Trans World Travel - Page 11




                                       - 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