Jenkens Scoop

[evenodds]

I.R.S. Seeks Names of Wealthy Clients Who Used Tax Shelters
By DAVID CAY JOHNSTON

The Internal Revenue Service ordered one of the nation's biggest law firms, Jenkens & Gilchrist, yesterday to disclose the names of 600 wealthy clients who bought tax shelters that it considers abusive. The law firm said it would not comply.

The shelters allowed taxpayers to fabricate a minimum of $2.4 billion of deductions to reduce their taxable profits, said Cynthia J. Mattson, a senior lawyer at the I.R.S., adding that the figure is likely to be many times that. The tax agency is sending a strong signal to professionals and the wealthy that it will track down tax abusers. In other cases, it is seeking the names of people who bought tax shelters sold by the accounting firms of KPMG and BDO Seidman. Like the law firm, they are fighting disclosure. Two other big accounting firms, PricewaterhouseCoopers and Ernst & Young, reached agreements with the I.R.S. last year when it sought lists of tax shelter clients.

The I.R.S. won approval yesterday from a federal judge in Chicago to issue its summons to Jenkens & Gilchrist, which is based in Dallas. The law firm took in at least $72 million in fees for its tax shelters and probably much more, according to documents filed by the Justice Department.

Full text: http://www.nytimes.com/2003/06/20/bu.../20IRS.html?th

[i812]

j & g could be the new brobeck.

may be dissolved by the 1st quarter of 2004.

[evenodds]

Originally posted by i812
j & g could be the new brobeck.

may be dissolved by the 1st quarter of 2004.

I can see why people are leaving with the big pending lawsuits and penalities associated with their transactions.

Has that been the impetus so far?

Latest is that a big book corporate is about to leave Dallas office with some associates. Liability issue not major concern, but lack of action on new compensation scheme with only very vague promises being a bigger issue. People don't trust chair (although he may be gone soon) , board members or OC members to represent interests of the shareholders or others in each practice department.

Originally posted by greedy
Latest is that a big book corporate is about to leave Dallas office with some associates. Liability issue not major concern, but lack of action on new compensation scheme with only very vague promises being a bigger issue. People don't trust chair (although he may be gone soon) , board members or OC members to represent interests of the shareholders or others in each practice department.

Any large book leaving or any other scandal and I would change vote to this firm will dissolve within a short period of time. One or two people leaving won't kill them, but any group or of say three or more and serious trouble will be present. Any other shoes about to drop? The other board talks about a sex harrasment suit, aimed at something other than chairs conduct. Any ethics charge other than the tax could sink this place real fast.

[Austintatious]

Originally posted by Regional Anon
Any other shoes about to drop? The other board talks about a sex harrasment suit, aimed at something other than chairs conduct. Any ethics charge other than the tax could sink this place real fast.

I haven't followed the investigations closely, but aren't there some serious ethics violations involved in the tax cases? Selling illegal transactions (as their independent lawyer discovered in over 600 of 700 cases) that the IRS had already ruled against suggests some ethics probelms, in addition to civil and criminal penalties.

[i812]

My bet is by the end of the year.

[notcasesensitive]

Originally posted by i812
My bet is by the end of the year.

why the axe grinding, i812? ex-JGer? do you think it makes your supposition more likely if you repeat the same or a similar post multiple times?

Yep. I too am wagering that i812 is one of the following: (1) current J&G associate who gets no love; (2) ex-J&G associate who got no love; (3) ex-J&G summer clerk who got no love/offer; (4) just a guy/gal who gets no love and is bitter; (5) some combination of the above.

Let the anger go, man, and let the love in.

Originally posted by notcasesensitive
why the axe grinding, i812? ex-JGer? do you think it makes your supposition more likely if you repeat the same or a similar post multiple times?

without knowing who i812 is or not or having a care either way, does it make his or hers information less valuable? IF J&G keeps denying problem and people walk out door in droves does it mean no less of a problem exists when people get up in meetings and say there is no problem here and no one is leaving?

[notcasesensitive]

Originally posted by Regional Anon
without knowing who i812 is or not or having a care either way, does it make his or hers information less valuable? IF J&G keeps denying problem and people walk out door in droves does it mean no less of a problem exists when people get up in meetings and say there is no problem here and no one is leaving?

Well, if em was actually posting any information, no. However, simply repeating "I bet it will dissolve by _____" is not really adding to the mix. I actually doubt em is an ex-JGer since he/she can't even get the spelling of the firm name right.

Guest and others have posted useful info. I'm all for that.

I wish I had more love.

A couple of my friends were among those that have left in the last few months - one for greener pastures, but with no particular ill will towards J&G, the other just getting the hell out of there, because em hated the place with a passion (and had some horror stories to tell, which I unfortunately can't repeat here). Despite their extremely different attitudes towards their former firm, both felt strongly that it (or at least the Dallas office) was circling the drain, and would take some major changes to pull it back out.

So, though I don't know what i812's deal is, I've been kinda on the J&G deathwatch, too. No animus (although one less competitor, the better), but given the tax mess and the other rumors (and assuming it's all true, which I do), I'm getting to the point where I think they ought to go under, just so there's some semblance of justice in the legal world.

Originally posted by Regional Anon
without knowing who i812 is or not or having a care either way, does it make his or hers information less valuable? IF J&G keeps denying problem and people walk out door in droves does it mean no less of a problem exists when people get up in meetings and say there is no problem here and no one is leaving?

You are definitely a J&G assoiciate (and perhaps i812 in disguise). The message to you is the same as the message to i812, if you have useful information, or even marginally credible gossip, post it. Otherwise, stop trying to fan the flames with "when will they dissolve?" repetition. It's a lame, old bulletin board trick.

[SEC_Chick]

Originally posted by Regional Anon
You are definitely a J&G assoiciate (and perhaps i812 in disguise). The message to you is the same as the message to i812, if you have useful information, or even marginally credible gossip, post it. Otherwise, stop trying to fan the flames with "when will they dissolve?" repetition. It's a lame, old bulletin board trick.

See. This is the problem with open anon logins. Unless you are afraid of outing yourself as someone who wants details and credible information, why could you not post this under your own name.

I originally thought, how ironic (can I use that word here, since it's not the FB?) that em doesn't want emself outed as a non- JGer when em is mocking someone em believes to be a J&Ger, who is using the same login. Even if you are a J&G apologist insider, one wouldn't guess it from this post, so please, people, build up some of your own ID credibility or create a firm-info-specific sock, so we at least have SOME means of determining credibility based on past posts.

Edited to add that you can also email info to a mod, like Tex Lex and she will post stuff and protect your identity if you are too lazy to sock and while that doesn't build ID credibility it's better than an anon ID attacking itself.

I don't really understand this last post. Boards are anon; who cares if someone logs in as anon? The i812 person posted at least 3 "when will Jenkens dissolve" posts on the Texas board, plus the same thing on the LA board and the Chicago board. Possibly others, I'm sure. Do you not think there's an ax to grind or an agenda?