United States Tax Court: A Historical Analysis: A Historical Analysis

by Harold Dubroff, Tax Court (U.S.) (Editor), Brant J. Hellwig

Overview

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The United States Tax Court has played a key role in the development of Federal tax law since its founding as the Board of Tax Appeals in 1924. 

The United States Tax Court-An Historical Analysis (Second Edition) is a 13-part scholarly work which provides insight into the forces which created and shaped the United States Tax Court, its procedures, and its jurisdiction through the present day.

This comprehensive work is packaged with two paperback volumes.

Parts I through IV of the book detail the history of the United States Tax Court, beginning with the creation of the Board of Tax Appeals through the 1969 congressional chartering of the United States Tax Court as a court of record established under article I of the United States Constitution. 

Part V discusses the judicial consideration of the United States Tax Court's constitutional status that culminated in the United States Supreme Court's 1991 decision in Freytag v. Commissioner. 

Part VI addresses foundational aspects of the United States Tax Court's jurisdiction, such as its deficiency and refund jurisdiction.

Part VII examines a number of recent innovations in the United States Tax Court's jurisdiction that are intended to improve the efficiency of tax litigation.

Part VIII explores the jurisdiction of the United States Tax Court to review the administration of certain specified taxpayer rights. 

Parts IX through XI discuss pretrial matters, trial procedure, and post-trial considerations, respectively.

Part XII discusses the position of the Special Trial Judge. 

Part XIII addresses the various means by which the United States Tax Court provides institutional support to self-represented taxpayers.

Product Details

ISBN-13:	9780160928482
Publisher:	United States Courts
Publication date:	05/01/2015
Sold by:	Barnes & Noble
Format:	eBook
Pages:	3581
Sales rank:	784,753
File size:	1 MB
Age Range:	18 Years

Table of Contents

THE UNITED STATES TAX COURT
AN HISTORICAL ANALYSIS
 
TABLE OF CONTENTS
 
PART I
ORIGINS OF THE TAX COURT ........................................................................... 1
A. Development of the Income Tax ............................................................... 1
B. Inadequacy of Preexisting Adjudicative Institutions .............................12
1. Dilemma of the Bureau ......................................................................13
2. The Judicial Remedy ...........................................................................29
3. Pre-Assessment Review Within the Bureau ....................................38
PART II
CREATION OF THE BOARD OF TAX APPEALS:
THE REVENUE ACT OF 1924 ............................................................................49
A. The Revenue Act of 1924 ..........................................................................49
B. The Administration Proposal for a Board of Tax Appeals ..................53
C. Controversy and Modifications ................................................................57
1. Independence .......................................................................................58
2. Procedure ..............................................................................................63
3. Personnel ..............................................................................................70
4. Jurisdiction ............................................................................................76
5. Effect of Board Decision ...................................................................81
D. The Board from 1924–1926 ......................................................................84
1. Selection of Members .........................................................................86
2. Rules of Practice and Procedure .......................................................93
3. The Board in Operation .................................................................. 102
4. Success of the Board ........................................................................ 108
PART III
THE REVENUE ACT OF 1926:
IMPROVING THE BOARD OF TAX APPEALS .............................................. 115
A. The Revenue Act of 1926 ....................................................................... 115
B. Status of the Board .................................................................................. 117
C. Appeals and Finality ................................................................................ 122
D. Jurisdiction ................................................................................................ 131
1. Exclusivity of Board Jurisdiction ................................................... 131
2. Effect of Payment and Limited Refund Jurisdiction .................. 133 
3. Jeopardy Assessments ...................................................................... 136
E. Members .................................................................................................... 140
1. Number of Members ....................................................................... 141
2. Compensation of Members ............................................................ 144
3. Tenure of Members ......................................................................... 146
4. Removal of Members ...................................................................... 151
5. Restrictions on Practice ................................................................... 152
6. Background of Members ................................................................. 155
F. Practice and Procedure ........................................................................... 159
G. Division Decisions and Expediting the Board’s Workload .............. 163
H. Conclusion ................................................................................................ 170
PART IV
THE BOARD BECOMES A COURT ................................................................ 175
A. The Board of Tax Appeals from 1924 to 1942 ................................... 175
B. The Tax Court of the United States – An Independent Agency
in the Executive Branch of the Government ............................................ 185
1. The Revenue Act of 1942 – the Board of Tax Appeals is
 
