This commentary guides the tax practitioner through all aspects of civil tax litigation, whether in Tax Court, the Court of Federal Claims, or a federal district court. Among the topics presented include: choice of forum; the settlement process in the IRS’s Appeals Division; collection due process hearings to appeal IRS liens and levies and related judicial review; Tax Court trials; IRS summons enforcement and procedures relating to IRS collection actions; and refund litigation. The practitioner is provided a guide through the various stages of a Tax Court proceeding, including petitions and pleadings, discovery and stipulations, settlement negotiations, trials and post-trial procedures, and various special Tax Court procedures, including innocent spouse determinations.

About the Authors

Richard J. Sideman has more than thirty years of practice in the U.S. Tax Court, federal district courts, federal courts of appeal, and the U.S. Supreme Court. He has represented individuals, estates, trusts, and corporations against the IRS and the U.S. Department of Justice, handling some of the largest cases tried before the U.S. Tax Court. His largest case involved more than $1.5 billion in tax, penalties and interest. He has also handled numerous cases involving more than $100 million in tax, penalties and interest. In 1978, Mr. Sideman co-founded the law firm of Sideman & Bancroft.

Mr. Sideman received an LL.B. from Harvard Law School in 1964 and an LL.M. in taxation from New York University School of Law in 1965. He served as a trial attorney in the Department of Justice Tax Division and as an Assistant United States Attorney in the Tax Division for the Northern District of California. In these posts, he represented the Internal Revenue Service and the Department of Justice in the federal district courts and the superior courts of California, both in civil and criminal matters relating to federal taxation. 

Mr. Sideman is the co-author, with Robert E. Meldman, of Federal Taxation, Practice and Procedure, published by CCH INCORPORATED.

Steve Katz specializes in tax litigation and tax disputes. He represents the full spectrum of taxpayers, including individuals, corporations, trusts, and estates. He counsels his clients in all phases of disputes against the IRS and Franchise Tax Board, including audits, administrative appeals, and both routine and complex collection matters.

Mr. Katz also represents his clients in litigation in the U.S. Tax Court, U.S. district courts, and the Court of Federal Claims. His is a partner in the law firm of Sideman & Bancroft.

Mr. Katz received his J.D., cum laude, from the University of Michigan.

Mr. Katz was a contributor to Federal Taxation, Practice and Procedure by Robert E. Meldman and Richard J. Sideman, published by CCH INCORPORATED.

The focus of this commentary is coverage of two methods of satisfying federal income tax liability when a taxpayer is unable to make a full payment to satisfy that liability. The author first discusses installment agreements. An installment agreement allows a taxpayer to satisfy the full amount of a tax liability through regular periodic payments. The various types of installment agreements are discussed and the criteria for granting their use are explained. The commentary also covers Collection Information Statements and necessary and conditional expenses allowed to taxpayers. Finally, currently not collectible accounts and defaults and terminations of installment agreements are explained.

The commentary also analyses offers in compromise which allow a taxpayer to settle a tax liability for less than its face amount. The commentary discusses the factors that the IRS considers when determining whether or not to accept an offer in compromise. The procedures for submission, processing and acceptance of an offer in compromise are explained. Also discussed are the consequences of a termination, withdrawal or rejection of an offer and the actions required. Further, the commentary covers collateral agreements, which enable the IRS to collect funds in addition to the amounts secured by the compromise.

About the Author

Paul W. Raymond is an attorney who specializes in tax controversies, including tax audits, tax appeals and tax litigation. He practices before the Internal Revenue Service and various California state agencies including the Franchise Tax Board, the Employment Development Department and the State Board of Equalization.

Mr. Raymond participates as a speaker at an annual seminar entitled “Resolving Tax Controversies” sponsored by the Orange County Bar Association and Southern California Society of Certified Public Accountants. He is a regular speaker at law firms and CPA groups and has spoken at continuing education programs for IRS personnel. He has also taught federal taxation courses at Western State University College of Law. Mr. Raymond has had tax articles published in various periodicals.

Mr. Raymond received a B.A. degree with honors from the University of California at Santa Barbara and a J.D. degree from Western State University College of Law at Fullerton, California. He is licensed to practice before all the State of California Courts, all the District Courts in California, the Ninth Circuit Court of Appeals, the United States Supreme Court, the United States Tax Court and the United States Court of Federal Claims.

Mr. Raymond is a member of the ABA Section of Taxation and serves on its Administrative Practice Committee, the Committee on Civil and Criminal Tax Penalties and the Employment Taxes Committee.

