Contact Paul +

Time limit is exhausted. Please reload CAPTCHA.

Attorney’s Fees

Final litigation cost award regs and revenue procedure include pro bono rules

Final litigation cost award regs and revenue procedure include pro bono rules

T.D. 9756, 02/29/2016; Reg. § 301.7430-1, Reg. § 301.7430-2, Reg. § 301.7430-3 , Reg. § 301.7430-4, Reg. § 301.7430-5, Reg. § 301.7430-6 , Reg. § 301.7430-7; Rev Proc 2016-17, 2016-11 IRB IRS has issued final regs that reflect changes made to Code Sec. 7430 (relating to awards of administrative costs and attorneys fees) by the […]

Read the full article →

Late-in-the-game IRS concession wasn’t settlement that precluded litigation cost recovery

Late-in-the-game IRS concession wasn’t settlement that precluded litigation cost recovery

Angle, TC Memo 2016-27 The Tax Court has granted a taxpayer’s motion to reconsider its earlier decision denying her litigation costs. It then concluded that IRS’s concession of an issue with respect to the taxpayer’s tax liability was not a settlement for purposes of the rule that a taxpayer cannot receive litigation costs with respect […]

Read the full article →

Deduction OK’d for lawsuit-related fees paid by corporate managing shareholder

Deduction OK’d for lawsuit-related fees paid by corporate managing shareholder

PLR 201548011 In a private letter ruling (PLR), IRS has held that an individual could take a Code Sec. 162(a) business deduction for the legal costs, including compensatory and punitive damages and associated legal fees, resulting from his conduct as the managing shareholder of an S corporation. The litigation payments had their origin in the […]

Read the full article →

Tax Court – No deduction for various expenses related to German-trained lawyer’s U.S. legal education

Tax Court – No deduction for various expenses related to German-trained lawyer’s U.S. legal education

O’Connor and Tracy, TC Memo 2015-155 The Tax Court has held that a U.S. citizen who was licensed to practice law in Germany could not deduct the expenses associated with his legal education in the U.S. The Court determined that, since the taxpayer had not “established himself” in the U.S. legal profession, his educational expenses […]

Read the full article →

9th Circuit Reverses Tax Court – IRS concession wasn’t a “settlement” that precluded recovery of litigation costs

9th Circuit Reverses Tax Court – IRS concession wasn’t a “settlement” that precluded recovery of litigation costs

Knudsen v. Comm., (CA 9 7/15/2015) 116 AFTR 2d ¶2015-5051 The Court of Appeals for the Ninth Circuit, reversing the Tax Court, found that IRS’s unilateral concession that a taxpayer was entitled to full equitable innocent relief didn’t constitute a “settlement” that would preclude her from qualifying as a prevailing party eligible to recover reasonable […]

Read the full article →

No Award Of Litigation And Administrative Costs To Prevailing Taxpayer Who Withheld Records

No Award Of Litigation And Administrative Costs To Prevailing Taxpayer Who Withheld Records

Estate of Fenta, TC Summary Opinion 2015-4   In a summary opinion, the Tax Court denied a taxpayer litigation and administrative costs where the taxpayer, who owned a sole proprietorship cash-intensive business, didn’t provide sufficient records of his cash receipts and certain other relevant amounts until after he filed his Tax Court petition and after […]

Read the full article →

Tax Court oks individual’s business deductions including legal fees for criminal defense

Tax Court oks individual’s business deductions including legal fees for criminal defense

McMillan, TC Memo 2015-109 The Tax Court has allowed business deductions to an individual taxpayer for: a) legal fees that included fees paid to defend the taxpayer against criminal charges; and b) interest paid with respect to a loan that, in a prior Tax Court case, the Court ruled wasn’t a business loan.  Click here […]

Read the full article →

Tax Court: Legal fees paid by sham partnership partner were factual affected items under TEFRA rules

Tax Court: Legal fees paid by sham partnership partner were factual affected items under TEFRA rules

Bedrosian, (2015) 144 TC No. 10 The Tax Court has held that the issue of whether legal fees paid by a partner in a sham partnership were deductible, where it wasn’t clear which of the partner’s matters were covered by those fees, was a factual affected item. Thus, the Court had jurisdiction with respect to […]

Read the full article →

Tax Court: IRS Incorrect Position on Income from Bank Deposits was Reasonable, so Costs Denied

Tax Court: IRS Incorrect Position on Income from Bank Deposits was Reasonable, so Costs Denied

Larry J. Austin, TC Memo 2014-249   The Tax Court has denied an individual’s request for an award of litigation and administrative costs. While IRS incorrectly asserted that the taxpayer had income from bank deposits, IRS’s position was substantially justified such that the taxpayer was ineligible for costs. Background. Under Code Sec. 7430, taxpayers who prevail […]

Read the full article →

IRS liable for litigation costs: taxpayer owned property, so lien against ex-husband invalid

IRS liable for litigation costs: taxpayer owned property, so lien against ex-husband invalid

Baker (DC NH 1/8/2015) 115 AFTR 2d ¶ 2015-323 A district court has granted an ex-wife’s request for an award of litigation costs because it found that IRS’s argument—that it had a lien against her ex-husband with respect to real property that he had transferred to her pursuant to the couple’s divorce—was based on an […]

Read the full article →

Litigation costs awarded to taxpayer who was denied abatement of summary assessment

Litigation costs awarded to taxpayer who was denied abatement of summary assessment

Swiggart, TC Memo 2014-172 The Tax Court has determined that a taxpayer who requested abatement of IRS’s summary assessment of additional tax was a “prevailing party” entitled to a partial recovery of litigation and administrative costs under Code Sec. 7430. The Court found that IRS, which had notified the taxpayer in a math error notice […]

Read the full article →

Litigation costs denied to taxpayer who substantially prevailed in deduction dispute

Litigation costs denied to taxpayer who substantially prevailed in deduction dispute

The Tax Court, in Thousand Oaks Residential Care Home I, Inc., et al., v Commissioner, T.C. Memo. 2013-156, has denied administrative and litigation costs to a taxpayer that substantially prevailed in a dispute with IRS over the reasonableness of its claimed deductions for compensation paid to its owner and his wife. The Court, which noted […]

Read the full article →
Meet Paul Raymond

Meet Paul Raymond

Mr. Raymond is a sought after speaker in tax controversy law by many attorney, accountant, and business groups and at the request of the Internal Revenue Service, has presented programs at the IRS Nationwide Tax Forum, attended by tax professionals throughout the United States.

Additionally, he continues to be an active member in the Section of Taxation, American Bar Association, where he was the Past Chair of the Employment Taxes Committee.

Read More

Connect With Paul on Social Media

Practice Areas & Information

Certifications &
Associations
Member CA Bar Member Orange County Bar US Tax Court Attorney