Opinion
14546-15 28751-15
02-28-2023
YA GLOBAL INVESTMENTS, LP F.K.A. CORNELL CAPITAL PARTNERS, LP ET AL., Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
JAMES S. HALPERN, JUDGE
In these cases, we review notices of final partnership administrative adjustment (FPAAs) in which, among other things, respondent determined that YA Global Investments, LP (the partnership), is liable for withholding tax under section 1446 of the Internal Revenue Code for the taxable years ended December 31, 2006, 2007, 2008, and 2009. The partnership's tax matters partners timely filed petitions that assigned error to the FPAAs' determinations. We tried the cases during October 2020, and the parties have submitted posttrial briefs and supplemental briefs. The issues addressed at trial remain under consideration.
Respondent also issued FPAAs for the partnership's 2010 and 2011 taxable years but made no adjustments to its partnership items for those years.
During a conference call with the parties' counsel on January 5, 2023, respondent's counsel advised the Court that, while petitioners' counsel had been provided details concerning respondent's calculation of the partnership's section 1446 withholding tax liability for the years in issue, those details did not appear in the record. (Petitioners' counsel confirmed that they had received those details well before trial.)
Accordingly, it is hereby
ORDERED that respondent shall, on or before March 14, 2023, submit a report explaining in detail the calculations underlying his determination of the partnership's section 1446 withholding tax liability for each of the years in issue and, to the extent that those calculations rely on figures that appear in the record, providing appropriate citations. It is further
ORDERED that, if the calculations that respondent provides in response to this order differ from those previously provided to petitioners' counsel, or if petitioners object to those calculations for reasons beyond those raised in their posttrial briefs, petitioners may advise the Court by filing a motion for leave to respond to respondent's report, provided that any such motion is filed within one week after respondent submits his report.