Those outside of the tax world often assume that the IRS approaches taxpayers fairly and aims to reach equitable outcomes based on a strict reading of the tax code. This often is not the case. The IRS frequently takes an overly adversarial stance leaning in the government’s favor. This can include adopting positions and interpretations……
Tag: Tax Litigation
Limiting IRS Access to Your CPA & Tax Attorney Records
A core principle of U.S. law and a foundation of our legal system is the presumption of innocence. The burden of proof lies with the accuser, not the accused. This underpins the right against self-incrimination and the right to legal counsel to mount a vigorous defense. However, this framework unravels if the accuser can access……
The “Unclean Hands” Principle in Tax Disputes
There are a number of legal principles that apply when it comes to civil litigation. Some of these rules apply in tax disputes and others do not. And tax disputes add other legal principles that are unique to tax. For example, our Federal tax system is premised on a concept of sovereign immunity where the……
Taxpayer Loses for Tax Court Petition Filed 11 Seconds Late
The voluntary nature of income tax returns in the United States means that taxpayers are responsible for reporting their income and paying the appropriate taxes. Taxpayers do this largely as it is the right thing to do. This is premised on a perception that the tax system has some elements of being fair and uniform……
Recovering Legal Expenses for Mistaken IRS Audit of Non-Resident
The U.S. has significant and complex reporting and filing and notice requirements. This includes a myriad of state and local requirements and federal requirements, including income tax return filing requirements. As odd as it sounds, it is part of what makes America great. We often don’t think about it, but these filing requirements are part……
Recovering Taxes Paid for Another Party
If you pay tax for another party, can you recover the payment if the tax is not owed? The answer is generally “no,” as you cannot sue the Federal government unless it consents and it only consents in limited circumstances. One such consent is the ability to sue for a refund. The rules that allow……
Using Accounting Records in Tax Court
Whether one likes it or not, the federal government is their business partner. The tax code is often compared to a partnership agreement that sets out the share of the income that belongs to the federal government. Continuing the analogy, the records the business keeps are the support for making the allocation between the taxpayer……
Tax Court Review of IRS SS-8 Employment Determination
The IRS has the power to make a number of important determinations, including determining the employment status of workers for purposes of employment taxes. This type of determination can have a significant impact on a worker’s ability to receive unemployment benefits, participate in retirement plans, and more. The IRS often determines that workers are employees,……
Producing Tax Records on the Day of Trial
If you are litigating a case with the IRS in the U.S. Tax Court, can you fail to produce records and then show up with them for the first time on the day of trial? The answer to this question is a clear “no” in most courts as this type of conduct is unfair to……