In Re Tax Refund Litigation

MEMORANDUM AND ORDER

PLATT, Chief Judge.

This is an action for a refund of money paid to the Internal Revenue Service (the “Service”) as a civil penalty pursuant to 26 U.S.C. § 6700 (1982) (“section 6700”) which provides for the imposition of a penalty on those who promote “abusive tax shelters.” The plaintiff, Irving Cohen, is an officer of several corporations that allegedly engaged in activities violative of the statute. The penalties relate to literary properties leased to a series of limited partnerships that were then sold by Barrister Associates. The tax credit was passed through to…