Mary McNulty Quoted in Bloomberg BNA Daily Tax Report on Fraudulent Intent

“Attorney’s Fraudulent Intent Didn’t Suspend Limitations Period”

A tax shelter promoter’s fraudulent intent didn’t extend the statute of limitations for the IRS to assess taxes against the taxpayers (BASR P’ship v. United States, Fed. Cir., No. 14-05037, 7/29/15).

A split panel of the U.S. Court of Appeals for the Federal Circuit ruled July 29 that a former Jenkens & Gilchrist attorney’s intent to evade taxes when he marketed a tax avoidance scheme to taxpayers didn’t suspend the three-year statute of limitations for assessment.

Mary A. McNulty, a partner at Thompson & Knight LLP in Dallas, told Bloomberg BNA in a July 29 e-mail that she thought “the decision clearly reached the correct result. The IRS shouldn’t be able to impute a third party’s fraudulent intent to a taxpayer to extend the statute of limitations.”