Internal Revenue Bulletin:  2010-33 

August 16, 2010 

Announcement of Disciplinary Sanctions From the Office of Professional Responsibility


Table of Contents

The Office of Professional Responsibility (OPR) announces recent disciplinary sanctions involving attorneys, certified public accountants, enrolled agents, enrolled actuaries, enrolled retirement plan agents, and appraisers. These individuals are subject to the regulations governing practice before the Internal Revenue Service (IRS), which are set out in Title 31, Code of Federal Regulations, Part 10, and which are published in pamphlet form as Treasury Department Circular No. 230. The regulations prescribe the duties and restrictions relating to such practice and prescribe the disciplinary sanctions for violating the regulations.

The disciplinary sanctions to be imposed for violation of the regulations are:

Disbarred from practice before the IRS—An individual who is disbarred is not eligible to represent taxpayers before the IRS.

Suspended from practice before the IRS—An individual who is suspended is not eligible to represent taxpayers before the IRS during the term of the suspension.

Censured in practice before the IRS—Censure is a public reprimand. Unlike disbarment or suspension, censure does not affect an individual’s eligibility to represent taxpayers before the IRS, but OPR may subject the individual’s future representations to conditions designed to promote high standards of conduct.

Monetary penalty—A monetary penalty may be imposed on an individual who engages in conduct subject to sanction or on an employer, firm, or entity if the individual was acting on its behalf and if it knew, or reasonably should have known, of the individual’s conduct.

Disqualification of appraiser—An appraiser who is disqualified is barred from presenting evidence or testimony in any administrative proceeding before the Department of the Treasury or the IRS.

Under the regulations, attorneys, certified public accountants, enrolled agents, enrolled actuaries, and enrolled retirement plan agents may not assist, or accept assistance from, individuals who are suspended or disbarred with respect to matters constituting practice (i.e., representation) before the IRS, and they may not aid or abet suspended or disbarred individuals to practice before the IRS.

Disciplinary sanctions are described in these terms:

Disbarred by decision after hearing, Suspended by decision after hearing, Censured by decision after hearing, Monetary penalty imposed after hearing, and Disqualified after hearing—An administrative law judge (ALJ) conducted an evidentiary hearing upon OPR’s complaint alleging violation of the regulations and issued a decision imposing one of these sanctions. After 30 days from the issuance of the decision, in the absence of an appeal, the ALJ’s decision became the final agency decision.

Disbarred by default decision, Suspended by default decision, Censured by default decision, Monetary penalty imposed by default decision, and Disqualified by default decision—An ALJ, after finding that no answer to OPR’s complaint had been filed, granted OPR’s motion for a default judgment and issued a decision imposing one of these sanctions.

Disbarment by decision on appeal, Suspended by decision on appeal, Censured by decision on appeal, Monetary penalty imposed by decision on appeal, and Disqualified by decision on appeal—The decision of the ALJ was appealed to the agency appeal authority, acting as the delegate of the Secretary of the Treasury, and the appeal authority issued a decision imposing one of these sanctions.

Disbarred by consent, Suspended by consent, Censured by consent, Monetary penalty imposed by consent, and Disqualified by consent—In lieu of a disciplinary proceeding being instituted or continued, an individual offered a consent to one of these sanctions and OPR accepted the offer. Typically, an offer of consent will provide for: suspension for an indefinite term; conditions that the individual must observe during the suspension; and the individual’s opportunity, after a stated number of months, to file with OPR a petition for reinstatement affirming compliance with the terms of the consent and affirming current eligibility to practice (i.e., an active professional license or active enrollment status). An enrolled agent or an enrolled retirement plan agent may also offer to resign in order to avoid a disciplinary proceeding.

Suspended by decision in expedited proceeding, Suspended by default decision in expedited proceeding, Suspended by consent in expedited proceeding—OPR instituted an expedited proceeding for suspension (based on certain limited grounds, including loss of a professional license and criminal convictions).

OPR has authority to disclose the grounds for disciplinary sanctions in these situations: (1) an ALJ or the Secretary’s delegate on appeal has issued a decision on or after September 26, 2007, which was the effective date of amendments to the regulations that permit making such decisions publicly available; (2) the individual has settled a disciplinary case by signing OPR’s “consent to sanction” form, which requires consenting individuals to admit to one or more violations of the regulations and to consent to the disclosure of the individual’s own return information related to the admitted violations (for example, failure to file Federal income tax returns); or (3) OPR has issued a decision in an expedited proceeding for suspension.

