Judicial Interpretation’s司法解释的

JudicialInterpretationsChapter5WhatdoWeNeedtoKnowAbout“Authorities”WhattheyareTheirsourceWheretofindthemHowtousethemFederalCourtSystemThethirdprimarysourceoftaxlawFederalCourtSystem(Cont’d)TrialCourts1.U.S.TaxCourt}2.U.S.DistrictCourt}3.U.S.CourtofFederalClaimsAppellateCourtsU.S.CourtsofAppealsU.S.CourtofAppealsfortheFederalCircuitFederalCourtSystem(cont’d)•FinalAppeal–allfromtheappealscourtsU.S.SupremeCourtJudicialInterpretations(cont’d)•Alllitigationstartsinoneofthetrialcourts•Eachtrialcourthasit’sownuniqueanddefiningattributesandcharacteristics–Whodecidesinwhichtrialcourttolitigate?GovernmentorTaxpayer?BurdenofProof•Whatisit?•Whocarriesit?BurdenofProof(cont’d)•TheRRA’98changedtheburdenofproof,butw/osignificance.Thegovernmentcarriestheburdenifthepetitioner(mustmeetall):Haspresentedcredibleevidence,Maintainsrecordsandsubstantiatesitemsasrequired,andCooperateswithIRS’reasonablerequestsforinterviews,witnesses,info,documentations,etc.BurdenofProof-§7491•§7491Burdenshiftswheretaxpayerproducescredibleevidence--•(1)Generalrule--•If,inanycourtproceeding,ataxpayerintroducescredibleevidencewithrespecttoanyfactualissuerelevanttoascertainingtheliabilityofthetaxpayerforanytaximposedbysubtitleAorB,theSecretaryshallhavetheburdenofproofwithrespecttosuchissue.BurdenofProof-§7491(cont’d)•(2)Limitations--•Paragraph(1)shallapplywithrespecttoanissueonlyif--•(A)thetaxpayerhascompliedwiththerequirementsunderthistitletosubstantiateanyitem;•(B)thetaxpayerhasmaintainedallrecordsrequiredunderthistitleandhascooperatedwithreasonablerequestsbytheSecretaryforwitnesses,information,documents,meetings,andinterviews;and……….BurdenofProof-§7491(cont’d)•c)Penalties--•Notwithstandinganyotherprovisionofthistitle,theSecretaryshallhavetheburdenofproductioninanycourtproceedingwithrespecttotheliabilityofanyindividualforanypenalty,additiontotax,oradditionalamountimposedbythistitle.BudenofProof-TaxCourtRule#142•(a)–General–(1)Theburdenofproofshallbeuponthepetitioner,exceptasotherwiseprovidedordeterminedbythecourt;andexceptthat,inrespectofanynewmatter,increasesindeficiency,andaffirmativedefenses,pleadedintheanswer,itshallbeupontherespondent.Astoaffirmativedefenses,seeRule39.BurdenofProof-TaxCourtRule#142(cont’d)•(2)SeeCodeSection7491wherecredibleevidenceisintroducedbythetaxpayer,oranyitemofincomeisreconstructedbytheCommissionerbasedonstatisticalinformationonunrelatedtaxpayers,oranypenalty,additiontotax,oradditionalamountisdeterminedbytheCommissioner.BurdenofProof-TaxCourtRule#142(cont’d)•(b)Fraud:Inanycaseinvolvingtheissueoffraudwithintenttoevadetax,theburdenofproofinrespecttothatissueisontherespondent,andthatburdenofproofistobecarriedbyclearandconvincingevidence.CodeSection7454(a).BurdenofProof(cont’d)•WhatabouttheDistrictCourtandtheCourtofFederalClaims?ThegeneralruleofanytrialcourtisthatthePlaintiff/Claimant,etc.(theTaxpayer),mustproveitscaseagainsttheU.S.[§7422(e)].§BurdenofProof(cont’d)•Exceptions:•§7454(a)Fraudw/intenttoevadetax[excepttheTPhastheburdentoprovetheportionthatisnotfraudulent-§6663(b)]–Butdefendantstillcarriestheburdenwithrespecttothecivilmatters•§183(b)Hobbyloss–governmenthasburdentoovercomepresumptionofbusinesspurpose–whereaprofitisrealized3outoffiveconsecutiveyears•§534AccumulatedearningstaxNon-AttorneyConfidentialityPrivilege•Non-attorneyConfidentialityPrivilegedoesnotapplytoThepreparationoftaxreturnsThegivingofaccountingorbusinessadviceTaxaccrualworkpapersStatetaxsituationsWrittencommunicationsbetweenataxpractitionerandacorporationinconnectionwiththepromotionofanytaxshelter.CommonLegalTerms•Percuriam–adecisionofthewholecourt,ratherthanonlyonejudge•Slipopinion–individualcourtdecisionpublishedseparatelyshortlyafteritisrendered.•Declaratoryjudgment–statutoryremedywhereplaintiffindoubtastolegalrights.Bindingadjudicationifrights,evenifnoreliefisawarded.•Enbanc–morethanonejudge,orentirecourt,mayhearacase.Rare–verysignificant/novelissue.Collateralestoppel•Black’sLawDictionary:“Collateralestoppeldoctrine.Priorjudgmentbetweensamepartiesondifferentcauseofactionisanestoppelastothosemattersinissueorpointscontroverted,ondeterminationofwhichfindingorverdictwasrendered.”•“Whenanissueofultimatefacthasbeendeterminedbyavalidjudgment,thatissuecannotbeagainlitigatedbetweenthesamepartiesinfuturelitigation.”•Simply–youcannotagainlitigateonthesamefactsorissues–eveninanothercourtContrastResJudicata•Black’sLawDictionary:“Resjudicata.Amatteradjudged;athingjudiciallyacteduponordecided;athingormattersettledbyjudgment.Rulethatafinaljudgmentrenderedbyacourtofcompetentjurisdictiononthemeritsisconclusiveastotherightsofthepartiesandtheirprivies,andastothem,constitutesanabsolutebartoasubsequentactioninvolvingthesameclaim,demandorcauseofaction.”ResjudicatadistinguishedfromEstoppel•Black’sLawDictionary:Estoppelis“Apriorjudgmentbetweensameparties,whichisnotstrictlyresjudicatabecausebasedupondifferentcauseofaction,operatesasan‘estoppel’onlyastomattersactuallyinissueorpointscontroverted”thepoint•Makesureyouhaveidentifiedthefacts/issuecorrectlyandcompletel