoke with the parties again today. They reported that respondent's national office is willing to reach out to Costa Rican authorities to help with informal discovery. If this works, the case may finally settle. And if it doesn't, it appears likely that the Court will be visiting Phoenix in January 2024 and this case could be added to that session. With these understandings, it is
ORDERED that on or before October 11, 2023 the parties shall file a status report that describes their progress toward settlement.