Opinion
12101-19
09-08-2022
NORTH BY NORTHWEST VII, LLC, NORTHWEST VII INVESTMENTS, LLC, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Elizabeth Crewson Paris Judge
On June 10, 2022, respondent filed a Motion for Leave to File Amendment to Answer to Petition, docket entry 86, and concurrently lodged an Amendment to Answer, docket entry 87.
By Order dated July 13, 2022, docket entry 89, the Court directed petitioner, on or by July 29, 2022, to file a response to respondent's Motion.
By Order dated July 20, 2022, docket entry 91, the Court granted petitioner's July 15, 2022, Unopposed Motion for Extension of Time to Respond to Respondent's Motion for Leave to File Amendment to Answer, docket entry 90, and directed petitioner, by August 30, 2022, to file a response to respondent's Motion for Leave to File Amendment to Answer, docket entry 86.
On August 30, 2022, petitioner filed: (1) a Response in Opposition to Respondent's Motion for Leave to Amend Answer and Statement of Material Facts; (2) a Memorandum of Law in Support of its Opposition to Respondent's Motion for Leave to Amend Answer; (3) a Declaration of Michelle Levin; (4) a Declaration of Sarah Ray; and (5) a Declaration of Bryan Kelley, docket entries 94 through 98, respectively.
The Court will direct respondent to file a response to petitioner's Response, Memorandum of Law, and Declarations.
Respondent's Motion for Leave to File Amendment to Answer to Petition, docket entry 86, indicates in paragraph 6 thereof that respondent has become aware of additional facts since respondent filed his Answer and seeks to amend the Answer to affirmatively raise an additional argument that the adjustments to partnership items on North by Northwest VII's 2015 tax return and any resulting understatements arising therefrom are due to fraud under I.R.C. § 6663(a).
The Court will direct respondent to provide the Court with specific information regarding the newly discovered facts, including the dates on which those facts became available to respondent.
After due consideration, and for cause, it is
ORDERED that respondent shall, on or before September 30, 2022, file a response to: (1) Petitioner's Response in Opposition to Respondent's Motion for Leave to Amend Answer and Statement of Material Facts; (2) Petitioner's Memorandum of Law in Support of its Opposition to Respondent's Motion for Leave to Amend Answer; (3) the Declaration of Michelle Levin; (4) the Declaration of Sarah Ray; and (5) the Declaration of Bryan Kelley, docket entries 94 through 98, respectively. The response shall include more specific information regarding the discovery of the additional facts, including whether those facts were disclosed prior to the filing of respondent's Answer.