Monday, October 14, 2013
In Vandenheede v. Vecchio, Mary C. Vandenheede sued for alleged tax fraud under 26 U.S.C. § 7434. The U.S. District Court for the Eastern District of Michigan granted Defendants’ motion for summary judgment, finding that violations of § 7434(a) fall on the “filer,” not on every person involved in the return’s preparation.
The U.S. Court of Appeals for the Sixth Circuit affirmed, finding Vandenheede failed to provide particularized facts showing Defendants knowingly issued false returns and failed to suggest different or preferable ways Defendants should’ve categorized payements.
See Steve Dawson & Tiffany McKenzie, Federal Appellate Court Affirms Dismissal of Widow’s Action for Damages Against Trustees for Filing Fraudulent Information Return, Bryan Cave Fiduciary Litigation, Oct. 10, 2013.