Tax Court Judge Can Rewrite Facts of Case That He/She Did Not Hear

Tax Free Ira Rollovers As Short-term Loans: Two Examples Of What Not To Do

The tax court released a 400+ page opinion involving the Supreme Court’s ruling in the Ballard v. Commissioner case today.  This case continues the Ballard dispute saga that casts a shadow on whether the U.S. Tax Court is an impartial judicial forum. The Ballard Dispute The readers of this blog will recall the Ballard case…

U.S. Tax Court Petition Date is Absolute

U.s. Tax Court Petition Date Is Absolute

Some dates are absolute. You miss them, you are out of luck. The deadline for filing a petition with the U.S. Tax Court is one of these dates. Today’s Austin v. Commissioner, T.C. Memo. 2007-11, case provides an example. Facts & Procedural History Austin failed to timely file federal tax returns. The IRS imposed failure…

About the IRS Summons Enforcement Hearing

The Hobby Loss Rules: Planning For Unprofitable Businesses

The IRS has quite a few powers to encourage taxpayers to cooperate. The IRS summons is arguably the most powerful tool the IRS has in its arsenal. While the taxpayer may not agree that the underlying tax is even owed, they still have to comply with the IRS’s summons. The recent United States v. Battle,…

U.S. Tax Court Stipulations are Binding

Irs Interest On Employment Taxes Can Be Problematic

Details matter when it comes to tax litigation.  This is especially true for cases before the U.S. Tax Court given its unique stipulation or agreement process.  The Mathia v. Commissioner, No. 10-9004 (10th Cir. 2012) case provides a prime example of this. The Facts & Procedural History Mathia was a 8% limited partner in Greenwich Associates.…

Tax Protestor has Constitutional Right to Choose his Tax Attorney

Tax Protestor Has Constitutional Right To Choose His Tax Attorney

Okay United States v. Nolen is yet another fascinating case (this case will probably make it into the criminal procedure books used in law schools). Nolen addresses the issue as to whether a tax protester has a Sixth Amendment right to choose his own attorney, even if the attorney, unfortunately, insults the court. Facts &…

The IRS Has the Burden of Proof for Items of Income

The Irs Has The Burden Of Proof For Items Of Income

Even the IRS sometimes forgets that it has the burden to prove that a taxpayer earned more income than reported. The Allman v. Commissioner case provides an example of what happens where the IRS attorney shows up to court with no evidence of additional income. Facts & Procedural History The taxpayer worked as an employee for…

State vs. Federal Tax Court Litigation

State Vs. Federal Tax Court Litigation

I often hear criminal attorneys say that they always have a good chance to win state criminal cases, but they are almost never able to win in federal criminal cases. The idea seems to be that federal agencies spend a lot more time and effort preparing and gathering evidence against the accused than do state…

Judicial Misstatement: Intentional, Error or Oversight?

Judicial Misstatement: Intentional, Error Or Oversight?

Judicial opinions often include sentences that misstate the law. Often these sentences will be picked up by the IRS (and sometimes even taxpayers) years later to support arguments that courts should depart from the law. For example, this quote comes from the District Court for the Eastern District of New York in Johnson Home Care…

IRS Rejects Court Orders, Law and Logic: Modus Operandi or Isolated Case?

Irs Rejects Court Orders, Law And Logic: Modus Operandi Or Isolated Case?

Clients often ask me whether the IRS takes steps to slant the facts and law in the governments favor. I often explain that, as with most legal matters, there is really no right or wrong answer until the court makes a final determination and all appeals are exhausted. But when I say this I often…

Supreme Court Questions U.S. Tax Court’s Rule Violations

Supreme Court Questions U.s. Tax Court’s Rule Violations

The U.S. Tax Court provides a forum for contesting tax assessments and for certain collection matters.  It is the only forum that allows taxpayers to maintain litigation without first paying the tax, etc. that is in dispute.  For many taxpayers, it is the only forum that is available.  This is why it is important for…