Jury Acquittal Didn’t Mean Cost Recovery
Though the jury released Gonzalez from liability and freed her from $1.7 million in liens, Judge Wicks stressed that the IRS’ failed case did not equate to an improper one. Because the government’s claims were not frivolous, Gonzalez was not considered a “prevailing party” eligible for reimbursement.
Gonzalez had argued that the IRS unfairly sought to make her personally liable for what eventually grew to nearly $2 million in tax debt tied to her husband, Boris Gonzalez. But the court concluded the agency’s pursuit was legally defensible.
Counsel and Next Steps
Martha Gonzalez was represented by Jeffrey I. Carton and Craig Matthew Cepler of Denlea & Carton LLP. The government was represented by Julia Glen of the U.S. Department of Justice’s Tax Division. Neither side immediately commented on the ruling.
