76-10-A3

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Taxes II

Transcript Yesterday I listed some of the things you can do if these fellows at I.R.S. come around to tell you they've decided you owe more than you paid in any one of the previous three years. You are mad at the agent delivering the bad news that on top of disallowing some of your deductions you owe interest and a penalty -- they don't call it a fine. You file a written appeal. You are then invited to what I.R.S. calls an informal conference with -- guess who? -- the agent's boss. He checks the agent's findings, makes sure you and the agent aren't having a personality clash, and barring a miracle, decides against you. Now you carry on and head for the appellate division. This is a panel of hearing officers also employees of the I.R.S. So are the people who will present the agent's findings. You and your tax adviser are the only people in the room who aren't members of this club. About your only chance is if your tax man can come up with some provision of the tax code the agent slipped up on. Then you hang him out to dry. That isn't likely. Alright, so now you are two down and headed for the small tax case procedure or the Tax Court. The amount at issue has to be less than $1500 for you to take this route. Everything is real informal -- you won't need a lawyer (they say). No rules of evidence. Just a bunch of good old boys who want to get to the bottom of this. Of course, the judge -- a lawyer himself -- can't really forget all the law he's learned. The I.R.S. agents are legally trained and very experienced in taking cases through the small tax case procedure. You are outgunned and outnumbered. Three down. Whether your case is under the small case or regular procedure in Tax Court, remember, the judge will attempt to make a ruling based on the Tax Code. That is if the Code is specific enough to make such a ruling possible. If not, he'll probably rule in favor of I.R.S. You're not likely to win unless there has been a flagrant violation of the Code by the revenue agents. Remember, through all these steps you and your adviser are the only members of the cast whose wages aren't paid out of the funds collected by International Revenue. Four down. Of course, there is the Federal District Court and here there will be a jury of your peers who are not on the federal payroll. First, however, you must pay the I.R.S. the disputed tax, the interest and the penalty. Then you sue to get it back. If the jury decides in your favor that's what will happen -- or will it? The Commissioner of Internal Revenue can appeal the case to the Circuit Court of Appeals. That's really no hardship for him - he has the unlimited resources of the federal government to call on. You, of course, are paying for a lawyer, your tax adviser and possible clerical help as well as other expenses. The decision will be reviewed by a panel of three federal judges strictly on the basis of the law and how it applies to your case. Again, it becomes a question of whether I.R.S. is in gross violation of the code and, remember, I.R.S. wrote the regulations that implement that code. If the lower court decision is reversed you are down to big casino or perhaps I should say up. Your last recourse is the U.S. Supreme Court. Is it really worth it in cash or are we doing this for principle? Tomorrow, the last chapter - tune in and find out what happens to John. Q. Taxpayer. This is Ronald Reagan. Thanks for listening.		Details Batch Number 76-10-A3 Production Date 02/22/1977 Book/Page RPtV-123 Audio Youtube? No
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