Judicial Tax Law

Tx 8030

Questions of Fact

• Precede analysis of _____ questions• Decided in ____ court (unless clearly

___________)• Resolved by examining ________ sources

– _________ facts– Disputed facts

• Jury’s ______• Judge’s ________ of fact

Which Are Questions of Fact?

Is Jim’s salary reasonable compensation?

Did Mary go to Las Vegas on business?

Do Sue’s activities constitute a hobby or business?

How much did Bob use his car for business?

Questions of LawResolved by applying ____ to ____________ ________ controls unless court:

_____________________

Are these legal issues?Is Sally’s donation to her church deductible?

Is the stock option grant gross income to Bob?

Burden of Proof

• Measure of burden– Usually “_____________”– Sometimes “clear and convincing”

• Who carries burden– _______ court– Shifting burden to ____– __________ court

U.S. Judicial System

Small Claims Division

U.S. Tax Court U.S. District Courts

U.S. Courts of Appeals

U.S. Court of Federal Claims

Federal Circuit U.S. Court of Appeals

U.S. Supreme Court

Small Claims Division

• Assessed deficiency ≤ $________

• Special trial judges

• Less _______

• No _______

• No _________ value

• Decision ____ published

U.S. Tax Court

• Brief History– Board of Tax Appeals– Administrative court of Treasury– Full judicial court

• Major Characteristics– Specializes– Nineteen judges (may sit ___ _____)– ______ court based in D.C.– “_____ man’s court”

U.S. Tax Court(continued)

• Golsen Doctrine• Types of Decisions

– Memorandum• Questions of _____• Application of existing law

– Regular• Novel ______ issues• _______________ procedure

• Publication

U.S. District Courts

• At Least One Per State

• Major Characteristics– Pay deficiency and sue for _______– Generalist court– Trial by _____ available– Binding vs. persuasive authority

• Publication

U.S. Court of Federal Claims

• Brief History– U.S. Court of Claims until _____– U.S. Claims Court, ___________

• Major Characteristics– Pay deficiency and sue for _______– Generalist court– ________, traveling court

• Publication

U.S. Circuit Courts of Appeals

• Major Characteristics– How many circuits are there? In which circuit is Georgia?

– Appeal is matter of right

– Usually resolves only questions of ____

– Primary courses of action• Affirm

• Reverse

• _______

– Panel of __ judges but can sit en banc

– Usually final authority

• Publication

U.S. Supreme Court

• Appeal by _____ of Certiorari• Hears very few tax cases

– Conflict between _________– Very _________ issue– Often involve _____ issues

• Congress can “________” a Supreme Court decision it dislikes

• Publication

Parties Involved: Terminology

• Party Suing– Petitioner– Plaintiff– Appellant

• Party Being Sued– Respondent– Defendant– Appellee

• Designate “________” and “___________”

Parties Involved: Title of Case

• Depends on trial court– Taxpayer v. ____ in Tax Court– Taxpayer v. ____ in other trial courts

• In appellate courts, _________ is often named first.

• Distinguish between ____ and ________• Before ____, revenue collector’s name was

used rather than CIR or U.S.

The Decision

• Rule ____

• Parts of written decision:– Headnotes– Pro se– Per curiam– Dissenting and concurring opinions

Precedential Value

• Dicta

• Insufficient or No Credible Evidence

• Credibility Factor

• Followed, Questioned, and Criticized

• Acquiesce vs. Nonacquiesce

• Tax Court vs. Other Trial Courts

• Reversal vs. Overruled

Purpose of Citators

• Determine Judicial _________– CCH: Includes under one main entry– RIA: Found under separate entries

• Evaluate Judicial _________– CCH: Major weakness– RIA: Letter symbols very helpful

Scope of Citators

• Type of Federal Tax Decision– CCH: Covers only _______ tax decisions– RIA: Covers all ________ tax decisions

• Completeness of List– CCH: Editors _____ list– RIA: List is _________

Organization of Citators

• Volumes– CCH: ____ loose-leaf volumes– RIA: Bound volumes and ___________

• Cited Decisions– CCH: Each _____ is main entry– RIA: Each _________ is main entry

Organization(continued)

• Citing Decisions– CCH: Listed primarily by ______ – RIA: Listed primarily by ______

• Cross Referencing– CCH: _________ reference– RIA: ______ reference

Tufts, John F. . . . . . ¶5802.34, 25,431.02, 25,433.02, 25,826.02, 25,826.17, 29,625.0333, 29,626.0101, 29,663.1535, 29,663.1542, 42,205.0137

• CA-5--(aff’g TC per curiam, on remand from U.S. Supreme Court), 83-2 USTC ¶9674; 712 F2d 199

• SCt--(rev’g CA-5; on writ of certiorari to CA-5), 83-1 USTC ¶9328; 461 US 300; 103 SCt 1826; Ct.D. 2017, 1983-2 CB 7

• CA-5--(rev’g TC), 81-2 USTC ¶9574; 651 F2d 1058Carlson, TC, Dec. 39,257, 79 TC 215Jackson, TC, Dec. 38,344(M), 42 TCM 1413, TC Memo 1981-594

• TC--Dec. 35,359; 70 TC 756

[long list of citing decisions appears here]

[short list of citing decisions appears here]

CCH Citator

RIA (P-H) CitatorINDIANAPOLIS POWER & LIGHT CO., 88 TC 964, ¶88.52 PH TC

a--Indianapolis Power & Light Co.; Comm. v, 65 AFTR2d 90-394 (US) 110 S Ct 589e--Oak Industries, Inc. & Subsidiaries, 96 TC 564, 575, 96 TCR 280-286e--Rev Proc 91-31, 1991-1 CB 566

•INDIANAPOLIS POWER & LIGHT CO., COMM. v, 65 AFTR2d 90-394 (US) 11 S Ct 589, 107 LEd2d 591 (1-9-90)

sa--Indianapolis Power & Light Co. v. Comm., 62 AFTR2d 88-5708, 857 F2d 1162 (USCA 7)sa--Indianapolis Power & Light Co;., 88 TC 964, ¶88.52 PH TCf--Ware, R. Timmisv Comm., 66 AFTR2d 90-5198, 906 F2d 64 (USCA 2)f-1--Oak Industries, Inc. & Subsidiaries, 96 TC 560, 573, 96 TCR 278-286f-1--Buchner, Raymond J. & Amy P., 1990 PH TC Memo 90-20022, 90-2023f-1--Levy, Walter J. & Amneris, 1991 TC Memo 91-1954--91-1955f-1--Rev Proc 91-31, 1991-1 CB 567

INDIANAPOLIS POWER & LIGHT CO. v COMM., 62 AFTR2d 88-5708, 857 F2d 1162 (USCA 7)

a--Indianapolis Power & Light Co.; Comm. v, 65 AFTR2d 90-394 (US), 110 S Ct 589Rev Proc 91-31, 1991-1 CB 567e-1-- Oak Industries, Inc. & Subsidiaries, 96 TC 564, 566, 96 TCR 280-282