IRS erased key records in lawsuit, NetJets says.

Remember the news agencies reporting about the IRS targeting conservative non-profit groups during the last presidential campaign…and the critical emails that would establish truth or fiction turned up missing? Well, the issue’s back. NetJets, an Ohio based private jet company has the same problem…missing IRS emails.

NetJets, a subsidiary of Berhshire Hathaway, sued the IRS in 2011 for a $218 million tax refund and $330 million in tax abatements. In the course of the lawsuit, a subpoena was issued which required the IRS to turn over a number of electronic documents from the computer of an excise-tax policy manager and a key decision maker regarding the application of tax laws resulting in the tax dispute.

Somehow the computer hard drive was wiped clean and NetJets recently filed documents in court providing evidence that the “wiping” was orchestrated by three IRS employees.

The IRS has now filed a counter-suit claiming that NetJets owes $366.3 million in taxes and that it has failed to meet its tax obligations.

The case is still in litigation and the final decision is likely years off. But one thing seems clear – the public perception of the IRS being “transparent” in its operations won’t be helped by these types of alleged actions. For now, the perception that the IRS plays by a double standard and has yet to get its own house in order will likely continue.