2021 Exam questions
True or False and WHY
The Court has Jurisdiction to determine an overpayment and order a refund or credit in a Collection Due Process (CDP) proceeding.
False
The Court can determine an overpayment and order a refund or credit in a deficiency case, not in CDP.
2021 P-1(d), page 157
The last day for TP to timely file a petition with the Court was April 22, 2015. The Court received the petition via certified mail on April 29, 2015. The envelope containing the petition was properly addressed and had been deposited at a US Post Office with sufficient postage prepaid via Stanps.com. Affixed to the envelope containing the petition was a Stamps.com postage label bearing the date April 21, 2015, the date on which the postage was paid and the label printed. The envelope did not bear a USPS postmark.
Does the court have jurisdiction?
Yes.
Case is Lincoln Pearson and Victoria Pearson
2018 P01(a), page 158
The IRS issued one SNoD asserting an deficiency of income tax in each of three taxable years of TP. Is such a notice for multiple years a proper notice for purposes of Tax Court jurisdiction as to each of the three years?
Yes
2016 P-1(f)
Regarding the Court's jurisdiction over the abatement of interest due to an error or delay by an IRS official, fill in the below blanks:
A ________________ act is a procedural or mechanical act that does not involve the exercise of judgment or discretion and that occurs during the processing of a taxpayer's case after all prerequisites have taken place.
A ________________ act is an administrative act that occurs during the processing of a taxpayer's case involving the temporary or permanent loss of records or the exercise of judgment or discretion relating to management of personnel.
Ministerial
Managerial
Whistleblower awards depend on the IRS both ______________ an administrative or judicial action and _________________ Title 26 proceeds (tax, penalties, interest, additions to tax, etc.) if the disputed amount exceeds 2 million. The award is at least 15% but not more than 30% of the collected proceeds.
initiating
collecting
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True or False and WHY
The Court has deficiency jurisdiction with respect to IRC 3402 withholding taxes.
False.
IRC 3402 relates to payroll taxes, which is not jurisdictional unless relating to employment classification determination.
2021 P-1(g), page 158
With respect to the issue of whether the Court has jurisdiction, describe (1) by whom may the issue be raised, and (2) when the issue may be raised.
1) Either party or the Court may raise the issue on whether the Tax court has jurisdiction. It must be raised before the Court issues its opinion.
2018 P-2, page 160
Yes or No and Identify Statute
The IRS issues to TP a SNoD with respect to one taxable year. The notice determines an income tax deficiency and also XXXXXXXX penalties pursuant to 6662(a) and (b)(2). TP petitions the Tax Court to dispute the deficiency amount and the XXXXXXX penalties. Does the Tax Court have jurisdiction regarding the XXXXXXX penalties?
Yes
Accuracy-related penalties
2016 P-1(c), page 161
Fill in the blanks:
Regarding the Tax Court's jurisdiction to redetermine a deficiency in income, gift, or estate taxes under 6213, a deficiency in income tax includes:
1) A tax on ______________ earnings
2) Personal _____________ company taxes
3) Self-employment tax
4) Liability for withholding of tax on....etc.
1) Accumulated
2) Holding
Page 48
Situations where the Tax Court does not have Jurisdiction include:
1) Imposition of ____________ return penalties (6702 penalties), but remember they CAN hear a ______ case relating to these penalties.
frivolous
CDP
Page 82
True or False and WHY
TP prepares tax returns for other persons, and TP received from the IRS a notice and demand for penalty pursuant to 6695(b) for failing to sign the tax returns of some of TP's clients. TP petitioned the Tax Court to challenge the penalty. Based solely on the notice and demand, the Tax Court has jurisdiction.
False
WHY: The Tax Court does not have jurisdiction over preparer penalties unless they come in through a CDP hearing.
2021 P-1(i), page 158
Yes or No and Identify the Exact Time Limitation:
Is the time limitation of 6015(e)(1)(A)(ii) jurisdictional with respect to the court?
Yes
(ii) not later than the close of the 90th day after the date described in clause (i)(I).
2018 P-1(d), page 160
Yes or No and Identify Statute
TP, who provides tax advice to other persons, received from the IRS a notice and demand for penalty pursuant to 6694(a). TP petitioned the Tax Court to challenge the penalty. Does the Tax Court have jurisdiction if the petition is unrelated to a proceeding under 6320 and 6330?
No
Understatement due to unreasonable positions
Disclosure Actions
Any written determination (ruling, determination letter, TAM, or Chief Counsel advice) and related background documents are open to specific inspection after the IRS redacts specific identifying info.
After exhausting all available administrative remedies within the IRS, the taxpayer can petition the Tax Court to restrain disclosure.
A petition must be filed within ____ days after the IRS mails a notice of intention to disclose information.
How many days?
60
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IRC sections that do not involve deficiencies do not confer jurisdiction on the Court, Therefore, no TC jurisdiction exists when the IRS is not required to issue a NoD.
This includes:
The 6672 penalty, which is the ________ ______ ____________ penalty.
Trust fund recovery
Page 82
Regarding 6015(f) Equitable Relief, take the next 30 seconds to name as many factors as possible AGAINST relief.
Type them in the Slack!
1) The liability is attributable to the requesting spouse.
2) The requesting spouse had knowledge.
3) The requesting spouse received a significant benefit (beyond support) from unpaid liability.
4) There is no economic hardship to to the requesting spouse.
5) The requesting spouse has been noncompliant with federal income tax laws since then, or
6) It is the requesting spouse's legal obligation to pay the amount due.
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