River City Ranches 4 v. Commissioner
Opinion
Lead Opinion
MEMORANDUM
River City Ranches, #4, J.V. et al., (collectively “River City”), three partnerships, appeal the decision of the United States Tax Court denying its motion to vacate judgment and hold an evidentiary hearing. Holding that the theft deductions now claimed have not been shown to be deductions of the partnerships in the applicable years, we affirm the judgment of the Tax Court.
The parties are familiar with the facts. The pivotal facts are that Walter J. Hoyt III was the Tax Matters Partner (“TMP”) for each of the partnerships in March 1997 when their cases were tried, and he controlled the information available to the lawyers for River City. The Internal Revenue Service was investigating Hoyt for tax fraud at the time of the trial, and after the trial he was indicted for, and convicted of, tax fraud. On January 19, 2000, a new TMP, Leon Shepard, was appointed. On March 28, 2000, the Tax Court decision became final. On May 1, 2000, Shepard moved to vacate the decision on the ground that Hoyt had committed fraud on the court. Shepard also asked for an evidentiary hearing. The Tax Court denied his motion.