The federal court dismissed on Tuesday separate lawsuits filed by Bridge Capital LLC chief executive officer John K. Baldwin and his company in Delaware against the U.S. government over a tax dispute.<\/p>\n
U.S. District Court for the NMI designated Judge Frances M. Tydingco-Gatewood dismissed Baldwin\u2019s and Claston LLC\u2019s lawsuits at their request.<\/p>\n
Dismissed with prejudice means Baldwin and Claston LLC can no longer re-file the lawsuits. <\/p>\n
Tydingco-Gatewood directed the clerk of court to close the cases.<\/p>\n
Baldwin and Claston LLC, through their Michael Dotts and Deborah Deitsch-Perez, and the U.S. government, through Tax Division senior litigation counsel Joseph A. Sergi, moved to dismiss the lawsuits pursuant to their agreement that settled both cases.<\/p>\n
Last October, Baldwin told Saipan Tribune that although the court ordered him to pay a $2.1 million tax and penalty capped at 15 percent, it is the Internal Revenue Service that owes him. <\/p>\n
Baldwin said the essence of this case is that the IRS overcharged him on taxes, which he paid.<\/p>\n
He said IRS then agreed to refund him over $4 million that was overcharged, subject to an offset for taxes owed on another matter.<\/p>\n
Last Sept. 28, Tydingco-Gatewood ordered Baldwin to pay $2,085,902 and a penalty arising from his investment in Claston, a limited liability company in Delaware.<\/p>\n
The federal tax dispute was settled in 2012 when the U.S. government agreed that a $4.1 million (plus interest) tax refund was due to Baldwin after the U.S. government wrongfully demanded about $5 million in taxes.<\/p>\n
Baldwin had paid the $5 million, but he and Claston LLC then filed two lawsuits against the U.S. government. The U.S. government eventually conceded that the $5 million were in large part not due. <\/p>\n
Baldwin then agreed that any amount due as a result of the resolution of the Claston case could be deducted from his refund.<\/p>\n
Tydingco-Gatewood\u2019s Sept. 28 order resolved the two remaining issues in the two lawsuits as it finally completed calculations about tax due and interest. <\/p>\n","protected":false},"excerpt":{"rendered":"
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