Announcement 2010-51 — Internal Revenue Bulletin 2010-33

Censured by decision after hearing, Monetary penalty imposed after hear- ing, and Disqualified after hearing —An administrative law judge (ALJ) conducted an evidentiary hearing upon OPR’s complaint alleging violation of the regulations and issued a decision imposing one of these sanctions. After 30 days from the issuance of the decision, in the absence of an appeal, the ALJ’s decision became the final agency decision.

Disbarred by default decision, Sus- pended by default decision, Censured by default decision, Monetary penalty im- posed by default decision, and Disqual- ified by default decision —An ALJ, after finding that no answer to OPR’s complaint had been filed, granted OPR’s motion for a default judgment and issued a decision imposing one of these sanctions.

Disbarment by decision on appeal, Suspended by decision on appeal, Cen- sured by decision on appeal, Monetary penalty imposed by decision on ap- peal, and Disqualified by decision on appeal —The decision of the ALJ was appealed to the agency appeal authority, acting as the delegate of the Secretary of the Treasury, and the appeal authority

The Office of Professional Responsibility (OPR) announces recent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and appraisers. These individuals are subject to the regulations governing practice before the Internal Revenue Service (IRS), which are set out in Title 31, Code of Federal Regulations, Part 10, and which are published in pamphlet form as Treasury Department Circular No. 230. The regulations prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for violating the regulations.

The disciplinary sanctions to be imposed for violation of the regulations are:

Disbarred from practice before the IRS —An individual who is disbarred is not eligible to represent taxpayers before the IRS.

Suspended from practice before the IRS —An individual who is suspended is not eligible to represent taxpayers before the IRS during the term of the suspension.

Censured in practice before the IRS —Censure is a public reprimand. Unlike disbarment or suspension, censure does not affect an individual’s eligibility

to represent taxpayers before the IRS, but OPR may subject the individual’s future representations to conditions designed to promote high standards of conduct.

Monetary penalty —A monetary penalty may be imposed on an individual who engages in conduct subject to sanction or on an employer, firm, or entity if the individual was acting on its behalf and if it knew, or reasonably should have known, of the individual’s conduct.

Disqualification of appraiser —An appraiser who is disqualified is barred from presenting evidence or testimony in any administrative proceeding before the Department of the Treasury or the IRS.

Under the regulations, attorneys, certified public accountants, enrolled agents, enrolled actuaries, and enrolled retirement plan agents may not assist, or accept assistance from, individuals who are suspended or disbarred with respect to matters constituting practice ( i.e ., representation) before the IRS, and they may not aid or abet suspended or disbarred individuals to practice before the IRS.

Disciplinary sanctions are described in these terms:

Disbarred by decision after hearing, Suspended by decision after hearing,

August 16, 2010 261 2010–33 I.R.B.

has settled a disciplinary case by signing OPR’s “consent to sanction” form, which requires consenting individuals to admit to one or more violations of the regulations and to consent to the disclosure of the individual’s own return information related to the admitted violations (for example, failure to file Federal income tax returns); or (3) OPR has issued a decision in an expedited proceeding for suspension.

Announcements of disciplinary sanctions appear in the Internal Revenue Bulletin at the earliest practicable date. The sanctions announced below are alphabetized first by the names of states and second by the last names of individuals. Unless otherwise indicated, section numbers ( e.g ., §10.51) refer to the regulations.

issued a decision imposing one of these sanctions.

Disbarred by consent, Suspended by consent, Censured by consent, Mone- tary penalty imposed by consent, and Disqualified by consent —In lieu of a disciplinary proceeding being instituted or continued, an individual offered a consent to one of these sanctions and OPR accepted the offer. Typically, an offer of consent will provide for: suspension for an indefinite term; conditions that the individual must observe during the suspension; and the individual’s opportunity, after a stated number of months, to file with OPR a petition for reinstatement affirming compliance with the terms of the consent and affirming current eligibility to practice ( i.e ., an active professional license or active enrollment status). An

enrolled agent or an enrolled retirement plan agent may also offer to resign in order to avoid a disciplinary proceeding.

Suspended by decision in expedited proceeding, Suspended by default de- cision in expedited proceeding, Sus- pended by consent in expedited pro- ceeding —OPR instituted an expedited proceeding for suspension (based on certain limited grounds, including loss of a professional license and criminal convictions).

