Opinion
16277-16L
06-28-2023
KEVIN J. MIRCH & MARIE C. MIRCH, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Patrick J. Urda, Judge.
This case was called from the calendar for a trial beginning on June 22, 2023, in San Diego, California. Both parties appeared and were heard. This Order memorializes the resolution of certain matters at trial.
Prior to trial, we permitted the Commissioner to file a first amendment to his first amended answer, to which the Mirches filed a response. With no objection by the parties, the Court will recharacterize this document as the Mirches' reply to first amendment to first amended answer.
On June 21, 2023, the Commissioner filed a motion in limine, seeking to exclude testimony from certain IRS (and Tax Court) witnesses that had been listed on petitioners Kevin and Marie Mirch's pretrial memorandum. Given the proximity to trial, the Court instructed the parties to present their positions on this motion during the first day of trial.
After hearing from the parties and for reasons more fully articulated at trial, we will deny the motion in limine in part and grant it in part. As to the former, we denied the motion as to the testimony of Teresita Paz, the IRS settlement officer with authority over the Mirches' collection due process case, with respect to the completeness of the administrative record and the Mirches' allegations of bad faith. We determined that no further testimony from the other listed witnesses is necessary, and we thus will grant the motion in limine in all other respects.
After the conclusion of Ms. Paz's testimony, the Mirches took the position that they could not continue litigation of the trial before obtaining an ethics opinion from the State Bar of California (State Bar). In an abundance of caution and over the Commissioner's objection, the Court will stay proceedings for the Mirches to confer with the State Bar. After doing so, the Mirches will report back to the Court, and we will take appropriate action for the conclusion of this trial.
Upon due consideration, and for cause more fully appearing in the transcript of the proceeding, it is
ORDERED that the Mirches' response to first amendment to first amended answer filed June 21, 2023, is hereby recharacterized as the Mirches' reply to first amendment to first amended answer. It is further
ORDERED that the Commissioner's motion in limine is denied in part with respect to the testimony of Ms. Paz, and is granted in part in all other respects. It is further
ORDERED that this case is continued until further direction of the Court and jurisdiction of this case remains with the undersigned Judge. It is further
ORDERED that, on or before June 30, 2023, the Mirches shall submit to the State Bar a letter requesting advice on the representation question that arose at trial, and shall file a status report with this Court reporting that the letter has been submitted. It is further
ORDERED that, on or before August 1, 2023, and every 30 days thereafter, the Mirches shall file a status report in this Court describing any developments regarding the State Bar inquiry.