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……
Tag: Tax Litigation
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……
Can a Forensic Accountant Testify as an Expert?
One of the most frequent disputes in IRS audits is whether the taxpayer had unreported income. This is income that the taxpayer failed to report on his or her income tax return. This typically involves cash a business or service provider received from clients. It may also include non-cash deposits into financial accounts. This “income……
The U.S. Tax Court: 1 Day Late
In many ways the U.S. Tax Court is a court and operates like other courts. But in other ways, the U.S. Tax Court is more akin to a government agency. This quasi-court status has raised a number of interesting issues about how to litigate a case in tax court and what standards apply and what……
Right to Tax Court When a Taxpayer Dies
What do you do if a loved one is under audit by the IRS and then dies before the audit is closed? Imagine that the IRS issues a Notice of Deficiency to the taxpayer. Do you have the right to petition the U.S. Tax Court for the taxpayer? The court recently addressed this in Sanders……
New Issues: The Downside to U.S. Tax Court Litigation
Justice is not a word that is often mentioned in tax cases. While justice may be handed out in the opinions, the term “justice” isn’t usually expressly stated in the opinion or in the rules that the courts go by. There are exceptions. One exception is in the rules that allow IRS attorneys to raise……
The “Non-Suit” in U.S. Tax Court Cases
The U.S. Tax Court is unique in many ways. It has its own rules and the rules do not always comport with the rules that apply in other Federal courts. One example is that a party cannot just “non-suit” a case in tax court. A non-suit is the process of simply dismissing an action that……
IRS Levy While Tax Litigation is Pending
If you owe back taxes and are litigating the case with the IRS, what happens if you come into money? The IRS has broad levy powers. Can the IRS get the money even though the taxes are being disputed in court? The answer can vary based on whether the underlying tax liability is being disputed……