Tax Court Litigation, written by Richard A. Levine, Esq., Theodore D. Peyser, Esq., and David A. Weintraub, Esq. of Roberts & Holland, discusses the issues raised when a case is initiated and tried before the United States Tax Court. The Tax Court is the only judicial forum (other than the bankruptcy courts) that allows a taxpayer to litigate a liability for income, estate, or gift tax before payment of the amount in dispute. 

This Portfolio provides the background of the Tax Court, including its jurisdiction, organization, and powers, and examines the advantages and disadvantages of selecting the Tax Court over other judicial forums for contesting a tax deficiency.  In addition, it identifies the form and contents of pleadings; discusses the special provisions applicable to small tax cases; and addresses the procedural, evidentiary, and probative issues relevant to pre-trial, trial, and post-trial proceedings in the Tax Court. 

This Portfolio also offers information on specific topics such as 

• notice of determination in actions for declaratory judgment—§§6234, 7428, 7476, 7477, 7478, and 7479
• payment of tax deficiency not required as well as risk of increased tax deficiency
• petitions filed by partnerships in response to FPAAs, petitions for failure to allow Administrative Adjustment Requests, and petitions filed by electing large partnerships
• coverage of post-trial proceedings, motions to correct transcripts, and briefs and opinions
• small tax cases, including definition of small tax cases, pleadings, and pretrial hearings and trials
• recoverable costs, including rates, allowable expenses, and litigation costs

The Worksheets provide sample documents relevant to the filing and trial of a case before the Tax Court. 

Tax Court Litigation allows you to benefit from:

• Hundreds of hours of original research on specific tax planning topics from leading practitioners in this area
• Invaluable practice documents including tables, charts and lists
• Plain-English guidance from world-class experts
• Real-world and in-depth analysis that lets you explore various options
• Time-saving access to relevant sections of tax laws, regulations, court cases, IRS documents and more
• Alternative approaches to both common and unique tax scenarios 

This Portfolio is part of the U.S. Income Portfolios Library, a comprehensive series that includes more than 200 Portfolios, which covers every federal tax topic with expert, in-depth analysis, and offer commentary on a wide range of federal taxation topics, including Compensation Planning, Deductions and Credits, Partnerships and Corporations, Special Pass-Through Entities, Corporate Reorganizations, Real Estate, Procedure and Administration, and more. 

