Internal Revenue Bulletin:  2011-4 

January 24, 2011 

Announcement 2011-4

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        
Athens McLain V, John H. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from October 14, 2010
Alaska        
Anchorage Shipps, Ra P. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from October 14, 2010
Arkansas        
Forrest City Stilley, Oscar A. Attorney Suspended by decision in expedited proceeding under § 10.82 (conviction under 18 U.S.C. § 371, conspiracy to defraud the United States; 26 U.S.C. § 7201 and 18 U.S.C. § 2, tax evasion and aiding and abetting; suspension of attorney license) Indefinite from September 10, 2010
California        
Oakland Cox, Cynthia L. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from October 14, 2010
Novato Hopkins, Maximilian J.B. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from November 3, 2010
Diamond Bar Kwon, Steve S. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from October 14, 2010
San Rafael Losey, F. Richard Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from October 14, 2010
Los Angeles Roberts IV, Walter J. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from October 14, 2010
Long Beach Williams, Jr., Frank H. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from September 22, 2010
Colorado        
Colorado Springs DeHaven, Steven D. CPA Suspended by default decision in expedited proceeding under §10.82 (surrender of CPA license with effect of revocation) Indefinite from November 3, 2010
Littleton Fried, David M. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from November 3, 2010
Georgia        
Lawrenceville Arizechi, Michael CPA Suspended by default decision in expedited proceeding under § 10.82 (conviction under 26 U.S.C. § 7201 and 18 U.S.C. § 2, income tax evasion) Indefinite from November 5, 2010
Savannah Graham, Michael H. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from November 3, 2010
Atlanta Njie, Saloum CPA Suspended by default decision in expedited proceeding under §10.82 (permanently enjoined by U.S. District Court from preparing, filing, or assisting in the preparation or filing any Federal tax return, providing any tax advice or tax services for compensation, including preparing or filing returns, providing consultative services, or representing customers in connection with any matter before the IRS, engaging in conduct subject to penalty under 26 U.S.C. §§ 6694 or 6695, engaging in any conduct that interferes with the proper administration and enforcement of the internal revenue laws through the preparation or filing false tax returns). Indefinite from November 3, 2010
Illinois        
Palatine Kaiser, Kenneth E. Attorney Censured by consent for admitted violations of § 10.51 (failed to pay and/or timely pay tax balances associated with his personal income tax returns (Form 1040) and three business entities (Form 941) through which he was a financially responsible representative) September 28, 2010
Louisiana        
Lafayette Back, Kenneth A. Attorney Suspended by default decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from September 20, 2010
Maryland        
Potomac Bleecker, Lorin H. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from September 20, 2010
Cambridge Eckel, Grason J. Attorney Suspended by decision in expedited proceeding under § 10.82 (suspension of attorney license) Indefinite from October 29, 2010
Massachusetts        
Brockton Hanserd, Valerie F. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from September 20, 2010
Springfield MacKay, Ellen M. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from September 20, 2010
Wakefield Surette, III, J. Edward Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from November 5, 2010
Minnesota        
St. Louis Park Ward, Thomas R. Attorney   Reinstated to practice before the IRS, effective November 5, 2010
Missouri        
Branson Taylor, David L. Attorney Suspended by default decision in expedited proceeding under § 10.82 (attorney disbarment) Indefinite from November 5, 2010
Montana        
Billings Allen, Cathy B. CPA Suspended by decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from November 3, 2010
Nevada        
Las Vegas Eisenberg, Susan CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from September 20, 2010
New Jersey        
Pompton Plains Thompson, Gary R. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from September 21, 2010
New York        
Putnam Valley Coren, Steven M. Attorney Suspended by decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from September 14, 2010
Syracuse Strunk, Bonnie Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from September 20, 2010
North Carolina        
Raleigh Gaskins, Johnny S. Attorney Suspended by default decision in expedited proceeding under § 10.82 (conviction under 31 U.S.C. § 5324, structuring transactions to evade reporting requirements) Indefinite from November 5, 2010
Raleigh Mixon, A. Amanda — aka Abbott, Allie A. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from October 1, 2010
Pennsylvania        
Lancaster Martin, Spencer R. CPA   Reinstated to practice before the IRS, effective October 1, 2010
Tennessee        
East Ridge Stanbery, Jr., Charles E. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from October 28, 2010
Texas        
Austin Ernstmeyer, Leslie S. CPA/Attorney Suspended by decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from October 14, 2010
Houston Manner, Ronald P. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from October 28, 2010
Fort Worth Parrack, Jeffrey B. CPA Disbarred by consent for violation of §§ 10.51, 10.22, (failed to pay individual federal income tax assessed for 2000, 2001, 2002, 2003, 2007, and 2008; failed to timely file Forms 1040, individual income tax return for 2008 and 2009; failed to exercise due diligence in preparing a client’s 1998, 1999, and 2000 Form 1040, individual income tax return; failed to exercise due diligence in providing tax preparer identifying information on client’s Form 1040, individual income tax return from 1997 through 2003; failed to file accurate Forms 1040, individual income tax returns for 2004, 2005, 2006, and 2007; and failed to pay the correct amount of federal income tax due. Indefinite from July 1, 2010
Sherman Putman, Clinton W. CPA Suspended by decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from October 28, 2010

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