Rob Evans & Associates, LLC v. United States (Tax Refunds)

After the IRS denied payment of the hefty refund claimed on the income tax return a receiver filed on behalf of a Qualified Settlement Fund, the receiver brought an action against the United States to recover the funds. The receiver had claimed a refund for all monies paid in taxes by the receivership entities on income received through the fraud scheme that receivership entities were now required to pay back to defrauded investors pursuant to a class action judgment. While the court ruled that the receiver was entitled to a refund of taxes paid on income which was returned to investors, the court limited the refund to the amount of income that was actually recovered and transferred to the QSF rather than the amount of income which should be returned to investors pursuant to the judgment.