U.S. Magistrate Allows Deposition of IRS Officials in Tax Shelter Case

Tuesday, June 29, 2004

Tax Analysts reports that U.S. Magistrate Judge Beth P. Gesner (U.S. District Court – Maryland) on Monday denied a government motion for a protective order to prevent the depositions of two IRS officials in the Black & Decker refund suit:

Gesner’s ruling leaves Frank Y. Ng, Director of Prefiling and Technical Guidance in the IRS Large and Midsize Business Division (LMSB), and David G. Harris, a former LMSB manager who reported to Ng, exposed for depositions in the case, and it could create a chilling effect among government officials at future speaking engagements, said one practitioner.

The ruling stems from the plaintiff’s attempt to depose Ng and Harris regarding statements that the IRS officers purportedly made in the past about Announcement 2002-2. In that announcement, the IRS said it would waive accuracy-related penalties under section 6662 for underpayments if a taxpayer disclosed tax shelters and other questionable transactions.

About the Author

Paul Caron

Paul Caron was named Duane and Kelly Roberts Dean of Pepperdine University School of Law on June 1, 2017. Dean Caron joined the Pepperdine faculty in 2013 after serving as the Dorothy and Leonard Straus Distinguished Visiting Professor of Law in the spring semesters of 2010 through 2013. He served as Associate Dean for Research and Faculty Development at Pepperdine in 2015-2017. Before coming to Pepperdine, he was Associate Dean of Faculty and Charles Hartsock Professor of Law at the University of Cincinnati College of Law.