Mitchell v. United States (In re Mitchell)

AMENDED OPINION ON MOTION FOR RECONSIDERATION

SAMUEL J. STEINER, Chief Judge.

The United States has moved for reconsideration of the Court’s conclusion that under Section 6701 of the Internal Revenue Code the appropriate penalty to be assessed against Mitchell for his involvement in the preparation and/or approval of the false tax return of Cascade Hydro for the year 1985 is $10,000. 109 B.R. 434. The Government maintains that the penalty should be $1,000 per shareholder, that is a total of $34,000.

Cascade Hydro is a Subchapter S corporation. The Government argues that a distinction must be…