Opinion
12890-20
02-15-2024
HILLSIDE HOLDINGS, LLC, INLAND CAPITAL SIERRA HOLDINGS, LLC, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Mary Ann Cohen Judge
The Petition in this case was filed November 4, 2020, and challenged a deficiency and penalties for the tax year 2016. On April 13, 2022, respondent filed a Motion to Stay Proceedings (Doc. 20) because of certain related criminal cases. Rather than grant a stay for an indefinite period, the Court ordered a series of status reports from the parties. From the last Joint Status Report filed February 14, 2024 (Doc. 37), and all the interim Status Reports, it appears that the related criminal proceedings will not be finalized for years. Meanwhile, interest is accruing on the deficiency, if any, and evidence is becoming harder to obtain and/or is becoming stale. Particularly, evidence of value as of the tax year is becoming harder to obtain and less reliable. The parties are therefore urged to attempt to resolve this case without regard to the criminal proceedings. Upon due consideration and for cause, it is hereby
ORDERED that on or before May 15, 2024, the parties, jointly or separately, shall file a status report addressing in detail the feasibility of trial of this case without any witnesses who are subject to criminal proceedings, for example, trial of the valuation issue as of the date of the transaction that is the subject of this case.