- 2 - J purported to form a qualified employee stock ownership plan for Ps. R determined deficiencies, and J, on behalf of Ps, petitioned this Court. R believed J had a conflict of interest under Rule 24(g), Tax Court Rules of Practice and Procedure. J informed Ps as to his potential conflict of interest, received Ps’ informed consent to continue representing them in the proceeding, and retained H to represent Ps as co- counsel. R informed the Court of J’s potential conflict of interest during a conference call and in a pretrial memorandum. The cases settled before trial, decisions were entered, and these decisions are now final. Ps move the Court to vacate the decisions, asserting primarily that R and J did not adequately inform the Court of J’s potential conflict of interest, which, in turn, constituted fraud on the Court. Held, Ps’ motion will be denied for failure to establish a fraud on the Court. MEMORANDUM FINDINGS OF FACT AND OPINION LARO, Judge:2 Petitioners move the Court for leave to file a motion under Rule 1623 to vacate the stipulated decisions which were entered in these cases on February 21, 2002. The motion asserts that those decisions were the result of fraud on the Court. Following an evidentiary hearing on the substance of petitioners’ motion, we decide whether petitioners have established a fraud on the Court sufficient for us to vacate 2 These cases were reassigned to Judge David Laro on Aug. 17, 2004, by order of the Chief Judge. 3 Unless otherwise noted, Rule references are to the Tax Court Rules of Practice and Procedure. Section references are to the applicable versions of the Internal Revenue Code.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