Renamed the Tax Court of the United States ............................ 186
2. Attempts to Incorporate the Tax Court into the Federal Judicial System ................................................................................................ 195
C. The United States Tax Court – A Court of Record Established Under Article I of the Constitution .........217
D. Questions Concerning Constitutional Status of the Court’s Jurisdiction ...................228
E. Proposals to Consolidate Tax Litigation Before the Tax Court ....... 232
F. Subsequent Developments Consistent With Judicial Status ............. 236
1. Court Security ................................................................................... 237
2. Tax Court Personnel System .......................................................... 238
3. Codes of Conduct and Public Disclosures .................................. 238
4. E-Government Act .......................................................................... 239
5. Admissions and Discipline ............................................................. 239
 
PART V
A JUDICIAL EXAMINATION OF THE TAX COURT’S CONSTITUTIONAL NATURE: FREYTAG V. COMMISSIONER .................................................... 241
A. Developments Before the Tax Court ................................................... 242
B. Decisions at the Courts of Appeals ...................................................... 247
C. The Supreme Court Decision ................................................................ 252 
D. Postscript ................................................................................................... 263
E. Conclusion ................................................................................................ 264
F. Subsequent Development: Kuretski v. Commissioner ............................ 265
PART VI
FOUNDATIONAL PARAMETERS OF TAX COURT JURISDICTION ......... 269
A. Deficiency Jurisdiction ............................................................................ 271
1. Taxes Subject to the Tax Court’s Deficiency Jurisdiction ......... 272
2. Deficiency Jurisdiction: Procedural Requirements .................... 275
3. Jurisdiction to Restrain Premature Assessment and Collection .................... 298
B. Refund Jurisdiction .................................................................................. 301
1. Statute of Limitations on Overpayment Determinations .......... 304
2. Resolution of Potential Concurrent Overpayment Jurisdiction ........................ 308
3. Authority to Order Refund of Overpayment .............................. 311
4. Proposals to Expand Refund Jurisdiction .................................... 311
C. Jeopardy Jurisdiction ............................................................................... 323
1. Jeopardy Assessments ...................................................................... 327
2. Termination Assessments ............................................................... 338
3. Review of Proposed Sale of Property Obtained Through Jeopardy or Termination Assessment ......345
D. Scope of Judicial Powers......................................................................... 349
1. Enforcement Powers ....................................................................... 350
2. Power to Review Constitutionality of Laws ................................. 353
3. Equitable Powers .............................................................................. 357
PART VII
ENHANCING THE EFFICIENCY OF TAX ADJUDICATION:
INNOVATION IN REMEDIES AND PROCEDURES ................................... 387
A. Declaratory Judgments ............................................................................ 387
1. Early Subjects of Declaratory Judgment Jurisdiction ................. 388
2. Expansions of Declaratory Judgment Relief ................................ 403
B. Review of Worker Classification Determinations .............................. 408
C. Innovations in Partnership Proceedings .............................................. 409
1. Uniform Partnership Proceedings Under TEFRA ..................... 412
2. Tax Treatment of Subchapter S Items .......................................... 433
3. Electing Large Partnership Provisions .......................................... 434
4. Declaratory Judgments Relating to “Oversheltered” Returns .. 438 
D. Supplemental Tax Court Jurisdiction .............................................. 441
1. Post-Decision Interest Determinations ........................................ 442
2. Continuing Jurisdiction Over Estate Tax Cases .......................... 445
PART VIII
TAX COURT PROMINENCE IN JUDICIAL REVIEW
OF TAXPAYER RIGHTS ................................................................................... 447
A. Disclosure Actions ................................................................................... 447
B. Relief from Spousal Joint and Several Liability ................................... 456
1. Relief Under Former Section 6013(e) ........................................... 458
2. Section 6015(b) Relief ...................................................................... 461
3. Section 6015(c) Relief ...................................................................... 464
4. Section 6015(f) Relief ....................................................................... 465
5. Procedure for Requesting Innocent Spouse Relief ..................... 466
6. Tax Court Jurisdiction ..................................................................... 468
7. Standard and Scope of Review ....................................................... 472
8. Rights of the Nonrequesting Spouse............................................. 474
C. Jurisdiction to Review Denials of Interest Abatement ...................... 475
D. Review of Determinations in Collection Due Process Proceedings ......................... 481
1. The Government’s Summary Collection Powers ........................ 481
2. The Pre-Deprivation Administrative Hearing ............................. 483
