Disbarred Attorney Not Required to Produce Docs for IRS – Los Angeles Income Tax Planning & Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on November 11, 2014

On October 30, Judge Richard F. Boulware II of the US District Court for the District of Nevada granted an injunction against the director of the Internal Revenue Service (IRS) Office of Professional Responsibility, Karen Hawkins, barring her from suspending or curtailing a disbarred attorney’s ability to electronically file tax returns on behalf of his employer’s clients. Judge Boulware also ordered that James C. Sexton Jr. and his employer, Esquire Group LLC, are not required to produce documents or respond to inquiries regarding the IRS investigation of Sexton or Esquire.

In May of 2013, Sexton and Esquire filed a complaint requesting a declaratory judgement that (i) Sexton is not a practitioner, and therefore Hawkins and the IRS lack authority over him, and (ii) the IRS is prohibited from regulating tax advice generally except as provided in 31 USC Section 330. Sexton and Esquire further requested a permanent injunction prohibiting the IRS from enforcing Section 10.20 of Circular 230 against them, and requiring them to provide documents and information upon demand.

According to Judge Boulware, Sexton and Esquire pleaded sufficient facts to raise controversies and questions regarding whether or not Sexton remained subject to the IR’s jurisdiction.

Notably, Sexton and Esquire attempted only to enjoin the IRS’s demand for documents, not the investigation, itself. Judge Boulware noted that the injunction did not prevent the IRS from attempting to subpoena the documents or filing a civil lawsuit in federal court.

Sexton pleaded guilty in 2005 to 4 counts of mail fraud and 1 count of conspiracy to launder money for his involvement in a bogus foreign investment scheme. For his cooperation against other defendants, Sexton’s sentence was reduced to 5 years probation and he has since worked at Esquire.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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