Discussion: Your Client Was Notified By The IRS He Owes
Discussion 1your Client Was Notified By The Irs That He Owes 50000
Discussion # 1 Your client was notified by the IRS that he owes $50,000 in back taxes. In an effort to resolve the dispute you helped him go through the IRS appeals process. Unfortunately, you were not successful. Thus, you are now prepared to go to court and you have two options (1) TAX COURT (2) DISTRICT COURT. If you were to write a letter to your client, what advantages and disadvantages of each of these options would you list?
Discussion #2 Where are regular Tax Court decisions published? Illustrate the elements of both a temporary and a permanent regular Tax Court citation. Explain what each part of the citation means.
Sample Paper For Above instruction
Dear Client,
Following the IRS notification that you owe $50,000 in back taxes and the unsuccessful attempt through the IRS appeals process, we are now at a crossroads regarding the next steps in disputing this amount. You have two primary options: filing a case in the Tax Court or in District Court. Each venue offers distinct advantages and disadvantages, which I will outline below to assist you in making an informed decision.
Tax Court
Advantages
The primary advantage of the United States Tax Court is that it is a specialized court focused solely on tax disputes. This specialization often results in more knowledgeable judges regarding tax law, leading to fairer and more predictable rulings (Yelowitz, 2012). Additionally, the Tax Court provides a unique feature called “pre-trial review,” where cases can be reviewed before formal trial proceedings, potentially saving time and resources. Another benefit is that the taxpayer does not need to pay the disputed amount upfront before filing a petition, as the Tax Court allows cases to be filed on a deficiency basis (Gordon & Shaviro, 2011).
Disadvantages
A disadvantage of the Tax Court is its limited jurisdiction; it only hears cases involving tax deficiencies and certain penalties, and generally only those initiated by taxpayers. For cases involving broader legal issues or where the taxpayer seeks to challenge a levy or wrongful collection action, the Tax Court may not be suitable. Additionally, the process can be lengthy depending on court docket congestion, and input from IRS attorneys may be more robust, potentially making the proceedings less favorable for taxpayers with complex cases (Schwartz, 2014).
District Court
Advantages
District Courts are general federal trial courts with jurisdiction over various federal issues, including civil cases related to tax disputes when a taxpayer wishes to challenge the IRS’s collection actions or seek a jury trial (Clark, 2013). A major advantage is the availability of a jury trial, which can be appealing if the case involves significant disputes over factual issues. District Courts may also hear cases that involve criminal proceedings related to tax evasion, offering more comprehensive legal options.
Disadvantages
However, District Courts require the taxpayer to pay the full amount of the tax deficiency before initiating litigation, which can be a significant financial burden (Sullivan, 2012). The process may also be more complex and time-consuming because the case involves the broader procedural scope of federal trial courts. Furthermore, district courts do not specialize solely in tax law, which might result in less familiarity with specific nuances of tax disputes compared to the Tax Court.
In conclusion, choosing between the Tax Court and District Court depends on the nature of your case, your willingness to pay upfront, and your strategic priorities, such as preference for expert judges versus jury trials. I recommend considering these factors carefully before proceeding.
Sincerely,
[Your Name]
[Your Title or Law Firm]
References
Clark, J. M. (2013). Federal Courts and Their Jurisdiction. Harvard Law Review, 126(4), 795-824.
Gordon, R. A., & Shaviro, D. (2011). Tax Law and Policy. Foundation Press.
Sullivan, T. (2012). Challenges Facing Taxpayers in District Courts. Tax Notes, 133(2), 45-50.
Schwartz, M. (2014). Judicial Trends in Tax Disputes. University of Pennsylvania Law Review, 162(5), 1423-1450.
Yelowitz, D. (2012). The U.S. Tax Court: Its Role and Impact. Journal of Tax Practice & Procedure, 45(3), 167-180.