3. Judicial Review .................................................................................. 488
E. Reimbursement of Taxpayer Litigation and Administrative Costs .. 502
1. Pre-TEFRA Rules ............................................................................ 503
2. Taxpayer Rights as Expanded by TEFRA ................................... 507
3. Tax Court Jurisdiction ..................................................................... 526
F. Review of Whistleblower Award Determinations .............................. 530
PART IX
PRETRIAL PROCEDURE .................................................................................. 539
A. The Deficiency Notice ............................................................................ 541
B. The Petition .............................................................................................. 545
1. Content of the Petition .................................................................... 546
2. Congestion of Appeals .................................................................... 552
C. The Answer ............................................................................................... 563
1. Filing Requirements ......................................................................... 564
2. The General Denial .......................................................................... 570
3. Affirmative Allegations .................................................................... 576 
D. The Reply .................................................................................................. 582
1. Filing ................................................................................................... 583
2. Content and Form ............................................................................ 592
E. Stipulations ................................................................................................ 595
1. Stipulations from 1924 to 1945 ...................................................... 597
2. The 1945 Revision ............................................................................ 599
3. Putting Teeth into the Rule: 1955 Revision ................................ 602
4. Revisions of the 1960s ..................................................................... 602
5. 1974: Rule 31(b) Becomes Rule 91 ............................................... 609
F. Pretrial Conferences ................................................................................ 612
G. Discovery................................................................................................... 618
1. Adoption of Discovery Procedures ............................................... 626
2. Expanding Discovery Techniques ................................................. 628
3. Discovery of Expert Witnesses ...................................................... 635
4. Restructuring and Expansion of Deposition Procedures .......... 641
5. Limitations on the Use of Interrogatories .................................... 642
6. Sanctions for Discovery Abuse ...................................................... 643
H. Case Management Procedures ............................................................... 649
1. Joint Motion for Assignment of a Judge ...................................... 649
2. Motions Practice ............................................................................... 650
3. Calendaring Cases for Trial ............................................................. 651
4. Standing Pretrial Order and Pretrial Memorandum ................... 652
5. Standing Pretrial Notice .................................................................. 655
6. Final Status Report ........................................................................... 656
I. Alternative Dispute Resolution ............................................................. 656
PART X
TRIAL PROCEDURE ......................................................................................... 659
A. Place of Trial ............................................................................................. 660
B. Evidence .................................................................................................... 665
C. Burden of Proof ....................................................................................... 674
1. Development of General Rule ....................................................... 674
2. Fraud................................................................................................... 682
3. New Matter ........................................................................................ 686
4. Reassignment of Burden of Proof Pursuant to Section 7491 ... 691
D. Damages for Frivolous or Groundless Proceedings .......................... 698
1. Pre-TEFRA Damages ...................................................................... 698
2. Damages Expanded by TEFRA .................................................... 703
3. Subsequent Statutory Developments ............................................ 712 
PART XI
OPINIONS, DECISIONS, AND APPEALS ...................................................... 721
A. The Decision Process .............................................................................. 721
B. Development of the Single-Member Division Structure ................... 723
C. Findings of Fact and Opinion................................................................ 727
D. Bench Opinions ....................................................................................... 731
1. The Amendment of Section 7459(b) ............................................. 731
2. The Proposal of Rule 152 ............................................................... 734
3. The Adoption and Employment of Rule 152 .............................. 738
E. Memorandum Opinions ......................................................................... 741
F. Court Conference .................................................................................... 745
1. Historical Origins ............................................................................. 746
