Law School Resources
Tax Law
I.
A Look Forward
II.
A Glimpse
Backwards
A.
The Income Tax and the Constitution
1.
Power to
Tax Article 1, Section 8, Clause 1
vests Congress with "
the power to lay and
collect Taxes, Duties, Imposts and Excises."
2.
Limits on Power to Tax Article 1,
Sec 2, Cl 3 and Sec 9 Cl 4 require that Direct Taxes
be Apportioned among the several states.
3.
16th Amendment provides
that Taxes shall NOT be s:t the Rule of
Apportionment
IV. Tax
Practitioner's Tools
A.
Legislative Materials IRC
B.
Administrative Materials
1.
Regs issued by Treasury Dept
2.
Rulings
a.
Private
Letter Rulings may be relied upon by
the person to whom it is issued. For Others, it
provides Guidance.
b.
Revenue Rulings
C.
Judicial Materials Where Taxpayer may take
their case
1.
Tax Court
a.
Devoted solely to Tax cases
b.
Do NOT have to Pay alleged
Deficiency prior to filing
c.
"90-day
Letter" from IRS is key must file
w/in 90 Days after Mailing of
Deficiency Letter (i.e. Date on the IRS
90-day Letter)
·
If Tax Court filing sent postage
prepaid (properly addressed to Wash,
DC), Postmark on Mailing to tax Court
determines if this date is met.
d.
Non-Jury Trial
e.
Appeal goes to Ct of Appeals for the
taxpayer's District (11th Circ for Ala)
per the Golson case, Tax Ct MUST follow
the Appellate Courts holding for the T's District
2.
Federal
District Ct
a.
Must Pay Deficiency and sue for refund
b.
Jury Trial Available
c.
Appeal goes to Ct of Appeals for the
taxpayer's District (11th Circ for Ala)
NOTE: Per Flora 362 US
145, if entire Deficiency NOT paid,
MUST go to Tax Court UNLESS tax is a
Divisible Tax, such as Trust Fund tax (i.e payroll
tax w/held)
3.
Court of
Fed'l Claims
a.
Must Pay Deficiency and sue for refund
b.
Non-Jury Trial
c.
Appeal goes to Ct of Fed'l Appeals
NOTE: Per Flora 362 US
145, if entire Deficiency NOT paid, MUST
go to Tax Court UNLESS tax is a Divisible
Tax, such as Trust Fund tax (i.e. payroll tax
w/held)
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