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provided representation. In December 1998, the attorney filed an
application with the IRS for audit reconsideration of the 3
taxable years that were the subject of the Tax Court proceeding
and the stipulated decision entered on March 26, 1997. In
September 1999, the attorney was advised by representatives of
the IRS District Director’s Office in Chicago, Illinois, that
audit reconsideration could not be granted.
On February 14, 2000, petitioner filed its Motion For Leave
To File Petitioner’s Motion To Vacate in respect of the
stipulated decision entered on March 26, 1997, and lodged its
Motion to Vacate.
In March 2000, petitioner, James, and John filed a civil
action against (inter alia) Jaffe, Coleman, and CJ&J (see supra
note 6) in the circuit court for Lake County, Illinois. The
complaint includes counts for breach of contract, breach of
fiduciary duty, and malpractice. The complaint’s “Statement of
Facts” includes the following allegations:
On March 13 [sic], 1996, the IRS sent Trans World
a notice of deficiency of income tax for tax years
ended August 31, 1990, August 31, 1992, and August 31,
1993, claiming an increase in tax to be paid by Trans
World for such years of $292,604.00 and penalties of
$101,573.00, a copy of which notice is attached hereto
as Exhibit A.
Upon Plaintiffs’ receipt of Exhibit A they
immediately gave the same to Jaffe who advised them
that the notice was not a problem and that the Audit
would eventually be resolved in Plaintiffs’ favor.
[Emphasis added.]
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