This is the sequel to my recent blog post, The IRS is Still Broken.
The recent Annual Report to Congress issued by The National Taxpayer Advocate, includes an interesting list of the ten tax issues most frequently litigated in federal courts.
1. Appeals from collection due process hearings,
2. Civil Actions to Enforce Federal Tax Liens or to subject property to payment of tax,
3. Accuracy related penalties,
4. Trade or business expenses,
5. Gross income,
6. Summons enforcement,
7. Penalties for failure to file and failure to pay,
8. Itemized deductions,
9. Charitable contribution deductions,
10. Frivolous issues penalty.
Taxpayers won, in full or in part in about 16% of the cases.
The federal courts that hear tax cases include:
1. The United States Tax Court,
2. The United States District Courts,
3. The United States Court of Federal Claims,
4. The United States Bankruptcy Courts,
5. The United States Courts of Appeals, and
6. The United States Supreme Court.
– Mark S Gleason CPA