Previous Posts
   

 
IRS Attorney Shows Up for Court, But That Is About All He Does

  Sponsor
   


 
Blog Archives
   
 

 
Tax Blogs
 

A Taxing Matter
Colorado Estate Planning Attorney
Don't Mess With Taxes
Taxable Talk
Tax Prof Blog
Tax Update
Mauled Again
Talking Taxes


  Our Services
    Tax Advice & Tax Opinions
    Current Tax Returns
    False or Fraudulent Tax Returns
    Unfiled Tax Returns
    State and IRS Tax Audits
    IRS Collections & Negotiations
    Payroll & Employment Tax
    Tax Preparer or CPA Malpractice
 
Common IRS Tax Remedies
    Tax Payment Agreements
    IRS Offer in Compromise
    Abatement of Tax Penalty/Interest
    Innocent Spouse Tax Relief
    IRS Tax Collection Rights
    Bankruptcy Tax
    IRS Private Letter Rulings
    IRS Information or FOIA Request
    IRS Tax Litigation
  Frequently Asked Questions
    Cost & Size of Your Tax Case
    Attorney Disclosure of Client Information
  How to choose a tax attorney
  Why you should hire a tax attorney
 
IRS Abuse & the Ten Deadly Sins
  Contact Us
 
Contact A Tax Lawyer Today!
 
Financial Blogs
 

Mechanics of Money - Bankruptcy
Mechanics of Money - Estate Plan
Mechanics of Money - Finance
Mechanics of Money - Glossary
Mechanics of Money - Insurance
Mechanics of Money - Investments
Mechanics of Money - Retirement
Mechanics of Money - Tax
Clarity Wealth Matters


 
Other Blogs
 

Legal Marketing Blog

 
Advertising
 
 
 
 
 
 
 
 
 
 
 
     

New! Enter your email address to
subscribe to Everything Tax Law!

Do-It-Yourself Will & Estate Planning
RSS/Atom Feed
Bookmark US
Buy Legal Forms

 

IRS Attorney Shows Up for Court, But That Is About All He Does

It is rare for IRS attorneys to lose a case due to not being prepared for trial, that is what makes Allman v. Commissioner interesting.

Allman, the taxpayer in this case, worked as an employee for eleven and a half months in 2003. Allman worked for a construction company for the remainder of the year and he was paid “under the table” for this work. The IRS asserted that Allman failed to report interest income from two insurance policies, Allman underreported his income, and Allman failed to pay self-employment taxes.

Allman testified that he did not own insurance policies and he did not receive interest income from an insurance policy and, therefore, he did not report the interest income on his tax return. The IRS attorney presented no evidence to counter the taxpayers testimony, so the tax court held for the taxpayer.

Allman then argued that his employer, the construction company that paid him “under the table,” had overstated the amount it paid to him on the Form 1099 that it reported to the IRS. Allman was paid cash, so there were no records of how much he was paid. Allman testified that he worked 35 hours per week for 27 days at a $12.50 per hour (with two weeks off for the holidays) to come up with how much he was paid. The IRS attorney cited only the amount listed on the construction company’s Form 1099, rather than presenting evidence that Allman worked more than the hours that he testified to. Because the IRS attorney failed to put on any of this evidence, the court held for the taxpayer.

Allman then argued that he was an employee of the construction company and not an independent contractor; therefore, he was not responsible for paying self-employment taxes. Allman testified that his manager directed him as to what to do for this position, he used the construction company tools, and he did not sign a employment agreement with the construction company. Again, the IRS attorney presented no evidence. As such, the tax court held in favor of the taxpayer.

At the end of the day, the taxpayer prevailed on every issue. The result would have probably been different had the IRS attorney merely called the construction manager to testify and contacted the insurance company to determine ownership of the insurance policies.

Odds are that the IRS attorney did not take this case serious because the amounts in dispute were small and/or the issues were not complicated. If that is the case, the lesson from this case is that small taxpayers should litigate their cases rather than paying the underlying tax. I bet that is not a lesson that the IRS wants taxpayers to learn.