Relatively few practitioners understand both bankruptcy and taxes--and yet some of the most creative and effective solutions for resolving tax problems can often be on the bankruptcy side. This title provides insightful explanation and analysis of the important issues and opportunities at the intersection of tax law and bankruptcy law, with the emphasis on solutions and strategies for individuals. It describes and clarifies the current complex legal framework in which practitioners must labor to resolve tax liability issues for their clients. It provides practical tools--cautions, planning notes, examples--and guides the practitioner toward the best remedy for a client's specific situation.

The first chapter of the book introduces the various remedies available and their advantages and disadvantages. Tax remedies such as using the statute of limitations, installment agreements, offers in compromise, and the innocent spouse rules are explored in the second chapter of the book. The author then analyzes how a secured tax claim works and includes a discussion of federal tax liens and the treatment of the federal tax lien in bankruptcy.

Other chapters include the following: an explanation of unsecured bankruptcy Chapter 7 claims focusing on the nine classes of priority claims; bankruptcy Chapters 11, 13, and 12 are explored; dischargeability of tax debt; a review of the bankruptcy rules applicable to the IRS' claims for pre-petition and post-petition tax, interest and penalties; and a discussion of unliquidated claims and the scope of bankruptcy court jurisdiction, the automatic stay, claim filing by a governmental unit and forcing claim determinations when a claim is not filed and sovereign immunity issues. Finally the trust fund tax liability is discussed, focusing on the nature of the liability and practical ideas for solution. Since the impetus for bankruptcy code reform has remained strong for several years, the book also includes many special notes and comments about the leading bankruptcy reform proposals recently debated in Congress to provide a "heads up" of what may ultimately be enacted to revise the bankruptcy law.

About the Author

Kenneth C. Weil is a sole practitioner in Seattle, Washington, where he has worked since 1983. His practice emphasizes resolving tax disputes and bankruptcy. He has a J.D. from the University of Alabama, an M.B.A. from the University of Chicago, and an LL.M. from New York University. He is also a CPA. He has written and lectured extensively on resolving tax disputes.

Mr. Weil was a member of the Tax Advisory Committee to the National Bankruptcy Review Commission. He was also one of the original members of the ABA Taxation Section's Bankruptcy and Workouts Committee, and he remains an active member of that committee.
 

This commentary explains the Internal Revenue Service procedures involved in the process of auditing returns. It covers the methods used for selecting and classifying returns for examination, including those returns with issues that result in a mandatory examination. The various types of examinations – office exams, field exams and special exams – and the circumstances of their use are discussed in detail. Tangential issues such as taxpayer rights during the audit and appeals process, IRS correspondence and the particulars of practice before the IRS are also covered. The concluding chapters of the commentary deal with closing the examination process, initiating an administrative appeal and settling the case at the appeals level. All aspects of the appeals processed are explained, from filing the protest to settlement agreement. Also discussed are the closing options a taxpayer may consider at the Appeals level.

About the Author

Greta P. Hicks, Certified Public Accountant, is a former IRS training manager and tax manager for Ernst & Young. Ms Hicks has taught for the University Of Houston School of Optometry, Texas A&M Agricultural Extension Service, the Texas Society of CPAs, NTI, PESI, Lorman, and Great American Seminars plus dozens of other professional, trade and educational organizations. Greta was outstanding instructor for National Society of Tax Practitioners. Ms Hicks currently serves on the CPA Today Editorial Board and is its Tax Editor. Greta is a web content provider and writes a tax hints column for subscribers. Her other writing credits include ten self-study continuing education books, web content for H.D. Vest, seminar outlines for Sidney Kess, and articles in numerous professional and business publications. She is active on the TSCPA IRS Relations Committee, the North Texas IRS / Practitioner Council, and former coordinator of Houston’s IRS / Practitioner Study Group.

This volume provides practical guidance to taxpayer representatives on how to successfully navigate each stage of an IRS audit. The IRS Restructuring and Reform Act of 1998, with the dramatic changes that came in its wake and continue today, has fundamentally altered the audit landscape. This volume describes how, in this post-1998 Act environment, the tax practitioner can best represent his or her clients’ interests. It takes a practice-oriented approach to important emerging topics, such as the IRS’s new algorithm for selecting returns based on their potential for unreported income, the agency’s current zeal to identify abusive tax shelters and their promoters, and some expedited mediation and settlement options new to the scene.

At the same time, the volume guides the practitioner through the established core aspects of any audit: responsibilities of the practitioner, case building by both sides, taxpayer interviews, indirect audit methods, settlements, and appeals, among others. Also, an entire chapter is devoted to coordinating sensitive-issue audits and includes advice on how to minimize the risk of a criminal referral.

