Internal Revenue Bulletin:  2011-47 

November 21, 2011 

Announcement 2011-74

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        
Tuscaloosa Dionne, Donald L. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from August 25, 2011
Arizona        
Sedona Kazragis, Gary W. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from August 25, 2011
California        
Ventura Findley, John W. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from July 22, 2011
Sacramento Ferris, Frank J. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from August 31, 2011
Canoga Park Garrett, Jack E. CPA Suspended by decision in expedited proceeding under §10.82 (conviction under 26 U.S.C. §7206(2), aiding and assisting the preparation of false U.S. tax return) Indefinite from August 22, 2011
Agoura Hills Hasting, Carl D. CPA Suspended by decision in expedited proceeding under §10.82 (suspension of CPA license) Indefinite from September 20, 2011
Oakland Lenz, Stewart W. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from August 31, 2011
Oxnard Mendoza, Ricardo L. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from August 31, 2011
Aurora O’Donnell, Lawrence CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license in Colorado) Indefinite from August 31, 2011
Fort Collins Walker, Scott N. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license in Colorado) Indefinite from August 25, 2011
Colorado        
  O’Donnell, Lawrence, See California      
Denver Pavek, David D. Attorney Suspended by decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from August 4, 2011
  Walker, Scott N., See California      
Denver Zodrow, John J. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from August 4, 2011
Massachusetts        
Lawrence Buck, John K. Attorney Suspended by decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from July 22, 2011
Dorchester Silva, Deanna M. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from September 29, 2011
Michigan        
Davison Cochran, Linda D. Enrolled Agent Suspended by decision in expedited proceeding under §10.82 (conviction under 26 U.S.C. §7206(a), willfully filing a false U.S. tax return) Indefinite from July 28, 2011
Missouri        
Platte City Stover, A. Blair Attorney Suspended by default decision in expedited proceeding under §10.82 (injunction against certain activities regarding tax plans) Indefinite from September 29, 2011
New Jersey        
West Orange Kirnan, Matthew J. Attorney Suspended by decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from July 22, 2011
Bridgewater Tsai, Stephen Attorney Suspended by decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from July 22, 2011
New York        
New York Auslander, Kenneth J. Attorney Suspended by decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from August 10, 2011
Mt. Sinai Buscemi, Lawrence Attorney Suspended by decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from July 22, 2011
  Ellis, Scevia S., See Virginia      
Carmel Leibell III, Vincent L. Attorney Suspended by default decision in expedited proceeding under §10.82 (conviction under 26 U.S.C. §7206(1), subscribing to false and fraudulent U.S. individual income tax returns; and conviction under 18 U.S.C. §1503, obstruction of justice) Indefinite from September 29, 2011
W. Hampton Beach McVann Jr., Thomas T Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from September 29, 2011
Purchase Mangone, Anthony J. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from September 29, 2011
Ohio        
Solon Davis, Scott E. CPA Suspended by default decision in expedited proceeding under §10.82 (conviction under 26 U.S.C. §7206(2), aiding and assisting the preparation of false U.S. income tax returns) Indefinite from August 11, 2011
Oklahoma        
Tulsa Gordon, George D. Attorney Suspended by decision in expedited proceeding under §10.82 (conviction under 18 U.S.C §371, conspiracy; 18 U.S.C §1343 & 2(a), wire fraud, aiding and abetting; 15 U.S.C. §§78j(b), 78ff & 17 C.F.R §240.10b–5, 18 U.S.C. 2(a), securities fraud, aiding and abetting; 18 U.S.C. §§1957(a) & 2(a), money laundering, aiding and abetting; 18 U.S.C. §1001, false statement; 18 U.S.C. § 1512(c)(2), obstruction of justice) Indefinite from August 9, 2011
Texas        
Texarkana Smith, Terry L. CPA Suspended by decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from August 4, 2011
Virginia        
Fairfax Ellis, Scevia S. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment in New York) Indefinite from September 29, 2011
Woodbridge Omozee, Henry O. CPA Suspended by decision in expedited proceeding under §10.82 (conviction under 26 U.S.C. §7206 (1), making and subscribing false tax returns) Indefinite from August 4, 2011
Washington        
Alderwood Manor Mullen, Richard H. CPA Suspended by default decision in expedited proceeding under §10.82 (suspension of CPA license) Indefinite from August 11, 2011
Wisconsin        
Janesville Compton, Stephen M. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from August 11, 2011
Fox Point Goldstein, Harvey J. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from August 11, 2011

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