Wednesday, October 10, 2012

Most Litigated Tax Issues for 2011

The internal revenue code (IRC) § 7803(c)(2)(B)(ii)(x) requires the National taxpayer advocate identify in her annual report to congress (ARC) the Ten Tax Issues Most Litigated in federal courts (Most Litigated issues). 
The taxpayer advocate Service (TAS) identified the Most litigated issues from June 1,2010, through May 31, 2011, by using commercial legal research databases. For purposes of this ARC, the term“litigated” means cases in which the court issued an opinion. This year’s Most litigated issues according to the National Taxpayer Advocate 2010 Annual Report to Congress are:  

1. Summons enforcement (IRC §§ 7602(a), 7604(a), and § 7609(a));
2. Trade or Business expenses (IRC § 162(a) and related code sections);
3. Appeals from Collection Due Process (CDP) hearings (IRC §§ 6320 and 6330);
4. Failure to File Penalty (IRC § 6651(a)(1)) and Failure to Pay Estimated Tax Penalty(IRC § 6654);
6. Gross Income (IRC § 61 and related code sections);
7. Accuracy-Related Penalty (IRC § 6662(b)(1) and (2));
8. Civil Actions to Enforce Federal Tax Liens or to subject property to payment of tax (IRC §7403);
9. Relief from Joint and Several Liability for Spouses (IRC § 6015);
10. Frivolous Issues Penalty (IRC§ 6673 and related appellate-level sanctions); and deduction for Charitable Contributions (IRC § 170).
The majority of these issues were identified as Most litigated issues last year, with the exception of the deduction for charitable contributions. 

Summons enforcement was the top issue again this year. the number of cdp cases dropped significantly for the second year in a row—from 170 in 2009 to 131 in 2010 and 89 in 2011.

Cases with accuracy-related penalty issues decreased from 125 in 2010 to 55 in 2011, a 56 percent reduction. 

If you have a Tax Problem which you want to Litigate, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).


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