About the Author

Charles P. Rettig is a member of Hochman, Salkin, Rettig, Toscher & Perez, P.C., in Beverly Hills, California. He is a Certified Specialist in Taxation Law as well as in Estate Planning, Trust & Probate Law by the State Bar of California, Board of Legal Specialization. Mr. Rettig is on the National Board of Advisors for the Graduate Tax Program (LL.M. in Taxation) at New York University School of Law; the Advisory Board of the California Franchise Tax Board; and the Board of Advisors for the CCH Journal of Tax Practice and Procedure. He is a recipient of the District Director's Award, IRS Los Angeles District (1998); the Conference Speaker of the Year Award, California CPA Education Foundation (2000); the Instructor of the Year for the Graduate School of Taxation, Golden Gate University (2002); and recently, the V. Judson Klein Award for Outstanding Achievement in Taxation presented by the Taxation Section, State Bar of California (2003). He is the Institute Chair for the UCLA Extension Annual Tax Controversy Institute and is on the Planning Committee for the USC Institute on Federal Taxation.

Mr. Rettig is a Fellow of the American College of Tax Counsel, a Life Member of the American Tax Policy Institute, and a member of the Association of Tax Counsel. He is on the ABA Tax Section Committee on Appointments to the U.S. Tax Court and the Committee on Civil and Criminal Tax Penalties (and serves as the Subcommittee Chair re Important Civil Developments). He is a Bar Liaison to the Los Angeles Chapter of the California Society of CPA's Committee on Taxation, an Associate Member of the Hawaii Society of CPA's Tax Committee, and is on the faculty of lecturers for the California CPA Education Foundation. He was the initial Coordinator of the IRS Problem-Solving Day--Pro Bono Program for the IRS Los Angeles District and was principally responsible for expanding the Program to other IRS Districts. Mr. Rettig is also an Adjunct Professor at the Graduate School of Taxation, Golden Gate University, in Los Angeles.

Mr. Rettig received his Bachelor of Arts Degree (Economics) from UCLA, his Law Degree from Pepperdine University (cum laude), and his LL.M. (in Taxation) from New York University. He is a member of the State Bars of California and Arizona (inactive). He is a frequent author and lecturer on tax-related issues and specializes in civil and criminal administrative tax controversies with the Internal Revenue Service and state and local tax authorities.

While brides and grooms often take vows "for better or worse," few probably realize at the time that the "worse" could mean a large tax bill for joint tax return errors and/or omissions they knew nothing about. Joint and several tax liability for a joint return may sometimes be waived to avoid an injustice to one spouse of the married couple. Innocent Spouse Relief examines the relief options available to these "innocent spouses." Along with a number of Practice Tools, helpful examples and planning notes enhance chapters such as: Allocation of Liability--Relief for the Separated Spouse under Code Section 6015(c); Manner and Time for Requesting Relief; and Notice to the Nonrequesting Spouse and Opportunity to Participate in Administrative Proceedings.

About the Author

Theodore D. Peyser has been engaged in tax litigation for more than 40 years. As a trial attorney at the Tax Division of the Department of Justice for more than 15 years, he litigated a multitude of refund cases. He served for 10 years as Chief of the Tax Division's Court of Claims Section. He has served as Special Litigation Counsel to the Department of Justice and a member of the Claims Court Advisory Council. He has represented taxpayers before the U.S. Tax Court, the U.S. Court of Claims and the U.S. Court of Appeals for the Second Circuit. Author of two BNA Portfolios Refund Litigation and Limitations Periods, Interest on Underpayments and Overpayments, and Mitigation, he is also co-author of BNA Portfolio Tax Court Litigation. He received a B.A. from Princeton and his LL.B. from Yale.

Internal Revenue Service National Office Practice provides the practitioner with an excellent description of the various Divisions and Offices that make up the IRS, including the Wage and Investment Division, the Small Business / Self-Employed Division, the Large and Mid-Sized business Division, the Tax-Exempt and Government Entities Division, the Criminal Tax Division, National Taxpayer Advocate and Office of Chief Counsel. The operation of the Office of Chief Counsel is covered in detail and many of its programs are also discussed. The commentary also describes in great detail the types of guidance issued to taxpayers in general (regulations, revenue rulings, revenue procedures, notices and announcements) and to specific taxpayers (private letter rulings, determination letters, information letters and grants of extensions to file regulatory elections). In addition, internal advice (e.g., technical advice memoranda, field service advice, litigation guideline memoranda, general counsel memoranda and various Bulletins) issued by the National Office and Office of Chief Counsel to revenue agents, Appeals officers and field attorneys is discussed in depth. Finally, the issue of disclosure of certain internal guidance documents is covered as well as the effect the Freedom of Information Act has had on such disclosure. The procedures for requesting documents and appealing the IRS’s refusal to provide the documents is explained.

