Jeffrey R. Taylor - Page 10

                                       - 10 -                                         
          6653(b)), as a part of the civil tax liabilities, are very much a           
          part of the investigation.                                                  
               There is, however, a more fundamental error in petitioner's            
          reasoning.  The gravamen of the argument from petitioner's point            
          of view is that the decision to hold in abeyance the civil tax              
          resolution procedures is simply a ministerial act.  As we have              
          noted, the criminal and civil aspects of a tax fraud                        
          investigation are inextricably intertwined.  But there is no                
          question that once the criminal investigation begins there is a             
          clear distinction between ultimate procedural avenues that each             
          takes, and "It has long been the policy of the I.R.S. to defer              
          civil assessment and collection until the completion of criminal            
          proceedings."  Badaracco v. Commissioner, 693 F.2d 298, 302 (3d             
          Cir. 1982), affd. 464 U.S. 386 (1984).                                      
               This policy is predicated on various considerations.  The              
          often cited reason is potential conflict between avenues of civil           
          and criminal discovery if parallel civil and criminal cases                 
          proceed.  Compare Campbell v. Eastland, 307 F.2d 478 (5th Cir.              
          1962), with Commissioner v. Licavoli, 252 F.2d 268 (6th Cir.                
          1958), affg. T.C. Memo. 1956-187.  But there are other                      
          considerations such as where a party or witness may be put in a             
          situation of testifying when the testimony may be incriminating.            
          See United States v. Kordel, 397 U.S. 1 (1970).  There is also              
          the confusion inherent in two cases that are proceeding                     

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011