OPR has authority to disclose the grounds for disciplinary sanctions in these situations: (1) an ALJ or the Secretary’s delegate on appeal has issued a decision on or after September 26, 2007, which was the effective date of amendments to the regulations that permit making such decisions publicly available; (2) the individual

City & State Name Professional Disciplinary Sanction Effective Date(s) Designation

Alabama

Decatur Hall, III, Garland C. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment)

Arizona

Mesa Goodmansen, Allen P. CPA Suspended by default decision in expedited proceeding under §10.82 (suspension of CPA license)

California

San Bernardino Collins, Richard S. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license)

Carson Staten, Jacqueline. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license)

Indefinite from June 18, 2010

Indefinite from June 7, 2010

2010–33 I.R.B. 262 August 16, 2010

City & State Name Professional Disciplinary Sanction Effective Date(s) Designation

Florida

Marianna Johnston, Evelyn Enrolled Agent Suspended by decision in expedited proceeding under §10.82 (preliminarily enjoined by U.S. district court from preparing any federal tax returns related to claims for original issue discount (OID) income, withholding, or refund claims, providing advice or services of any kind pertaining to claims for OID income, withholding, or refund claims; from ignoring the implications of questionable or suspicious information provided by customers as prohibited by Treas. Reg. 1.6694–1(e), Circular 230, and 26 U.S.C. 6694(a); and from other tax-related activities)

Illinois

Moline Koenig, Phillip E. Attorney Suspended by decision on appeal for violation of § 10.51 (failure to file individual income tax returns for five years and failure to pay/timely pay individual income taxes for five years)

Iowa

Bettendorf Simmons, Neil A. Enrolled Agent Censured by consent for admitted violations of § 10.51 (failure to pay sufficient estimated taxes on his self-employment for seven years)

Indefinite from June 23, 2010

Indefinite from May 26, 2010, but at least 48 months

June 21, 2010

August 16, 2010 263 2010–33 I.R.B.

City & State Name Professional Disciplinary Sanction Effective Date(s) Designation

Kansas

Garden City McCall, Michael W. Attorney Suspended by consent for admitted violations of § 10.22 (1994) (in that practitioner did not exercise due diligence in regard to a municipal finance bond transaction where purported Federal tax-exempt interest on the issued bonds was later determined by the IRS to be not exempt from Federal taxation); and § 10.51(j) (1994)/10.51(a)(13) (2008) (in that practitioner rendered written advice including false opinions, knowingly, recklessly, or through gross negligence in regard to a municipal finance bond transaction where purported Federal tax-exempt interest on the issued bonds was later determined by the IRS to be not exempt from Federal taxation)

Indefinite from May 10, 2010

Arkansas City Parman, Jon P. CPA Reinstated July 27, 2009

Louisiana

Lake Charles Judice, Gregory V. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment)

Massachusetts

South Deerfield Pepyne, Jr., Edward W. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment)

Needham Spector, David L. Attorney Suspended by decision in expedited proceeding under §10.82 (attorney disbarment)

Indefinite from June 10, 2010

2010–33 I.R.B. 264 August 16, 2010

City & State Name Professional Disciplinary Sanction Effective Date(s) Designation

Mississippi

Richton Hinton, Angelia P. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license in Oklahoma)

Nebraska

Gothenburg Raymond, Robert C. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license)

New Jersey

Elizabeth Fishman, Mitchell E. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment)

Cliffside Park Gold, Mark E. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment)

New York

Hempstead Hibner, John R. Attorney Suspended by decision in expedited proceeding under §10.82 (suspension of attorney license)

Copiague McCarthy, Christopher P.

Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment)

Indefinite from June 21, 2010

Indefinite from June 10, 2010

Indefinite from June 7, 2010

Indefinite from June 10, 2010

Indefinite from July 18, 2008 (erroneously listed as July 18, 2009, in IRB 2009–42)

Huntington Station Whittlesey, JoAnn C. CPA Disbarred by decision on appeal for violation of § 10.51 (willful failure to timely file five Federal individual income tax returns)

August 16, 2010 265 2010–33 I.R.B.

City & State Name Professional Disciplinary Sanction Effective Date(s) Designation

Ohio

Columbus McCord, Michael Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license)

Wickliffe Prince, Paul W. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license)

Canton Schiller, Glenn M. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license)

Oklahoma

Bartlesville Shambles, Joey M. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license)

Hinton, Angelia P., See Mississippi

Tennessee

Memphis Hoots, James M. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license)

Texas

Austin Derkunt, Mustafa E. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license)

Indefinite from June 21, 2010

2010–33 I.R.B. 266 August 16, 2010