About the Author

Joni Larson is an Assistant Professor at Thomas M. Cooley Law School in Lansing, Michigan. Before joining the Cooley faculty she was Executive Assistant to Division Counsel in the Office of Chief Counsel for the Internal Revenue Service. Prior to that post, she was an attorney with the Passthroughs & Special Industry Branch of the Field Service Division and previously had represented the IRS before the Tax Court as a trial attorney. Ms. Larson also practiced as an associate attorney with the Anderson Hunter Law Firm in the areas of estate, business, and tax planning. Finally, she was an attorney-adviser to Judge Irene F. Scott on the U.S. Tax Court. During her career Ms. Larson has served as an adjunct professor at Georgetown University, Catholic University of America, Golden Gate University, and St. Mary's University School of Law and has published many tax articles. She received her J.D. from the University of Montana and her LL.M. from the University of Florida.
 

This title is designed as a hands-on practice tool for attorneys, accountants, financial planners, and managers that desire to form nonprofit, tax-exempt organizations for their clients. It explains in step-by-step detail how to complete Forms 1023 and 1024 accurately to gain IRS approval of exempt status. Sample forms, schedules and other exhibits are provided to guide readers through the formation of a tax-exempt organization on the federal level. This volume eliminates the drudgery of conceiving, drafting and assembling complex applications. One chapter provides some of the most common questions asked by the IRS regarding applications for tax-exempt status, providing assistance in the overall drafting process.

About the Author

Marshall A. Glick maintains a private law practice in Encino, California, that is well known for forming and processing nonprofit, tax-exempt organizations with the IRS. For more than 30 years, he has emphasized tax and estate planning, real estate, corporation and business law in his law practice. Mr. Glick earned his J.D. degree from the UCLA School of Law, and he is a member of the California State Bar Association and is qualified to practice before the U.S. Supreme Court and U.S. Tax Court.

The primary focus of this volume is on the various rules governing the conduct of attorneys, certified public accountants and enrolled agents in federal tax practice. Whether a tax practitioner prepares returns, provides tax-planning advice or represents a taxpayer before the taxing authorities, and no matter the type of taxpayer--individuals, corporations, partnerships, limited liability companies, trusts and exempt organizations-- practice conduct standards govern the conduct of the professional tax practitioner. This volume covers the various standards the tax professional must comply with, including Circular 230, tax practitioner / preparer standards under the Internal Revenue Code, American Bar Association (ABA) standards as well as the American Institute of Certified Public Accountants (AICPA) standards. This title also details the pitfalls for noncompliance with these professional standards, including penalties under the Internal Revenue Code, discipline by a tax practitioner’s professional organization, and possible malpractice suits by a client of the practitioner.

About the Author

Arthur J. (Kip) Dellinger, Jr., is a CPA and Director of Tax Controversy Services at Gaytan Kallman & Co. LLP in Los Angeles, California. He has extensive experience as a tax practitioner focused on income and estate tax planning, compliance and tax controversy matters for high-income individuals, family owned and closely held businesses, fiduciaries and estates. He has served as National Tax Partner of a prominent CPA firm in the entertainment industry specializing in federal and state tax matters. Kip is the author of the CCH book Innocent Spouse Relief: Insights & Strategies, and is the co-author of the CCH book The Offer in Compromise Process: Insights & Strategies. He is also the author of the Entertainment Industry Creative Persons Tax Review for the CCH Client Relate/Pro System fx software product. Kip articles have appeared in the Taxes Magazine, The Tax Adviser, The Journal of Tax Practice and Procedure and Tax Notes.
 

For the CPA, attorney, or financial planner, determining the appropriate valuation method, or knowing the right questions to ask when working with a valuation expert or drafting a QDRO, are daunting tasks even for those involved regularly in divorce. What are the factors to consider in arriving at a true representation of a retirement plan’s value to a spouse in a divorce? Does the plan even accept a Qualified Domestic Relations Order to award benefits to a spouse, or any type of court order dividing retirement benefits? Valuing Retirement Benefits as an Asset in Divorce Proceedings and QDROs gives you the advantage you need. This insightful guide covers virtually every aspect of retirement plans in divorce, from the valuation of retirement benefits to the drafting of QDROs, including suggested settlement agreement language. There is also a chapter on the most recent National Medical Support Notices, otherwise known as Qualified Medical Child Support Orders.

