MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
20th Edition
ISBN: 9781259969614
Author: SPILKER
Publisher: MCG
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Chapter 2, Problem 57P
To determine
Provide a recommendation based on the given alternative facts.
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James has just been audited by the IRS and, as a result, has been assessed a substantial deficiency (which he has not yet paid) in additional income taxes. In preparing his defense, James advances the following possibilities. Are any of them viable?
Although a resident of Texas, James plans to sue in a District Court in Oregon that appears to be more favorably inclined toward taxpayers.
If (a) is not possible, James plans to take his case to a Texas state court as he is more familiar with the practices there. Yes
If he loses at the trial court level, James plans to appeal to either the Federal Circuit or the 11th Circuit Court of Appeals because he has relatives in both Washington D.C., and Atlanta. Staying with these relatives could save James lodging expense while his appeal is being heard by the court.
Even if he does not win at the trial court or appeal court level, James feels certain of success on an appeal to the Supreme Court.
Juan inquired from the BIR whether or not he will be covered with the new tax law. The BIR issued an administrative ruling that his activities are not covered by the new tax law. As a result, Juan did not pay his tax for several years based on the said BIR ruling. Currently, the BIR Commissioner found out that the previous ruling was erroneous and reversed the same with a new BIR ruling. The BIR then issued tax assessment against Juan for purposes of collecting back taxes.Is the tax assessment against Juan correct?
A. Yes, because the previous BIR ruling was corrected and the activities of Juan should have been taxable.
B. Yes, because the ruling of the BIR Commissioner must be final.
C. No, Juan should be exempted from paying taxes under the old and new law.
D. No, because reversal of BIR ruling shall not be retroactive in application especially if the ruling is prejudicial to the taxpayer
Max Houlihan recently received a 90-day letter after an unfavorable decision at an IRS
appeals conference. His CPA discovered that the U.S. Circuit Court of Appeals for the
Federal Circuit has recently issued a favorable opinion with respect to an issue that is
remarkably similar to his issue. If he is going to litigate the issue, Max should choose
which of the following trial courts to hear his case?
O U.S. Court of Federal Claims only
O Tax Court only
OU.S. District Court only
Tax Court or the U.S. District Court
Tax Court or the U.S. Court of Federal Claims
Chapter 2 Solutions
MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Approximately what percentage of tax returns does...Ch. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Compare and contrast the three types of tax law...Ch. 2 - The U.S. Constitution is the highest tax authority...
Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - What are the basic differences between...Ch. 2 - Under what circumstance would the IRS issue an...Ch. 2 - Carlos has located a regulation that appears to...Ch. 2 - Tyrone recently read a regulation that Congress...Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Mason was shocked to learn that the current Code...Ch. 2 - Describe in general the process by which new tax...Ch. 2 - What are the three committees that debate proposed...Ch. 2 - The president recently vetoed a tax act passed by...Ch. 2 - What are the five basic parts of an internal...Ch. 2 - What is the difference between primary and...Ch. 2 - Prob. 25DQCh. 2 - What is the difference between open and closed...Ch. 2 - Prob. 27DQCh. 2 - Amber is a tax expert, whereas Rob is a tax...Ch. 2 - Discuss the basic differences between annotated...Ch. 2 - Prob. 30DQCh. 2 - Lindsey has become very frustrated in researching...Ch. 2 - Nola, a tax novice, has a fairly simple tax...Ch. 2 - Armando identifies a tax research question as...Ch. 2 - How are citators used in tax research?Ch. 2 - What is the general rule for how many authorities...Ch. 2 - Prob. 36DQCh. 2 - Levi is recommending a tax return position to his...Ch. 2 - Prob. 38DQCh. 2 - What are the basic differences between civil and...Ch. 2 - Prob. 40DQCh. 2 - Prob. 41DQCh. 2 - What are the tax practitioners standards to avoid...Ch. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - The estate of Monique Chablis earned 450 of income...Ch. 2 - Prob. 46PCh. 2 - Shane has never filed a tax return despite earning...Ch. 2 - Latoya filed her tax return on February 10 this...Ch. 2 - Using the facts from the previous problem, how...Ch. 2 - Paula could not reach an agreement with the IRS at...Ch. 2 - Prob. 51PCh. 2 - Sophia recently won a tax case litigated in the...Ch. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Randy deducted a high level of itemized deductions...Ch. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Jamareo has found a favorable authority directly...Ch. 2 - Prob. 62PCh. 2 - Prob. 63PCh. 2 - Prob. 64PCh. 2 - Prob. 65PCh. 2 - Prob. 66PCh. 2 - Prob. 67PCh. 2 - Prob. 68PCh. 2 - Prob. 69PCh. 2 - Pierre recently received a tax penalty for failing...Ch. 2 - Prob. 71PCh. 2 - Matt and Lori were divorced in 2016. Pursuant to...Ch. 2 - Shaun is a huge college football fan. In the past,...Ch. 2 - Latrell recently used his Delta Skymiles to...Ch. 2 - Prob. 75PCh. 2 - Prob. 76PCh. 2 - Prob. 77PCh. 2 - Prob. 78PCh. 2 - Maurice has a client that recently asked him about...
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- Irwin Schiff is a self-styled “tax rebel” who has made a career, and substantial profit, out of his tax protest activities. On February 7, Schiff appeared live on CBS News Nightwatch, a late-night program with a viewer participation format. During the broadcast, Schiff repeated his assertion that nothing in the Internal Revenue Code stated that an individual was legally required to pay federal income tax. Schiff then challenged, “If anybody calls this show—I have the Code—and cites any section of this Code that says an individual is required to file a tax return, I will pay them $100,000.” Call-in telephone numbers were periodically flashed on the screen. John Newman, an attorney, did not see Schiff’s live appearance on Nightwatch. Newman did, however, see a twominute videotaped segment, including Schiff’s challenge, which was rebroadcast several hours later on the CBS Morning News. Newman researched the matter that same day and on the following day, February 9, placed a call using…arrow_forwardPlease answer ASAP. Thank you Boston files his lawsuit against Mallory in a South Dakota state court, the state where he resides. Mallory is a resident of North Dakota. The case has a claim at stake worth $100,000. What right, if any, does Mallory have in this case, jurisdictionally? Multiple Choice Mallory can have the case moved to federal court only if the state trial court judge grants permission at his or her discretion. Mallory can have the case moved to federal court only if federal jurisdiction question is involved. Mallory has no choice, and the case will stay in state court. Mallory as the defendant has a right to move the case to federal court under the process of removal jurisdiction Mallory can ask the federal court to hear the case. However, it does not have to hear the case since the amount in controversy is over $75,000.arrow_forward
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