What happens if the IRS violates the law? Specifically, what if the IRS assesses a penalty and attempts to collect it without first issuing the proper notice to the taxpayer? The court addresses this in Romano-Murphy v. Commissioner, 152 T.C. 62, in the context of a trust fund recovery penalty. Facts & Procedural History The… Continue reading What if the IRS Violates the Law?
Category: Tax Litigation
About Tax Litigation
Tax litigation is a specialty subset of litigation. There are rules and procedures that are entirely unique to tax disputes.
Here is a link to more info for the courts hear tax cases.
This page covers recent cases, rulings, and guidance for Federal and state tax litigation and procedure. Scroll down to read the articles.
If you need help litigating a tax case, you can find out more about how we can help with your tax court case here.
You can also call us at (713) 909-4906.
IRS Summons and the Attorney-Client Privilege
The attorney-client privilege protects communications with a tax attorney from disclosure to third parties, such as the IRS. If the IRS discovers that a tax attorney advised a client on a transaction that wasn’t structured properly, should the IRS be able to use its power to issue an administrative summons to require the attorney produce… Continue reading IRS Summons and the Attorney-Client Privilege
Tax Litigation When the Administrative Process Failed
There are cases where the administrative process does not reach the right conclusion. There are also cases where the administrative process isn’t available or fully completed. This can happen with tax disputes handled by the IRS. When it does, does this mean that the taxpayer cannot litigate the tax dispute? The record rule comes into… Continue reading Tax Litigation When the Administrative Process Failed
When the IRS Raises A New Matter on the Eve of Trial
During the course of litigating a tax matter, the IRS may increase the amount of tax, penalties, and interest that it alleges the taxpayer owes. The IRS is typically allowed to do this. If it does, the IRS may have a harder time prevailing on this type of issue. This “new matter” rule was recently… Continue reading When the IRS Raises A New Matter on the Eve of Trial
The Government’s Ability to Recoup Tax Preparation Fees
Tax preparers can grow their businesses in a short period of time by filing fraudulent tax returns. As word spreads about the size of the refunds these preparers are able to secure for their clients, the preparers pick up new clients and increase the amount of fees they earn. These noncompliant tax return preparers are… Continue reading The Government’s Ability to Recoup Tax Preparation Fees
Failures in Reporting Taxes is Not Tax Obstruction
Does a taxpayer commit a felony offense if they pay a babysitter without withholding taxes, fail to keep receipts for charitable donations, or neglect to provide every record to an accountant? A strict reading of the law would suggest that these actions are felony offense. The U.S. Supreme Court recently addressed this in Marinello v.… Continue reading Failures in Reporting Taxes is Not Tax Obstruction
Improbable Position by IRS Sufficient to Impose Tax
The Transupport, Inc. v. Commissioner, No. 17-1265 (1st Cir. 2018) case involved evidence that was not sufficient to support imposing a penalty, but the same evidence was sufficient to hold the taxpayer liable for the tax. The case provides an …
IRS Summons Reaches Attorney’s Client Names
Communications with an attorney are generally protected from disclosure. But what about client names? And what power does the IRS have the power to force an attorney to disclose the names of his clients? The court addressed this in U.S. v. Servin, No. 17-1371 (3d Cir. 2018). Facts and Procedural History The case involved an attorney… Continue reading IRS Summons Reaches Attorney’s Client Names
Court Denies IRS Injunction in Employment Tax Dispute
It is common for the IRS to make various demands on businesses that are undergoing employment tax audits or businesess that are trying to deal with employment tax collection issues. One common demand is that the taxpayer immediately start complying with the employment tax laws. But what if the taxpayer cannot comply, perhaps due to… Continue reading Court Denies IRS Injunction in Employment Tax Dispute
Two Years to File Refund Suit in District Court, Six Years in Federal Court of Claims
If the IRS owes the taxpayer a refund, the general rule is that the taxpayer has to file a refund claim with the IRS, wait for the IRS to disallow the claim, and then, within two years of the date the claim is disallowed, file suit to recoup the refund. This is the general rule.… Continue reading Two Years to File Refund Suit in District Court, Six Years in Federal Court of Claims