IRS can apparently choose to follow or NOT - court rulings ---Can You?

[easytax]

The agency disagrees with a 2013 Tax Court decision that allowed a corporation

with overdue employment taxes to make a tax payment and designate the money

for the unpaid income taxes of its two shareholders. The owners had pled guilty

to failing to file returns and pay income taxes. IRS disregarded the instructions

and applied the money to the firm’s outstanding payroll tax debt.

 

Although the Court ruled that the company’s instructions control,

 

IRS says it won’t follow the decision.

[Lee B]

The only court decisions that the IRS must follow are Supreme Court decisions and Circuit Court of Appeals decisions in the

applicable circuit. It been this way for a long long time. A little reading of U S Tax History may be in order.