- 11 - consider a nominee theory and to look at petitioner’s “money stream” were substantive in nature and clearly constituted prohibited ex parte communications that were per se prejudicial to petitioner. Respondent argues that grounds independent of the ex parte communications would support the Appeals Office’s adverse determination (namely, petitioner’s conviction for tax evasion and noncompliance by petitioner’s eldercare business with certain Federal employment tax laws). These alleged grounds do not overcome or render moot the prohibited ex parte communication rules, as respondent appears to argue. Respondent also argues that because petitioner eventually learned from the Appeals officer the content of the ex parte communications, petitioner was not kept in the dark with regard thereto and was not harmed. Nothing, however, in either RRA 1998 or Rev. Proc. 2000-43, supra, allows respondent’s Appeals officer to avoid the rule against prohibited ex parte communications by later informing the taxpayer about the communications. Respondent characterizes the ex parte communications as “routine factual investigation.” We disagree. Although the ex parte communications may have been in good faith and intended to assist in the development of relevant facts, they were ex parte and substantive, and they were covered by the prohibition discussed above.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011