United States v. Neil T. Nordbrock

Neil T. Nordbrock appeals from (1) an order of the district court granting an injunction prohibiting him from preparing tax returns, and (2) a judgment of the district court sustaining statutory penalties against him for failure to disclose a list of tax returns which he prepared. He argues that he was entitled to a jury trial and that the district court erred in finding that he willfully failed to produce the tax return list. We reverse and remand.

I.

From 1978 to 1981, Neil Nordbrock was in the business of preparing income tax returns, and, during that time, he prepared approximately 1,800 federal returns. Nordbrock was a member of the American Law Association (ALA) and prepared returns for some ALA members. The ALA was allegedly part of an illegal tax shelter scheme. The IRS served Nordbrock with a request for information pursuant to 26 U.S.C. § 6107 (b). Section 6107(b) requires (1) that a tax preparer retain either copies of all returns filed or a list of taxpayers for whom he has prepared returns, and (2) that the preparer make the copies or list available for inspection upon demand.

Upon receiving the IRS request, Nord-brock retained as counsel Donald MacPher-son. After…