September 27, 2022

Mechanic Escape

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Former Reynolds CEO Bob Brockman asks U.S. judge to lift $1.4 billion tax levy

Previous Reynolds and Reynolds Co. CEO Bob Brockman, who is billed with the major felony tax evasion case by an specific in the U.S., asked a decide to carry an IRS demand that he shell out $1.4 billion in taxes and penalties.

The IRS has improperly imposed a so-termed jeopardy evaluation, which is commonly employed when a taxpayer is “planning swiftly” to leave the nation and put property beyond the attain of U.S. authorities, or when the taxpayer faces insolvency, Brockman’s lawyers reported in a Houston federal courtroom filing Friday. None of people problems applies to Brockman, they claimed.

“No exigency exists here,” attorneys stated in the courtroom filing. “There is no jeopardy. The IRS’s steps have been baseless and wholly unreasonable, and should be immediately abated.”

They questioned that a judge rule on their motion inside 20 times.

The submitting expands on a lawsuit Brockman submitted Thursday, and it denies crucial allegations that are also central to an indictment accusing him of evading taxes on $2 billion in profits. Brockman was indicted in October 2020 on prices of tax evasion, wire fraud, funds laundering and proof tampering in what federal prosecutors allege was an elaborate offshore scheme more than two a long time. He has pleaded not guilty.

Brockman, 80, who was chairman and CEO of the privately held dealership administration system large until he stepped down in November 2020, says he has dementia and is not qualified for trial. Prosecutors say he’s faking. A decide who held an 8-day hearing on the matter in November has yet to rule.

The indictment alleges Brockman managed a Bermuda charitable believe in with billions of bucks of belongings and did not pay back taxes on them. Brockman’s attorneys said the have faith in owns entities that handle the computer software business, Reynolds and Reynolds, which is valued at $5 billion.

The IRS hasn’t alleged that “anyone has taken any action to conceal, dissipate, transfer, or in any way diminish the price of Reynolds,” Brockman’s attorneys wrote in a court filing. “In other text, centered on the IRS’s concept that Mr. Brockman is the proprietor of Reynolds, there are property worthy of a several of the asserted tax liability that are and will keep on being offered in the United States.”

That signifies the IRS can not say that “collection would be jeopardized” if it prevails on the taxes owed, Brockman’s lawyers explained.

A Justice Section spokeswoman declined to remark to Automotive News over and above court docket filings. The authorities had not nonetheless responded to the lawsuit as of Monday.

Brockman’s attorneys did not answer to a request for comment by Automotive News.

The case is Brockman v. United States of The us, 22-cv-202, U.S. District Court, Southern District of Texas (Houston).

Automotive News Reporter Lindsay VanHulle contributed to this report.