Wednesday, January 24, 2007

IRS: 9th Circuit overturns Tax Court in McKee - Tax law too complicated to understand.

From: Lindsey Springer
Sent: Tuesday, January 23, 2007 10:18 AM
Subject: 9th Circuit in McKee

On December 4, 2006, the 9th Circuit reversed the United States Tax Court on whether litigation costs involving the IRS making a claim that was 3 times what they were actually owed was the liability of the McKee family to suffer. An added penalty so to speak.

ROBERT C. MCKEE v. COMMISSIONER OF INTERNAL REVENUE No. 04-74846 IRS No. 4036-03

It is a short read but the sum of it is the Tax Court held the IRS was not liable for their calculation blunders on the basis that the Tax Court, in its discretion, claimed the regulations written by the IRS and codes were so complex that the IRS could not be held liable for its failure to understand them. The 9th Circuit reversed. The Commissioner of the Internal Revenue asked the 9th Circuit not to make the decision public.

And now you have it. No matter what they do with it, you have a copy of it and the Commissioner is bound by the decision. Imagine, the taxpayer claiming mistake because the statutes and regulations were so complex and the IRS rejecting that and seeking penalties for failure to measure up.

This decision and the Tax Court abuse of discretion show that the Tax Court is not a Court at all but a place where the complexity can be filtered to the benefit of the IRS. I do not mind the Government having the benefit when the law supports their claim but when the law is basically written by them and they claim it is so complicated they cannot be held liable for their mistakes, and they deal with it every day for their job, what does that say about the rest of America?

It is so complicated. The IRS cannot comply with their own regulations nor even understand what they say. Add this to the Paperwork Reduction Act of 1995 duties upon them and it is like having this in HD.

In short conclusion I would say that Judges will eventually show up at the dance but they probably will not be invited nor will they enter as everyone else. It is always good to have someone monitoring the cameras from the side and rear entrances just so we know when they are their and when they have left the building.

Lindsey


http://www.penaltyprotester.com/

Springer vs IRS

5 Comments:

Anonymous Anonymous said...

All the more reason to support Ed Brown!

7:07 PM  
Anonymous Anonymous said...

there's a link for you fred.....thanks for the comments.......dk

7:29 PM  
Anonymous Anonymous said...

the link is in the middle of the post....where it says

ROBERT C. MCKEE v. COMMISSIONER OF INTERNAL REVENUE No. 04-74846 IRS No. 4036-03

click in the post where it says

ROBERT C. MCKEE v. COMMISSIONER OF INTERNAL REVENUE No. 04-74846 IRS No. 4036-03

.

7:37 PM  
Anonymous Anonymous said...

might have to hit refresh....

http://www.ustaxcourt.gov/
InOpHistoric/mckee8.TCM.WPD.pdf

or Google

ROBERT C. MCKEE v. COMMISSIONER OF INTERNAL REVENUE

7:44 PM  
Anonymous Anonymous said...

I'd sure like to see the 9th circuit ruling too.

Thanks

10:35 PM  

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