Property Seller Gets $7 Million Judgment Over Bad Tax Advice

The seller of a piece of real property in Memphis, Tenn., received a $7 million default judgment against defendants including a real estate broker that allegedly gave bad tax advice that caused an IRS liability.

Judge Sheryl H. Lipman of the US District Court for the Western District of Tennessee on Sept. 10 set the award in favor of the plaintiff, American Properties Co., after entering an initial determination of default in 2023 following the defendants’ failure to participate in the litigation. The resolution of the case had been halted for a time while American Properties appealed its tax determination ...