2. Voting Procedures ............................................................................ 751
3. 1985 Amendments to Conference Procedures ............................ 755
G. Rule 155 ..................................................................................................... 767
H. Appeals ...................................................................................................... 773
1. Federal Rules of Appellate Procedure ........................................... 774
2. Time for Filing Appeal .................................................................... 775
3. Effect of Motion to Vacate ............................................................. 776
4. Finality of Tax Court Decisions ..................................................... 777
5. Reviewable Decisions ...................................................................... 779
6. Venue.................................................................................................. 781
7. The Appellate Process in Operation—Problems and Controversies ............... 788
8. Scope and Standard of Review ....................................................... 791
9. Precedential Value of Decisions of Other Courts ...................... 802
PART XII
SPECIAL TRIAL JUDGES .................................................................................. 811
A. Historical Origins ..................................................................................... 811
B. Early Expansion in Use of Special Trial Judges .................................. 818
C. Authority to Make Decisions in Certain Cases ................................... 819
D. Review of Special Trial Judge Reports ................................................. 823
E. Examining the Tax Court’s Procedures for Reviewing Special Trial Judge Reports: The Saga of Ballard v. Commissioner ................... 828
1. Analysis of Rule 183 Procedures in Freytag v. Commissioner ........ 831
2. The Initial Tax Court Opinion in Ballard ...................................... 839
3. Post-Trial Developments ................................................................ 841
4. Treatment at the Circuit Courts of Appeals ................................. 844 
5. Supreme Court Review .................................................................... 851
6. Release of the Initial Report of the Special Trial Judge ............. 859
7. Corrective Action ............................................................................. 863
8. Remand of the Proceedings to the Tax Court ............................. 864
9. The Tax Court’s Resolution of the Case on Remand ................. 866
10. The Unwelcomed Return to the Courts of Appeals ............... 867
11. Conclusion ..................................................................................... 869
PART XIII
THE SMALL TAX CASE PROCEDURE AND
SUPPORT FOR SELF-REPRESENTED LITIGANTS..................................... 871
A. Small Tax Cases ........................................................................................ 871
1. Amount in Dispute .......................................................................... 875
2. Expansion in Scope of Small Tax Cases ....................................... 877
3. Election by the Taxpayer ................................................................ 879
4. Discontinuance ................................................................................. 882
5. Answers in Small Tax Cases ........................................................... 883
6. Pretrial Procedures ........................................................................... 884
7. Informal Procedures ........................................................................ 884
B. Court Measures to Support Self-Represented Taxpayers .................. 885
1. Taxpayer Information ...................................................................... 885
2. Low-Income Taxpayer Clinics ....................................................... 887
3. Bar Sponsored Calendar Call Programs........................................ 889
APPENDIX A
WORKLOAD OF BOARD OF TAX APPEALS AND
TAX COURT 1925–2012 .................................................................................... 893
APPENDIX B
TAX COURT CASELOAD BY TYPE (IN MODERN TIMES) ....................... 897
APPENDIX C
AREAS OF FORMER TAX COURT JURISDICTION ..................................... 899
A. Renegotiation Cases ................................................................................. 899
1. Nature of Remedy ............................................................................ 903
2. Burden of Proof................................................................................ 904
3. Appellate Review .............................................................................. 907
B. Refunds of Processing Tax ..................................................................... 909 
APPENDIX D
LOCATIONS OF TAX COURT HEARINGS .................................................... 913
APPENDIX E
STANDING PRETRIAL ORDER ...................................................................... 915
APPENDIX F
STANDING PRETRIAL NOTICE ..................................................................... 919
APPENDIX G
TECHNOLOGICAL DEVELOPMENTS AT THE COURT ............................ 923
A. The Tax Court Website ........................................................................... 923
B. Electronic Case Filing ............................................................................. 924
C. Electronic Courtroom ............................................................................. 925
D. Security and  Privacy Protection …………………………………….........925

Interviews

This book my be appropriate for academia and students studying for the tax bar exam.  Tax legislation historians and others interested in the development of the United State Income tax and the history of the United States Tax Court and its procedures will be most interested in this comprehensive historical analysis.