National Taxpayer Advocate Nina Olson has issued her annual report on the most frequently litigated tax issues: Internal Revenue Code § 7803(c)(2)(B)(ii)(X) requires the National Taxpayer Advocate to identify the ten tax issues most often litigated in the federal courts, classified by the types of taxpayer affected. Through analysis of these issues, the National Taxpayer Advocatewill, [...]
Tags: tax court · Tax Litigation
Forbes reports that The Cheesecake Factory has filed a Tax Court Petition challenging an IRS deficiency assessment of $838,000: In a bit of reflux from the big Wall Street scandal involving backdated stock options, the Cheesecake Factory has sued the Internal Revenue Service over its disallowance of $2.7 million of deductions for executive compensation. A just-filed [...]
Tags: Court Cases · Tax Litigation
Internal Revenue Code § 7491 titled Burden of Proof states in part: (a) Burden shifts where taxpayer produces credible evidence (1) General rule If, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or [...]
Tags: News · Tax Litigation
With the IRS more aggressively pursuing delinquent taxpayers in an effort to close the Tax Gap, we expect to see more cases tried in Tax Court. Here is a brief primer on the peculiarities of Tax Court procedure and how to navigate them to your advantage. Tax Court is a Prepayment Forum for Dispute Resolution [...]
Tags: Tax Litigation · Tax Tips
Three cheers to Eric Toder of Tax Vox Blog who wrote, IRS audit resources have never fully recovered – in relation to the workload the IRS faces – from the IRS-bashing of the late 1990s. That’s too bad because IRS internal studies show each dollar spent on an additional examiner brings in on average 4 to 5 [...]
Tags: IRS Audits · Opinion · Tax Collections · Tax Litigation
Cynthia G. Wilcox v. Commissioner- This case involved a taxpayer who claimed foreign tax credits on her individual income tax returns. The IRS denied the credits because the taxpayer failed to prove that the foreign taxes were actually paid to the foreign taxing authority and assessed a § 6663 (civil fraud) penalty against her for claiming [...]
Tags: Court Cases · Credits · IRS Penalties · Tax Litigation
Alex B. Rhodes, Jr. v. Commissioner - A classic tax protester case. The taxpayer received monies from a qualified retirement plan together with $119k of wages that were reported on a W-2 then filed “zero” returns claiming that, a) he was not a taxpayer; b) the the IRS had no jurisdiction over him; c) his wages did not constitute [...]
Tags: Court Cases · Tax Litigation
