Find and properly cite a case in which the taxpayer and the IRS disagreed as to whether the taxpayer was bound by the terms of a closing agreement entered into in connection with a prior audit.
Answer: United States v Booker 543 US 220 (2005)
Find and properly cite a case decided after the year 2000 in which a Big 4 accounting firm litigated the issue of whether either (i) its work papers or (ii) its communications with a client were protected from discovery by the IRS (i.e., the IRS had issued a summons to the accounting firm). Also briefly describe exactly what material(s) the IRS was seeking.
Answer:United States of America, v. DELOITTE LLP, Dow Chemical Company,.No. 09-5171 (2010).
IRS was able to obtain summons to be able to retrieve the following documents.
A draft memorandum created by Deloitte based on a meeting with Dow’s attorneys
An analysis created by Dow’s in-house counsel
A tax opinion from Dow’s outside counsel.
Find and properly cite a case in which a taxpayer sought by judicial action to force the IRS to release certain information pursuant to a FOIA (Freedom of Information Act) request, information that the IRS had declined to release. Briefly state the outcome of the case.
Answer: Church of Scientology INT'L, V.Internal Revenue Service. No. CV 91-1025 (1993)
Find and properly cite a case involving a “Kovel agreement” or otherwise relying on the well-known 1961 Kovel case. Briefly describe the Kovel doctrine.
Answer: Commissioner of Revenue Vs. Comcast Corporation & Another. 453 Mass. 293(2009)
The Kovel doctrine provides that attorney-client privilege shall apply to a defendant dependant on whether the communications were meant to seek legal or accounting advice. However this doctrine may apply to non-lawyers on the basis of the case and this may differ from case to case. The privilege should not apply in instances that it is soughtfrom the non-lawyer.
Find and properly cite a case involving income and/or deductions arising in the legal (under state law) marijuana business.
Answer: Martin Olive V. Commissioner of Internal revenue, No. 13-70510
Find and properly cite a case in which the IRS was attempting to assert the section 6672 penalty against an individual (a “responsible person”) for a company’s failure to collect withholding taxes (payroll taxes) or to pay withheld taxes to the IRS. State the outcome of the case.
Answer: National Bank v. U.S., 591 F2d 1143 (1979) where it was determined that a an individual wouldn’t be liable for the TFRP provided that he or she doesn’t have the responsibility of accounting, collecting or paying the amount, but the liability will always be on the organization.
Exactly why did Hollywood actor Wesley Snipes go to prison? Cite a case that explains the precise reason and briefly explain.
Answer: United States of America Vs Wesley Trent Snipes, 5:06-cr-oc-10. He was charged with a misdemeanour charge of not filing his tax returns for the years 1999, 2000, and 2001.
Same question again but with respect to a certain insider at Dynegy Corporation.
Answer: Dynergy, Inc V Yates No 11-0541 (2013). Dynergy Corporation had been charged for various counts of fraud due to the actions of its former officer, James Olis.
Find and properly cite a 21st century case involving inventory accounting (i.e., tax accounting) in which the court cites and relies on the Supreme Court’s 1979 decision in Thor Power Tool Co. v. Commissioner.
Answer: Suzanne L Porter V Commisioner of Internal Revenue 132. T.C. No. 11 (2009)
Find and cite a case in which a taxpayer argued that the IRS should have accepted her or his “offer in compromise” with respect to a pending tax assessment.
Answer. Re Nancy P. Genung, No. 97-62766
Work Cited
Church of Scientology INT'L, V. Internal Revenue Service. No. CV 91-1025 (1993)
Joseph, Darby J. "Confidentiality and the Law of Taxation." Heinonline (1998): 577.Print
Lyle, Corrie Lynn. "The wrath of IRC: The renewed call for change." HeinOnline (2001): 1132-1137.Print
Madison, Allen D. "Social science research network." 24 June 2015. Tomorrow's Research Today. 1 June 2016 <http://papers.ssrn.com/sol3/Papers.cfm?abstract_id=2622658>.Onlne
McMahon, Martin J. "Privilege And The Work Product Doctrine In Tax Cases." The Tax Lawyer (2005): 405-434.Print
Moohr, Geraldine Szoot. "Tax Evasion As White Collar Fraus." Houston Business and tax Law Journal (2009): 6-10.Print
Novey, James P. Holden and Michael S. "Legitimate Uses Of Letter Rulings Issued To Other Taxpayers." A Reply To Gerald Portney (1984): 337-357.Print
Podgor, Ellen S. "The Challenge of White Collar Sentencing." The Journal of Criminal Law and Criminology (2007): 731-759.Print
Re Nancy P. Genung, No. 97-62766
Suzanne L Porter V Commisioner of Internal Revenue 132. T.C. No. 11 (2009)
United States v Booker 543 US 220 (2005)
United States of America, v. Deloitte Llp, Dow Chemical Company,.No. 09-5171 (2010).
Vitale, Steven A. "An examination of the current status of Marijuana Legalizatization in the United States." heinonline (2015): 130-133.Print
