On the news about taxes

[Pacun]

Fighting the IRS

Your chances of winning a fight with the IRS are about as great as your chances when fighting City Hall.

National Taxpayer Advocate Nina Olson, in her recently-released annual report to Congress, listed the 10 tax issues most litigated in the federal courts. Of the 923 cases involving those issues, taxpayers prevailed in whole, or in part, in 132, or roughly 14 percent.

Taxpayers who were represented by counsel did somewhat better when the numbers were broken down—they won 20 percent, or 54 of 265 cases; pro se taxpayers prevailed in 12 percent, or 78 of 658 cases.

Full report

http://legaltimes.typepad.com/blt/2010/01/fighting-the-irs.html

IRS commissioner doesn't file his own taxes

By Bob Cusack - 01/10/10 11:54 PM ET

IRS Commissioner Douglas Shulman does not file his own taxes in part because he believes the tax code is complex.

During an interview on C-SPAN's "Newsmakers" program that aired on Sunday, Shulman said he uses a tax preparer for his own returns.

"I've used one for years. I find it convenient. I find the tax code complex so I use a preparer," Shulman said.

Pressed on how he would make the tax code simpler, Shulman responded, "I don't write the tax laws. Congress writes the tax laws so that's a whole different discussion."

Full report

http://thehill.com/blogs/blog-briefing-room/news/75119-irs-commissioner-doesnt-file-his-own-taxes

[kcjenkins]

Of course, that 'win' percentage is very distorted, because it covers only those that actually went all the way to court, while in most cases if they had a good argument, they won at least enough to satisfy themselves in the appeals process that happens before they ever actually go to court. The IRS does not like to make precedent in the taxpayer's favor, so if there is a fair chance they will lose, they will compromise before it ever gets to the court.

It's important you remember that when advising a client about fighting for his point of view.