Detailed Analysis

I. The Tax Court: An Article I Court

A. Creation and Purpose

B. Jurisdiction

1. Deficiency Jurisdiction

2. Additions and Penalties

3. Transferee Liability

4. Partnerships

5. Declaratory Judgments

6. Disclosure Actions

7. Tax Court Review of Denial of Costs

8. Reasonable Litigation Costs

9. IRS Refusal to Abate Interest

10. Relief from Joint and Several Liability

11. Tax Court Review of a Determination in a Collection Due Process Hearing

12. Employment Status and the Amount of Employment Tax

13. Statutory Interest Payable After a Final Decision

14. Reopening of a Federal Estate Tax Case to Allow a Deduction for Interest

15. Equitable Recoupment

16. Whistleblower Award Actions

C. Judges

D. Powers to Prescribe and Enforce Rules

II. Considerations in Selecting the Tax Court over other Forums

Introductory Material

A. Payment of Tax Deficiency Not Required

B. Risk of Increased Tax Deficiency

C. Representation of the Government

D. Precedent

E. The Tax Court's Preference for Intentionalism over Textualism

F. Discovery

G. Places of Trial

H. Backlog

I. Trial by Judge, Not Jury

J. Bench Opinions

K. Small Tax Case Procedure

III. Notices Which Are Predicates to Jurisdiction

A. Notice of Deficiency or Liability

1. Adequacy of Notice

2. Last Known Address-Place to Which Notice Is Addressed

a. In General

b. Physical Receipt Deemed Actual Notice

c. Taxpayers Fail to Receive Notice

d. Clear and Concise Notice of Change of Address

3. Proof of Mailing Valid Notice of Deficiency

B. Final Partnership Administrative Adjustments

C. Administrative Adjustment Request on Behalf of Partnership

D. Adjustments for Electing Large Partnerships

E. Notice of Determination in Actions for Declaratory Judgment-§ § 6234, 7428, 7476, 7477, 7478, and 7479

F. Disclosure Actions

1. Action to Restrain Disclosure-§ 6110(f)(3)

2. Action to Obtain Additional Disclosure-§ 6110(f)(4)

3. Action to Obtain Disclosure in the Case of Third-Party Contacts-§ 6110(d)

4. Action Under § 6110(h)(4)

G. Decision Denying Administrative Costs

H. Abatement of Interest

I. Relief from Joint and Several Liability on a Joint Return

J. Review of Innocent Spouse Defense After a TEFRA Proceeding

K. Review of Determination of Employment Status

L. Review of Notices of Liens and Levies

M. Whistleblower Award Determinations

IV. Privacy Protection

A. Statement of Taxpayer Identification Number

B. Redacted Filings

C. Proceeding Anonymously

D. Access to Electronic Files

V. Initiating Suit

A. Petitions in a Deficiency or Transferee Liability Action

1. Time for Filing Petition

2. Person to File Petition

3. Content of Petition

4. Filing Requirements

B. Petitions Filed by Partnerships in Response to FPAAs

C. Petitions for Failure to Allow Administrative Adjustment Request

D. Petitions Filed by Electing Large Partnerships

E. Petitions in Declaratory Judgment Actions

F. Petitions in Disclosure Actions

G. Petitions in Actions for Administrative Costs

H. Petitions for Review of Denial of Request for Abatement of Interest

I. Petitions for Relief from Joint and Several Liability on a Joint Return

J. Petitions for Lien or Levy Action

K. Petitions for Determination of Employment Status

L. Petitions for Whistleblower Award Actions

M. Designation of Place of Trial

N. Notification of Receipt of Petition

O. Notice of Election to Intervene or Participate

P. Answer

Q. Reply

R. Amended Pleadings

S. Representation of Taxpayers

T. Filing and Service of Papers

U. Electronic Case Filing

VI. Pretrial Practice

A. Motion for Summary Judgment

B. Discovery

1. Scope

2. Time

3. Informal Discovery

4. Interrogatories

5. Production of Documents and Things

6. Requests for Admissions

7. Depositions

8. Administrative Summonses

9. Motions to Compel

10. Motions for Protective Orders

C. Expert Witness Reports

D. Assignment of Judges

1. The Calendaring Process

2. Early Assignment

E. Standing Pretrial Order

F. Pretrial Conferences

G. Place of Hearing of Pretrial Motions

H. Motions in Limine

I. Stipulations

J. Settlement

1. Regular Cases

2. Partnership Cases

3. Basis of Settlement

4. Piggyback Stipulations

5. Stipulations of Settled Issues

6. Rescission of Settlement Agreement

K. Binding Arbitration

L. Submission of Case on Written Record

M. Consolidation

N. Motions for Continuance

O. Motions to Restrain Premature Assessment

P. Motions for Review of Jeopardy Assessment or Jeopardy Levy

Q. Motions for Review of Proposed Sale of Seized Property

R. Dismissal

VII. Trials

A. Trial Memorandum

B. Final Status Report

C. Call of the Calendar

1. General

2. Establishing the Time of Trial

D. Burden of Proof

E. Order of Trial

F. Evidence

1. Federal Rules of Evidence

2. Witnesses

3. Depositions

4. Documents

5. Experts

G. Ordering the Transcript

H. Scheduling Post-Trial Briefs

VIII. Post-Trial Proceedings

A. Motion to Correct Transcript

B. Briefs

C. Opinions

D. Motion for Reconsideration of Findings of Fact or Opinion

E. Decisions

1. Tax Court Rule 155 Procedures

2. Partnership Actions

3. Motion to Vacate Decision

4. Decision Set Aside Due to Fraud

5. Motion for Redetermination of Interest

F. Appeals

1. Appeal from Interlocutory Order

2. Appeal from Decision

a. Limitations Period

b. Bond

c. Venue

d. Standard of Review

3. Tax Court Rules

4. Federal Rules of Appellate Procedure

5. Local Appellate Court Rules

G. Proceeding to Enforce Overpayment Determination

H. Proceeding to Redetermine Interest on Deficiency

I. Proceeding to Modify Decision in Estate Tax Cases Involving § 6166 Elections

J. IRS Acquiescence

K. Circumstances in Which a Second Deficiency Notice May Be Issued

IX. Small Tax Cases

A. Small Tax Case Defined

B. Pleadings

C. Trials and Opinions

X. Awards of Attorney's Fees and Other Costs

Introductory Material

A. Exhaustion of Administrative Remedies

B. Prevailing Party

1. The IRS Position

2. Substantially Prevailed

3. Timely Application or Motion

4. Limits on Net Worth

C. Protraction of Proceedings

D. Recoverable Costs

1. Rates

2. Allowable Expenses

3. Litigation Costs

E. Administrative Fees and Costs

F. Requirements of a Motion for Litigation or Administrative Costs

G. Disposition of Claims for Litigation and Administrative Costs

H. Appeals from IRS Decisions Regarding Administrative Costs

I. Sanctions

Working Papers

Table of Worksheets

Worksheet 1 Sample Petition in Deficiency Action

Worksheet 2 Sample Statement of Taxpayer Identification Number

Worksheet 3 Sample Request for Place of Trial

Worksheet 4 Sample Form 2 Petition

Worksheet 5 Sample Entry of Appearance

Worksheet 6 Sample Answer

Worksheet 7 Sample Notice Setting Case for Trial

Worksheet 8 Sample Standing Pre-Trial Order

Worksheet 9 Sample Motion for Protective Order

Worksheet 10 Sample Stipulated Decision in Tax Court

Worksheet 11 Sample Motion for Reconsideration

Worksheet 12 Sample Petition by Tax Matters Partner in Partnership Action Under § 6226(c)(2) for Re-Adjustment of Partnership Items

Worksheet 13 Sample Notice of Election to Participate in Partnership Action in Tax Court Pursuant to § 6226(c)(2)

Bibliography

OFFICIAL

Internal Revenue Code of 1986:

Treasury Regulations:

COMMITTEE REPORTS:

Public Laws:

Revenue Procedures and Rulings:

Cases:

UNOFFICIAL

Periodicals:

1991

1992

1994

1995

1996

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