Announcements of disciplinary sanctions appear in the Internal Revenue Bulletin at the earliest practicable date. The sanctions announced below are alphabetized first by the names of states and second by the last names of individuals. Unless otherwise indicated, section numbers (e.g., §10.51) refer to the regulations.

City and State Name Professional Designation Disciplinary Sanction Effective Date(s)
Alabama        
Decatur Hall, III, Garland C. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from June 18, 2010
Arizona        
Mesa Goodmansen, Allen P. CPA Suspended by default decision in expedited proceeding under §10.82 (suspension of CPA license) Indefinite from June 18, 2010
California        
San Bernardino Collins, Richard S. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 7, 2010
Carson Staten, Jacqueline. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 7, 2010
Florida        
Marianna Johnston, Evelyn Enrolled Agent Suspended by decision in expedited proceeding under §10.82 (preliminarily enjoined by U.S. district court from preparing any federal tax returns related to claims for original issue discount (OID) income, withholding, or refund claims, providing advice or services of any kind pertaining to claims for OID income, withholding, or refund claims; from ignoring the implications of questionable or suspicious information provided by customers as prohibited by Treas. Reg. 1.6694–1(e), Circular 230, and 26 U.S.C. 6694(a); and from other tax-related activities) Indefinite from June 23, 2010
Illinois        
Moline Koenig, Phillip E. Attorney Suspended by decision on appeal for violation of § 10.51 (failure to file individual income tax returns for five years and failure to pay/timely pay individual income taxes for five years) Indefinite from May 26, 2010, but at least 48 months
Iowa        
Bettendorf Simmons, Neil A. Enrolled Agent Censured by consent for admitted violations of § 10.51 (failure to pay sufficient estimated taxes on his self-employment for seven years) June 21, 2010
Kansas        
Garden City McCall, Michael W. Attorney Suspended by consent for admitted violations of § 10.22 (1994) (in that practitioner did not exercise due diligence in regard to a municipal finance bond transaction where purported Federal tax-exempt interest on the issued bonds was later determined by the IRS to be not exempt from Federal taxation); and § 10.51(j) (1994)/10.51(a)(13) (2008) (in that practitioner rendered written advice including false opinions, knowingly, recklessly, or through gross negligence in regard to a municipal finance bond transaction where purported Federal tax-exempt interest on the issued bonds was later determined by the IRS to be not exempt from Federal taxation) Indefinite from May 10, 2010
Arkansas City Parman, Jon P. CPA   Reinstated July 27, 2009
Louisiana        
Lake Charles Judice, Gregory V. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from June 10, 2010
Massachusetts        
South Deerfield Pepyne, Jr., Edward W. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from June 10, 2010
Needham Spector, David L. Attorney Suspended by decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from June 10, 2010
Mississippi        
Richton Hinton, Angelia P. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license in Oklahoma) Indefinite from June 21, 2010
Nebraska        
Gothenburg Raymond, Robert C. CPA Suspended by default decision in expedited proceeding under § 10.82 (revocation of CPA license) Indefinite from June 10, 2010
New Jersey        
Elizabeth Fishman, Mitchell E. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from June 10, 2010
Cliffside Park Gold, Mark E. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from June 10, 2010
New York        
Hempstead Hibner, John R. Attorney Suspended by decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 7, 2010
Copiague McCarthy, Christopher P. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from June 10, 2010
Huntington Station Whittlesey, JoAnn C. CPA Disbarred by decision on appeal for violation of § 10.51 (willful failure to timely file five Federal individual income tax returns) Indefinite from July 18, 2008 (erroneously listed as July 18, 2009, in IRB 2009–42)
Ohio        
Columbus McCord, Michael Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 21, 2010
Wickliffe Prince, Paul W. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from June 21, 2010
Canton Schiller, Glenn M. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 21, 2010
Oklahoma        
Bartlesville Shambles, Joey M. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from June 21, 2010
  Hinton, Angelia P., See Mississippi      
Tennessee        
Memphis Hoots, James M. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 21, 2010
Texas        
Austin Derkunt, Mustafa E. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 21, 2010

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