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Case: Court Determines Amount in Penalty Assessment for Orchestration of Fraudulent Timeshare Scheme (D. Mont.) (IRC §6700)

Nov. 8, 2019, 2:36 PM

Motion for summary judgment granted for government in penalty assessment amount regarding Taxpayer’s involvement in fraudulent timeshare scheme, a district court held. In a previous summary judgment order, the court found that Taxpayer was liable for penalties under tax code Section 6700, but did not determine an amount. The court held that the “activity” giving rise to the penalty encompassed the entire fraudulent arrangement, which was facilitated and organized by Taxpayer to solicit timeshare donations, appraise the timeshares, and direct the profits to other organizations owned by Taxpayer. The penalty assessment doesn’t focus on the conduct of performing...

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