- 11 - 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.]Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011