Yes, you read that correctly, the IRS seems to have their little feelings hurt according to the latest interactions between McManus’ legal team and IRS lawyers. The high profile case between McManus and the IRS is getting a little bit on the dramatic side if you ask me. After learning of this story, I was motivated to buy some tissue for the IRS legal team so they can wipe the tears from their eyes. Maybe McManus has been a little bit insulting, but my goodness, with more than $5 million dollars at stake, I would expect his side of the fight to get a little audacious.
The IRS is claiming that McManus, a wealthy Irish racing tycoon who won in excess of $17 million playing backgammon while visiting the US, has attempted to engage them in ‘tit for tat’ exchanges and ‘ad hominem’ attacks over the $5 million plus tax charge.
McManus has sued the United States IRS in an effort to reclaim funds that he believes were mistakenly withheld and submitted to the IRS. The Irishman won his multi-million prize through a seventy-two hour backgammon marathon in 2012. McManus is basing the lengthy dispute on the claim that the money was illegally withheld since he is exempt through the treaty that exists between Ireland and the United States that eliminates double taxation.
New filings made by IRS lawyers report that McManus has engage in personal, biased attacks concerning the integrity of the IRS’ legal counsel as well as multiple public servants involved in the dispute at the tax authority office of both Ireland and the US. The IRS lawyers maintain that the plaintiff is more interested scoring news headlines and rhetorical points than he is in resolving the dispute. They go on to claim that the legal briefs submitted by McManus legal team provided inflammatory quote for the press in Ireland to make both agencies look bad that included disparaging rhetoric and accusations of conspiracy.
The IRS team of lawyers ascertains that McManus’ claims of bias from Irish revenue officials is without merit, triggered by the agency providing information that revealed that McManus was not registered with the Irish government for capital gains tax or income tax in excess of 20 years. Ireland has no reason to skew information because they do not have any tax collection interest in the case, and the IRS is confident of the validity of the information provided by Irish authorities.
McManus’ lawyers have responded in opposition to the information, revealing that their client paid €200,000 in domicile levy fees in Ireland in 2012, solidifying his residency of Ireland. His residency of Ireland would exempt him from the US tax on his winnings, supported by the fact that a person’s categorization as a tax resident concerning the purposes of the Ireland – United States tax treaty is based on their place of management, residence or domicile.
I find it laughable that the IRS feels they are above these kinds of accusations after several years of profiling and unfair targeting scandals has hit their house pertaining to US citizens. We all know the IRS is capable of corruption and abusing their power, they just don’t like that another country is now getting a window into it. The case will move on to oral arguments in the United States court of Federal Claims.