Briefing Complete in Bergmann

February 8, 2013 by  
Filed under Bergmann, Individual, Penalties

The Bergmanns participated in a listed transaction promoted by KPMG, known as the Short Option Strategy.  When the Bergmanns filed their amended return in March 2004, the IRS had already served KPMG with summonses targeted at KMPG’s promotion of the Short Option Strategy.  As discussed in an earlier post, the Tax Court held that the Bergmanns failed to timely file a qualified amended return and thus were subject to the 20-percent accuracy related penalty.  Under the regulations in effect when the taxpayers filed their return, the time for filing a qualified amended return terminated when “any person described in … Read More