Labels: , , ,

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home

 
www.irstaxtrouble.com
© 2007 - All Rights Reserved _
 

Colorado: Arvada Aspen Aurora Avon Bayfield Basalt Berthoud Black Hawk Boulder Breckenridge Brighton Broomfield Brush Burlington Castle Rock Cedaredge Centennial Cherry Hills Village Colorado Springs Commerce City Cortez Craig Creede Cripple Creek Delta Denver Dillon Durango Eagle Eaton Edgewater Englewood Erie Estes Park Evans Federal Heights Firestone Frederick Fort Collins Fort Lupton Fort Morgan Fountain Frisco Fruita Georgetown Glendale Glenwood Springs Golden Grand Junction Greeley Greenwood Village Gunnison Gypsum Idaho Springs Ignacio Johnstown La Junta Lafayette Lakewood Lamar Larkspur Limon Littleton Lone Tree Longmont Louisville Loveland Lyons Minturn Montrose Monument Morrison Nederland New Castle Northglenn Olathe Pagosa Springs Palmer Lake Parker Pueblo Rifle Sheridan Silt Silverthorne Silverton Town of Snowmass Village South Fork Steamboat Springs Sterling Stratton Superior Telluride Timnath Thornton Trinidad Vail Westminster Wheat Ridge Windsor Winter Park Woodland Park

