Opinion
23349-12
12-05-2023
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 tried to figure out a way to proceed by less direct proofs, and began imposing deadlines for the completion of discovery.
Respondent's national office has now tried to reach out to Costa Rican authorities to help with informal discovery. This has not worked, at least yet. The Court will be visiting Phoenix for a session starting on January 29, 2024 and this case could be added to that session. Or the settlement negotiations the parties mention in their last status report might be fruitful. To keep us apprised, it is
ORDERED that on or before December 18, 2023 the parties shall file a status report that describes their progress toward settlement.