Internal Revenue Bulletin:  2012-7 

February 13, 2012 

Announcement 2012-8

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)
Arizona        
Fountain Hills Heck, Donald O. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from November 8, 2011
California        
W. Hollywood Curcio, Gregory Attorney Suspended for breach of Deferred Disciplinary Agreement, which required timely filing of all required tax returns Indefinite from August 30, 2011 but not less than 48 months
Mountain View George, Robert D. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from November 8, 2011
N. Hollywood Glicker, Brian I. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from November 8, 2011
Granada Hills Hoover, Steven G. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from November 8, 2011
Newark Replogle, David K. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from November 8, 2011
Idaho        
Boise Sandifer, Martha CPA Suspended by consent for admitted violation of §10.51 (failure to file Federal individual income tax return for tax years 2005, 2006, 2007, and 2008, failure to timely file U.S. Income Tax Returns for an S Corporation for tax years 2005, 2006, 2007 and 2008, failure to timely file a Quarterly Federal Employment Tax Returns for tax quarter 2005–09, and failure to timely pay employment tax balances for that quarter) and violation of §10.20 (failure to respond to OPR’s proper and lawful requests for information) Indefinite from October 25, 2011 but not less than 48 months
Illinois        
Sugar Grove Moscarello, Catherine A. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from November 8, 2011
Iowa        
Clive Musin, Howard A. Enrolled Agent Suspended by decision in expedited proceeding under §10.82 (enjoined from acting as a tax preparer) Indefinite from November 8, 2011
Ohio        
Columbiana Kauffman, George B. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from November 14, 2011
Blacklick Leither, Leon N. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from November 14, 2011
Columbus Merrelli, Joseph J. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from November 14, 2011
Trenton Moon, Bryan M. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from November 14, 2011
Chardon Navatsyk, Donald A. Attorney Disbarred by ALJ decision for violation of 10.20 (failure to provide information requested by OPR) and 10.51 (submission or false or misleading information to OPR; failure to file income tax returns and pay the underlying taxes due thereon for five consecutive years) Indefinite from November 5, 2010
Dayton Quatman, John J. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from November 14, 2011
  Rossi, Philip D., See West Virginia      
Avon Smith, Joseph H. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from October 11, 2011
Texas        
San Antonio Arocha, Robert T. CPA Suspended by decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from October 11, 2011
Dallas Bragg, Jeffrey M. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from October 11, 2011
New Braunfels Clark, Mark A. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from October 11, 2011
Longview Gardner, William J. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from October 11, 2011
San Antonio Goains, Michael D. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from October 11, 2011
Houston Murff, David L. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from October 11, 2011
Fort Worth Smith, Donald T. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from November 14, 2011
Washington        
Richland Preszler, Terry J. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from November 14, 2011
WestVirginia        
Beaver Rossi, Philip D. Public Accountant Suspended by default decision in expedited proceeding under §10.82 (conviction under 18 U.S.C. §1341, mail fraud; revocation of public accountant registration in Ohio) Indefinite from November 14, 2011

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