Texas: Abbott Abilene Addison Alamo Alamo Heights Albany Alice Allen Alpine Alvarado Alvin Amarillo Ames Anahuac Anderson Mill Andrews Angleton Antuckett Appleby Aransas Pass Archer City Argyle Arlington Athens Atlanta AustinAustonio Austwell Avery Azle Bailey's Prairie Baird Balch Springs Ballinger Barrett Bartonville Bastrop Bay City Baytown Beach City Beaumont Bedford Bee Cave Beeville Bellaire Bellmead Bellville Belton Benbrook Big Lake Big Sandy Big Spring Blue Ridge Boerne Bogata Bolivar Peninsula Bonham Booker Borger Brazos Bend Brazoria Brazos Country Breckenridge Bremond Brenham Bridge City Bridgeport Brookshire Brookside Village rownsville Brownwood Bruceville-Eddy Bryan Buda Buffalo Bulverde Burkburnett Burleson Burnet Caldwell Calvert Camden Cameron Camp Wood Canadian Canton Canyon Carrollton Carthage Castroville Cedar Hill Cedar Park Centerville Chappell Hill Chester Chillicothe Christoval Cibolo Cisco Cistern Clear Lake Cleburne Cleveland Clifton Clute Clyde Cockrell Hill Coldspring College Station Colleyville Columbus Comanche Combine Comfort Commerce Conroe Converse Coolidge Coppell Copperas Cove Copper Canyon Corinth Corpus Christi Corral City Corrigan Corsicana Cove Crane Cresson Crockett Crosby Cross Plains Crowell Crowley Crystal Beach Cuero Cumings Cuney Cut and Shoot Daingerfield Daisetta Dalhart Dallas Danbury Dayton Dayton Lakes De Leon Decatur DeCordova Deer Park Dell City Del Rio Denison Denton Denver City DeSoto Detroit Devers Diboll Dickinson Dime Box Donna Dripping Springs Dublin Dumas Duncanville Eagle Pass Early Eastland Eden Edinburg El Campo El Paso Eldorado Electra Elgin Elysian Fields Emory Ennis Eola Euless Egypt Fairfield Farmers Branch Farmersville Farwell Flatonia Flower Mound Forney Fort Davis Fort Stockton Fort Worth Franklin Fredericksburg Freeport Friendswood Frisco Fritch Fulshear Gainesville Galveston Garden Ridge Garland Gatesville Georgetown Giddings Gilmer Glenn Heights Glen Rose Goliad Gonzales Gordon Graham Granbury Grand Prairie Grape Creek Grapeland Grapevine Groveton Gruene Gun Barrel City Hale Center Hallettsville Hallsville Haltom City Hamilton Hardin Harker Heights Harleton Harlingen Harriett Haskell Hearne Hemphill Hempstead Hewitt Hico Hidalgo Hideaway Highland Village Highlands Hill Country Village Hillsboro Hilshire Village Hondo Houston Humble Huntington Huntsville Hurst Hutto Idalou Impact Independence Indian Lake Industry Ingleside on the Bay Ingleside Ingram Iowa Park Iraan Iredell Irving Italy Itasca Jacksboro Jacksonville Jamaica Beach Jasper Jefferson Jewett Johnson City Junction Karnack Katy Keller Kemah Kenefick Kennedale Kerens Kerrville Kilgore Killeen Kingsville Kingwood Kirbyville Kosse Kountze Krugerville Krum Kurten Kyle La Marque La Porte Lacy-Lakeview LaGrange Lake Brownwood Lake Dallas Lake Jackson Lakeway Lampasas Lamesa Lancaster Laredo League City Leander Leon Valley Leonard Levelland Lewisville Lindale Littlefield Live Oak Livingston Lockhart Lolita Longview Lorenzo Los Fresnos Los Ybanez Lubbock Lucas Luckenbach Lueders Lufkin Lumberton Maban Malakoff Manchaca Mansfield Marble Falls Marlin Marshall Mason Mathis McAllen McGregor McKinney McLeod Menard Merkel Mesquite Mexia Midland Midlothian Midway Miles Millersview Millican Mineola Mission Missouri City Mobile City Monahans Mont Belvieu Moody Moore Station Morgan's Point Moulton Mount Pleasant Murphy Nacogdoches Nassau Bay Neiderwald Nesbitt New Boston New Braunfels Newton Neylandville North Cleveland North Richland Hills North Zulch Oak Leaf Oak Point Odessa Old River-Winfree Onalaska Orange Overton Paint Rock Palestine Pampa Pana Maria Pantego Paris Parker Pasadena Pearland Pecos Perryton Pflugerville Pharr Pineland Pittsburg Plainview Plano Plum Grove Ponder Port Aransas Port Arthur Port Lavaca Portland Post Post Oak Bend City Prairie Hill (Washinton County) Presidio Prosper Quanah Queen City Quinlan Quitaque Quitman Ranger Ravenna Red Oak Refugio Reno Richardson Richland Riesel Rising Star River Oaks Roanoke Robinson Rockwall Rosenberg Rosser Round Rock Round Top Rowena Rowlett Rusk Sachse Sadler Saginaw Salado San Angelo San Antonio San Benito San Marcos San Saba Sanctuary Sanderson Sanger Santa Anna Santa Fe Savoy Schertz Scottsville Scurry Seabrook Seagoville Sealy Seguin Seminole Seymour Shallowater Shamrock Shavano Park Shenandoah Sheldon Sherman Shiner Shoreacres Silsbee Slaton Smithville Snyder Somerville Sonora Sour Lake South Padre Island Southlake Southmayd Spearman Spring Valley Springtown Spur Stafford Stephenville Stowell Sugar Land Sunnyvale Sweeny Sweetwater Tahoka Taylor Teague Temple Tenaha Terrell Texarkana Texas City The Colony The Woodlands Tiki Island Timpson Tioga Toco Tom Bean Tomball Trophy Club Troup Turkey Tyler Uncertain Universal City University Park Utopia Van Alstyne Vanderbilt Van Horn Venus Vernon Victoria Vidor Volente Waco Waskom Watauga Waxahachie Weatherford Webberville Webster Weslaco West Columbia West Lake Hills West Orange West University Place Westlake Wheeler White Oak White Settlement Whitehouse Wichita Falls Willow Park Wimberley Windrest Winnie Winters Wixon Valley Wolfe City Woodlake Woodlawn Woodville Woodway Wortham Wylie Yoakum Zapata Zavalla

. . .