Monday, May 05, 2008




Long time Colorado attorney Declan Joseph O’Donnell reports that his clients’ $30 million judgment against the IRS doubled in value to $60 million (+++) on May 1, 2008. Judge Beghe of the U.S. Tax Court filed the Court’s long awaited decision. It solidified a broader base of beneficiary-clients and detailed the enormous fraud on that Court more precisely. Clients are air line pilot investors in the Kersting Project.

Robert Alan Jones, a well-known Colorado tax attorney with principal offices in Las Vegas, Nevada, and Mr. O’Donnell’s associate, labeled this cogent 137-page decision as “seminal, sensational, and unprecedented.” The IRS lawyers and participating personnel were undressed in public, so to speak, by their own fraud on the Court, on the lead cases, (known as the Dixon group of cases with Messers Hartman, Lewis, and Liu leading this supplemental challenge), and fraud on all eighteen hundred taxpayers who relied on this lead case as honestly tried by IRS attorneys.

Mr. Jones and Mr. O’Donnell as lead counsel on this Hartman and Lewis T.C. Memo. 2008-124, (May1, 2008) teamed up to turn the tide for their clients and five hundred of Kersting investor-petitioners who previously settled and paid the full deficiencies to the IRS. They were excluded from the previous $30 million judgment registered in 2005 and reported nationally. The IRS claimed the fraud on the Court was procedural only and these investors should have known better when they settled, so they should have released or waived participation in these refund proceedings.

The U.S. Tax Court sided with the fully settled investors. The fraud on the Court of bribing witnesses with lucrative settlements before they testified, failing to advise the U.S. Tax Court of the settlements, and, believe it or not, subsequently attempting to hide the ball institutionally was deemed a structural defect that destroyed confidence in the court system, broke every rule in the book, and embarrassed the IRS and thousands of its dedicated honest workers.

Attorney Joe Alfred Izen of Houston, Texas, the lead counsel in earlier test case and appeals proceedings participated with O’Donnell and Jones in remand proceedings for the group of thirteen hundred (1300) investors. This specific May 1, 2008, decision to O’Donnell and Jones for their clients focused on previously excluded investors who had settled before the “fraud on the court” was recognized by the the Ninth Circuit in its landmark decision in 2003, Dixon V, .

Until this current decision, the IRS has refused to deal with settled investors who were also cheated by the IRS counsel fraud claiming finality of the settlements. by tax court rule. Kudoos are not only in order for Mr. Jones and Mr. O’Donnell. Our hats go off to United States Tax Court Judge Renato Beghe whose logic and wisdom is clear to all who read his opinion, but most importantly he has struck a devastating blow in favor of judicial integrity and protecting our court system and taxpayers from IRS abuse.

All objections by the IRS evaporated under Judge Beghe’s chronoligy, logic, and detail. Mr. Jones and Mr. O’Donnell are finally satisfied that this 19 year court struggle against overwhelming superior government resources is nearly over. The IRS was most recently represented by Mr. Henry O’Neill, trial attorney, Honolulu, Hawaii, IRS Regional Counsel’s Office. Mr. O’Neill does not comment on these cases.

Declan J. O'Donnell, Esq.
Declan Joseph O’Donnell
777 Fifth Street
Castle Rock, Colorado 80104
Telephone: 303-688-1193

Robert Alan Jones, Esq.
R.A.J., Ltd. 1061 E. Flamingo Rd. #7
Las Vegas, Nevada 89119
Telephone: 702-791-3405



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