The couple claims the deficiency notices resulted from errors by the IRS or its computer systems when processing the substitute return. The IRS allegedly refused to correct these errors or acknowledge Jay Balentine’s K-1 schedule’s reported ordinary business income losses. Instead, the IRS recorded only the K-1 distributions, “which greatly alters the resulting tax liability,” the couple said.
Legal Representation
The Balentines are represented by Andrew Jan Mytelka and Angela K. Olalde of Greer Herz & Adams LLP. The government is represented by Paul Andrew Allulis, Nishant Kumar, and Mary Elizabeth Smith of the U.S. Department of Justice, Tax Division.
The U.S. Department of Justice, Tax Division, and the Balentines’ attorney did not respond to requests for comment.
