Internal Revenue Bulletin:  2012-49 

December 3, 2012 

Announcement 2012-47

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        
Phoenix Everett, James J. Attorney Disbarred by ALJ for violation of §10.51 (conviction under 18 U.S.C. §157 (bankruptcy fraud); §152 (3) (false declaration); §1956 (money laundering/concealment)) August 21, 2010
Arkansas        
Proctor Donaldson, Bryan D. Attorney 48 month suspension by ALJ for violation of §10.51 (failed to file Federal individual income tax returns for tax years 2003 and 2004; failed to timely file Federal individual income tax returns for tax years 2001 and 2002; failed to timely pay tax liabilities for tax years 2001 and 2002) From August 23, 2009 until reinstated by Director, OPR
California        
  Carlsbad Anson, Ronald I. CPA Suspended by default decision in expedited proceeding under §10.82 (conviction under 18 U.S.C. §371, conspiracy) From November 19, 2010 until reinstated by Director, OPR
La Mesa Finch, Mark D. CPA Disbarred by ALJ for violation of §10.51 (giving false or misleading information to the Department of the Treasury; failure to timely file Federal individual income tax returns for tax years 2006 and 2007) May 2, 2010
Poway Reed, Michael J. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) From November 19, 2010 until reinstated by Director, OPR
Colorado        
Denver Levine, Alan L. CPA Public censure for admitted violation of §10.51 (failed to file Federal individual income tax returns for tax years 2001, 2002, 2003, 2004 and 2005) August 11, 2009
Florida        
Panama City Weeks, George K. Attorney Suspended by default decision in expedited proceeding under §10.82 (conviction under 26 U.S.C. §7206(1), filing false Federal income tax returns) From June 18, 2012, until reinstated by Director, OPR
Georgia        
Dawson Craft, C. Wesley CPA Suspended, on appeal, by Appellate Authority for violation of §10.51 (failed to timely file Federal income tax returns, and timely pay Federal tax liabilities for tax years 2001, 2002, 2003, 2004, 2005, 2006, and 2007) From October 12, 2011 until reinstated by Director, OPR
Georgia (Continued)        
Tifton Walker-Lanier, Betty Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) From March 25, 2011 until reinstated by Director, OPR
Illinois        
Chicago Horwich, Arnold S. CPA Public censure for admitted violation of §10.22 (diligence as to accuracy) June 17, 2011
Kansas        
Prairie Village Barr, James E. CPA 40 month suspension imposed by Appellate Authority (failure to timely file a Federal income tax return for tax years 2001, 2002, 2003, and 2004; and failure to file a Federal income tax return for tax years 2005 and 2006) From July 16, 2011 until reinstated by Director, OPR
Maryland        
Bethesda Fox, David E. Attorney Suspended by default decision in expedited proceeding under §10.82 (attorney disbarment) June 7, 2011
Massachusetts        
Scituate Sullivan, Brian B. Attorney Suspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) From March 25, 2011 until reinstated by Director, OPR
Michigan        
Ann Arbor Lee, Lily Y. Enrolled Agent 36 month suspension by Appellate Authority (failure to timely file a Federal income tax return for tax years 2004 and 2005; and failure to file a Federal income tax return for tax years 2006 and 2007) From June 13, 2011 until reinstated by Director, OPR
Minnesota        
Plymouth Volstad, Paul S. CPA Enrolled Agent Suspended for breach of Offer of Consent to Public Censure, which required timely filing of all required tax returns From August 10, 2011 until reinstated by Director, OPR
Missouri        
Cassville Divers, Robert D. Enrolled Agent Public censure for admitted violation of §10.22 (diligence as to accuracy) August 3, 2009
Nevada        
Las Vegas Moore, Michael J. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) June 9, 2011
North Carolina        
Charlotte Ross, Walter H. CPA Suspended by ALJ for violation of §10.51 (suspension of CPA license) From July 7, 2011 until reinstated by Director, OPR
Ohio        
Columbiana Kaufman, Gregory B. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) From November 14, 2011 until reinstated by Director, OPR
Columbus Smith, Patrick E. CPA Suspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) From July 6, 2011 until reinstated by Director, OPR
Oregon        
Grants Pass Cronin, Valerie Enrolled Agent Disbarred by ALJ for violation of §10.51 (failure to timely file Federal individual income tax returns for tax years 2001 and 2002, and failure to file individual income tax returns for years 2004, 2005, 2006 and 2007) From September 16, 2010 until reinstated by Director, OPR
Pennsylvania        
Philadelphia Maslo, William R. CPA Consent suspension for admitted violation of §10.51 (failure to timely file and pay Federal income and employment taxes) From April 16, 2009 until reinstated by Director, OPR
Tennessee        
Knoxville Gee Jr., Edgar H. CPA Disbarment by ALJ upheld on appeal for violation of §10.51 (failure to pay Federal income taxes for tax years 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004 and 2005) Indefinite from August 8, 2011, but not less than 5 years
Memphis Siegfried, Russell A. CPA 48 month consent suspension for admitted violation of §10.51 (failure to file a Federal income tax return for tax years 2001, 2002, 2003, 2004, 2005 and 2006, and failure to file Form 941, Employer’s Quarterly Federal Tax Return, beginning December 2002 to December 2006) From April 23, 2009 until reinstated by Director, OPR
Texas        
Denton Graves, John P. CPA Consent suspension for admitted violation of §10.51 (failure to timely file and pay taxes) From April 28, 2009 until reinstated by Director, OPR
Virginia        
Norfolk Coston, Dwayne H. CPA Disbarment by ALJ upheld on appeal for violation of §10.51 (failure to timely file a Federal income tax return for tax year 2005; and failure to file a Federal income tax return for tax years 2007, 2008 and 2009) Indefinite from October 14, 2011, but not less than 5 years
West Virginia        
Beaver Reusing Jr., Matthew J. Attorney Suspended by default decision in expedited proceeding under §10.82 (conviction under 26 U.S.C. §7206(2), assisting in false tax returns and conviction under 26 U.S.C. §7203, failure to file tax returns) From June 9, 2011 until reinstated by Director, OPR
Wisconsin        
Milwaukee Purnell, Jeffrey W. Attorney Disbarred by ALJ for violation of §10.51 (failure to timely file individual Federal income tax returns for tax years 2002, 2003, 2004, 2005, 2006, 2007 and 2008) Indefinite from October 4, 2010, but not less than 5 years

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