Legislative

Question 0

Tax appeals process (through courts)

Answer 0

No decision reached in admin appeals process

1. Tax Court
2. US district court
3. US court of federal claims

Then,

1. US court of appeals (tax or district route)
2. US Supreme Court

Question 1

How does tax legislation originate?

Answer 1

1. House Ways & Means committee
2. House vote
3. Senate Finance committee
4. Senate vote
5. Joint Conference Committee to resolve differences
6. New House & Senate vote
7. President
8. If president vetoes, 2/3 House & Senate to override

Question 2

Tax appeals process (administrative)

Answer 2

1. Prelim notice and admin appeal request
2. Note of Deficiency (ticket to go to court)
3. Appeals division
   a. Technical Advice Memo
   b. Small cases
   c. Agreement = Form 870
   d. No agreement = courts

Question 3

Characteristics of Tax Court

Answer 3

• DONT have to pay before going to court
• no jury
• 19 traveling judges

Question 4

Characteristics of US District Court

Answer 4

• jury trial
• 1 judge
• pay tax liab in full prior

Question 5

Characteristics of US Court of Fed Claims

Answer 5

• tax or district route
• panel of 3 judges
• no jury
• geograpic

Question 6

Characteristics of US Supreme Court

Answer 6

• rarely hear tax cases
• panel of 9 judges
• no jury
• they have to choose to hear your case

Question 7

Tax penalties:

• failure to make estimated pmts
• failure to file
• failure to pay
• negligence w.r.t. tax understatement
• negligence w.r.t. sig tax understate
• substantial valuation misstate
• fraud

Answer 7

• materiality = $1000, 90% current yr tax, or 100% last yr tax
• 5% per month
• 1/2 of 1% per month
• 20%
• 20%
• 20%
• 75%