Based on real life practice and experience, and packed with examples, cautions, planning notes and practice tools, this commentary can help take the guesswork out of topics such as: determining the marital and nonmarital portions of a retirement plan benefit or account; QDROs for alimony; QDROs for child support and child support arrearages; methods of dividing benefits and retirement accounts; providing for the unexpected, survivor benefits or post-retirement increases; and QDRO distributions and rollover options, and more!

About the Author

Tim Voit is a Financial Analyst and President of Voit Econometrics Group, Inc. Mr. Voit's practice includes advising on the drafting of QDROs, valuing retirement plans for divorce and valuing plans for securities/investment litigation. He also performs economic analysis and research in areas involving divorce planning, financial planning, and QDROs. Tim establishes retirement plans for law firms and other businesses, is an Investment Advisor for Voit & Hamilton, L.L.C. and is registered with the NASD. He is also an Arbitrator for the NASD. He is a court admitted expert on the drafting of QDROs, and is often called upon in legal malpractice cases to “fix” QDROs and to compute or minimize damages for the carrier. Tim frequently writes for several bar journals, as well as lecturing for Continuing Legal Education around the country. Voit Econometrics Group, Inc. is located in Milwaukee, Wisconsin and Naples, Florida.

Tim is a Graduate of the University of Wisconsin – Milwaukee and has completed graduate coursework in Economics and Accounting. He is a Member of the Association of Family Law Professionals, Member of the International Foundation of Employee Benefits, Affiliate Member of the Florida Bar and Family Law Section of the Florida Bar, Affiliate Member of the American Society of Pension Actuaries, and admitted in Federal and State Courts around the country as an expert in this area of financial analysis.

All tax practitioners need to know about IRS tax penalties to avoid them, to understand them as a potential part of their practice, and to effectively deal with them when they surface. Successful representation and client retention requires a solid understanding of penalties and resultant issues. The Practitioner's Guide to IRS Tax Penalties, written by Robert J. Collins, a 34-year veteran of the IRS, provides a quick-reference explanation of penalties and penalty-related issues with substantial references to important authoritative sources. Practitioners will find this volume a practical resource that will save time and help them focus on and deal with the important penalty concerns and issues. This volume provides in-depth coverage of the tax penalty area--from how the IRS communicates penalties, representation issues and the role of the National Taxpayer Advocate to penalty relief, the various types of penalties that may apply and interest and interest abatement.

About the Author

Robert J. Collins, CPA, is a consultant in the tax controversy area to Reinhart Boerner Van Deuren s.c. in Milwaukee, Wisconsin. Collins, who retired from the Internal Revenue Service in 1995, held the following positions during his 34-year tenure with the IRS: Chief of the Milwaukee Appeals Office; Examination Branch Chief in the Milwaukee District; Midwest Region Large Case Program Manager; Group Manager, Examination Division Chicago District; and Revenue Agent, Chicago District.

Collins is also the coauthor of the study guide / quizzer for Federal Taxation: Practice and Procedure. While with the IRS, he was also an instructor and speaker on a wide variety of tax-related topics. Collins received his undergraduate degree in accounting from Saint Joseph's College in Rensselaer, Indiana, and is a Certified Public Accountant.

This CCH-authored volume provides guidance to practitioners on the issue of the classification of a worker as either an employee or independent contractor. This distinction is important since a misclassification of a worker may be costly both to the worker and to the employer. An employer is required to withhold federal income taxes, social security and medicare payments from an employee’s wages, but has no withholding obligation with respect to amounts paid to an independent contractor. The commentary discusses the guidelines provided by Congressional legislation as well as guidance issued by the IRS. Particular attention is given to the safe harbor provisions of Section 530 and to the IRS audit guidelines and the IRS’s 20-factor test. Also covered in the commentary is the classification of special groups of employees such as statutory employees, statutory nonemployees and technical service specialists.

This CCH-authored title provides a solid working description of key IRS documents and their application to tax compliance and controversy resolution. This guide discusses the legal effect of IRS documents and identifies and describes in straightforward language the myriad of IRS documents. The degree of reliance on such documents and the retroactive application of new or modified IRS positions are explained. The title includes sample key documents, a chart on precedential value of IRS documents, a list of commonly used abbreviations for IRS documents and source materials, guidelines for determining the effect of revenue rulings and revenue procedures on previous rulings, and a listing of commonly referenced documents. Tax practitioners, government employees, educators and students alike will appreciate and benefit from this helpful resource's concise and practical guidance on IRS communications and documentation.