Alexandre Balkanski Trading Partner, LP et al v. United States Of America

Filing 26

ORDER granting extension and continuing cmc to 6/12/09 @ 2:30 p.m.. Signed by Judge Illston on 3/12/09. (ts, COURT STAFF) (Filed on 3/13/2009)

Case 3:08-cv-02494-SI

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Filed 03/12/2009

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JOSEPH P. RUSSONIELLO United States Attorney THOMAS MOORE Assistant United States Attorney Chief, Tax Division DAVID L. DENIER Assistant United States Attorney 10th Floor Federal Building 450 Golden Gate Avenue, Box 36055 San Francisco, California 94102 Telephone: [phone] Fax: [phone] W. CARL HANKLA (DCBN 41165) Trial Attorney, Tax Division United States Department of Justice P.O. Box 683, Ben Franklin Station Washington, D.C. 20044 Telephone: [phone] Fax: [phone] E-mail: [e-mail] IN THE UNITED STATES DISTRICT COURT FOR THE

12 NORTHERN DISTRICT OF CALIFORNIA 13 SAN FRANCISCO DIVISION 14 15 16 17 18 19 20 21 The parties hereby provide this status report and stipulate pursuant to Local Rule 6-1(a), that, 22 because the parties have made significant progress in their ongoing attempt to settle this matter, (1) the 23 defendant should have an additional extension of time, from March 16, 2009 to May 15, 2009, in which 24 25 26 management statement due a week before the conference. 27 28
S T I P U L A T I O N FOR EXTENSION OF TIME

ALEXANDRE BALKANSKI TRADING PARTNER, LO; AAB & SB, LLC, Tax Matters Partner; ALEXANDRE BALKANSKI, Sole Member-Manager, Plaintiffs, v. UNITED STATES OF AMERICA, Defendant.

) ) ) ) ) CV 08-002494 SI ) ) ) )JOINT STATUS REPORT AND STIPULATION )FOR EXTENSION OF TIME TO ANSWER AND )FOR CONTINUANCE OF CASE MANAGEMENT )CONFERENCE )

to answer or otherwise respond to the complaint, and (2) the case management conference, currently @ 2:30 p.m. scheduled for April 10, 2009, should be continued to June 12, 2009 or later, with the joint case

No. CV-08-002494 SI

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Case 3:08-cv-02494-SI

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Filed 03/12/2009

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The parties respectfully represent they have good cause for making this request as described

1.

This case is complex federal tax proceeding. It arises from the Internal Revenue Service's proposed disallowance of millions of dollars of losses the plaintiff partnership claimed on federal tax returns by means of an allegedly abusive tax shelter. See IRS Notice 2002-35 (identifying "notional principal contract" shelters and warning that "the tax benefits purportedly generated by these transactions are not allowable for federal income tax purposes"). The plaintiffs contend that the positions taken on the tax returns were correct.

2.

Since January 5, 2009, when the parties filed their last stipulation for an extension of time, they have made significant progress toward a settlement.

3.

On January 20, 2009, the plaintiffs made a formal settlement offer based on terms similar to those on which other cases involving this type of tax shelter have been settled.

4.

The Tax Division of the Department of Justice is in the process of reviewing and acting on the offer on behalf of the Attorney General pursuant to Part O, Subpart N of Title 28 of the Code of Federal Regulations. Since January 5, 2009, when the offer was submitted, (1) the trial attorney has obtained the favorable views of the IRS, (2) the trial attorney has recommended to his section chief that the offer be accepted, (3) the section chief has recommended to the Office of Review that the offer be accepted, and (4) the Office of Review is reviewing the offer and will either take final action or will make a further referral to the government official(s) having authority to take final action.

S T I P U L A T I O N FOR EXTENSION OF TIME

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Case 3:08-cv-02494-SI

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Filed 03/12/2009

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5.

Postponement of the answer due date and case management conference date while the settlement process continues would be in the interest of judicial economy.

DATED this 12th day of March, 2009. JOSEPH P. RUSSONIELLO United States Attorney THOMAS MOORE Assistant United States Attorney Chief, Tax Division DAVID L. DENIER Assistant United States Attorney 10th Floor Federal Building 450 Golden Gate Avenue, Box 36055 San Francisco, California 94102 Telephone: [phone] Fax: [phone] /s/ W. Carl Hankla W. CARL HANKLA Trial Attorney, Tax Division United States Department of Justice P.O. Box 683, Ben Franklin Station Washington, D.C. 20044 Telephone: [phone] Fax: [phone] E-mail: [e-mail] DATED this 12th day of March, 2009. ALEXANDRE BALKANSKI TRADING PARTNER, LP; AAB & SB. LLC., Tax Matters Partner, ALEXANDRE BALKANSKI, Sole Member-Manager /s/ Edward M. Robbins, Jr. EDWARD M. ROBBINS, JR. CHARLES P. RETTIG DAVID ROTH HOCHMAN, SALKIN, RETTIG, TOSCHER & PEREZ, P.C. 9150 Wilshire Boulevard, Suite 300 Beverly Hills, CA 90212 Telephone: [phone] Fax: [phone]

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S T I P U L A T I O N FOR EXTENSION OF TIME

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