The sponsor of so-called sovereign tribal tax credits never responded to a $1.7 million lawsuit, leading a Florida court to enter a default judgment Monday.
Justin and Robin Daniels of Jupiter, Fla., sued the credits’ sponsor White River Energy Corp., along with a wealth advisory firm that helped market the credits and their own accounting firm in the Florida Circuit Court for Palm Beach County in May.
The case appears to be the first over the credits, which the IRS and the Treasury Department have said don’t exist. Although White River has denied any wrongdoing, it didn’t serve or file any pleadings or documents with the court, according to the default.
Bloomberg Tax first reported on the existence of the purported tribal tax credits in December 2024.
The Danielses alleged that they paid $1.62 million to buy credits they were assured were legitimate, until the IRS rejected their 2023 tax return and assessed $149,000 in penalties.
Greenspoon Marder LLP represented the couple.
The case is Daniels v. Armanino Advisory LLC, Fla. Cir. Ct., No. 50-2025-CA-005340, deault 7/28/25.
To contact the reporter on this story:
To contact the editor responsible for this story:
Learn more about Bloomberg Tax or Log In to keep reading:
Learn About Bloomberg Tax
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools.