Attorney John P. McDonnell Files Complaint in IRS ‘Notice of Deficiency’ Case

Share Article

Silicon Valley attorney John P. McDonnell files complaint in alleged intentional deprivation of Constitutional rights case regarding an IRS “Notice of Deficiency.”

John P. McDonnell

Attorney John P. McDonnell, founder of The Law Offices of John P. McDonnell, recently filed a complaint on behalf of a client (plaintiff) in an alleged intentional deprivation of Constitutional rights case (Case No. 5:16-cv-05551-LHK filed in the District Court, Northern District of California). This action, according to court documents, stems from an allegedly intentionally false “Notice of Deficiency” issued in April 2013 under 26 U.S.C. §6212 by the Commissioner of the Internal Revenue Service.

Court documents further state that the plaintiff alleges that the Commissioner and his agents issued the “Notice of Deficiency” with fabricated numbers in order to assert exorbitant tax and penalty claims that would effectively deprive the plaintiff of the ability to obtain a jury trial to dispute the case. According to court documents, when the IRS issues a “Notice of Deficiency” and proposes to assess additional taxes against an individual, that individual has two basic options: pay the proposed taxes and file a refund claim in United States District Court, where the individual will have a right to a jury trial; or, if the individual cannot afford to pay the taxes, then their only option is to seek a redetermination in the Tax Court, where the individual will have no right to a jury trial.

According to the complaint, the IRS audit in this case would have allegedly resulted in “increased income” (from additions to income or disallowance of deductions) of about $346,000. However, the complaint alleges this was not the number the IRS officially proposed five months later, which was over $1.9 million (an increase of $1.6 million). The complaint further alleges that the IRS provided no explanation for the $1.6 million of increased income, and that this extra $1.6 million resulted in over $700,000 of taxes and penalties that were improper.

About John P. McDonnell, The Law Offices of John P. McDonnell
Attorney John P. McDonnell is admitted to practice in the State and Federal Courts of California, as well as in the Tax Court and Supreme Court of the United States. He has been a contributing member of the Tax Section of the American Bar Association since 1979. The Law Offices of John P. McDonnell is dedicated to offering skilled representation to individuals and businesses, with a focus on tax advice and tax litigation. For more information, call (650) 991-9909, or visit The law office is located at 40 Main Street, Los Altos, CA 94022.

About the NALA™
The NALA offers small and medium-sized businesses effective ways to reach customers through new media. As a single-agency source, the NALA helps businesses flourish in their local community. The NALA’s mission is to promote a business’ relevant and newsworthy events and achievements, both online and through traditional media. For media inquiries, please call 805.650.6121, ext. 361.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

since: 05/2010
Follow >