Students and prospective students may download the most book here. Other persons interested in federal tax
procedure issues may download the book free of charge.
I ask those other than my students who download the book to advise me by email
that they have downloaded the book and the expected use. I also ask
that, if you find any portion of the book that you believes need correction
or clarification, please advise me at the same email address.
|
Townsend Tax
Procedure (Fall 2011 - No Footnotes) |
This is the edition for the 2011 class. The
class text has no footnotes. I provide a footnoted edition below, but for
class I do not want the students to read the footnotes. Please note
that the edition for use in the class has no footnotes. I do have
footnote and endnoted versions of the book here
but do not recommend them for the class as the footnotes develop thoughts
and provide citations that are not important for the class. |
|
Townsend Tax Procedure Materials (Fall 2008) |
These are materials (case and law review articles) that I
will ask the Students to read outside the text. I will assign these
materials to students in the class. This is the edition for the 2008
class. I have made no changes for 2011. |
|
Student
Questionnaire |
|
For extra reading to round out your tax procedure
education (you need to get good at both of these):
Strunk & White, The Elements of Style (4th ed. 2000)
Frankfurt on Bullshit (1st ed. 2005) |
Strunk & White from
Amazon.com Frankfurt from
Amazon.com (although an earlier, less bullshit version from the
internet can be downloaded
here. |
FOR REVISIONS OR ERRATA
TO THE BOOK, GO TO UPDATE MATERIALS BELOW.
1. The course combines text materials, code sections and case
and other materials. The cases are relatively few and are designed to encourage
active student
participation in the class. Students will be pre-assigned cases for
class presentation.
2. The text (non-footnoted version for class) is 502 pages. The text will thus be, on average, less than
50 pages per 2
hour class. There is more reading, however. You should generally
read the Code Sections that are cited in the text (not in the footnotes for
those who may work from the footnoted or endnoted versions). I expect students to read and understand the
key Code Sections. The Code Sections may add an additional 5-10 pages per class
(probably less).
I also will assign cases and articles for you to read for some classes.
The cases and articles are in the download materials above. Cases will be assigned so that students will know in
advance when they will be called upon.
3. The classes will not require an extraordinary amount of
reading for law school. The classes will, hopefully, require that you
think about the larger process of the revenue function of Government and how
it interfaces with the citizen. The class is not designed to teach
you a lot of nitpicking rules, with exception upon exception. You will
suffer that punishment when you become a tax lawyer. Instead, the class
will teach you broad principles and introduce you to the
highlights of tax procedure. I hope to engage your thinking and reasoning capacities
rather than your memorization capacities.
4. The digital files that you download are in Adobe Acrobat
format. Many of you will already be familiar with that format because it
is ubiquitous in business and on the Code. For best use of the file, you
should have a recent version of the free Acrobat Reader (7 or higher) or a
version of Adobe Acrobat (the latter of which is not free).
5. In the digital file, you can navigate around in several ways using the Acrobat Reader. First, you can use the bookmarks feature to see an
outline of the book (like a table of contents) that you can then click to move
to the relevant text.
6. If you prefer to review from a hardcopy, you can print out
the materials. My recommendation is that you not print out
indiscriminately because the number of pages is great.
Unit 1
8/25 |
Introduction to Class
Ch. 1 Purpose and Scope
Ch. 2 Organization and Structure of the Federal Revenue Function
Ch. 3 Taxpayer Access to Information - FOIA and the Privacy Act
Ch. 4 Confidentiality and Disclosure of Tax Return Information |
Unit 2
9/1 |
Ch. 5 Returns
Read the Williams v. Commissioner and Badaracco Cases
Ch. 6 Statutes of Limitation (through p.
136 - IV. Overpayments starts on following page)
Case Assignments: -
Badaracco - All Students
Williams v. Commissioner - All Students |
Unit 3
9/8 |
Ch. 6 Statutes of Limitations balance of Chapter
(starting with p. 137 V. Overpayments)
Ch. 7 Interest
Case Assignments
Brockamp - Block, Chavez, Currin, Endara, Foster, Tamez,
White
Estate of Branson - Grier, Kumar, Laidlaw, Nobles, O'Neil,
Powell, Suntharam
Taylor |
Unit 4
9/15 |
Ch. 8 Penalties
Read Addington, Boyle, and Streber
Case Assignments:
Addington - Grier, Kumar, Laidlaw, Nobles, O'Neil
Boyle - Block, Chavez, Currin, Endara, Foster
Strebert - Powell, Suntharam, Tamez, White |
Unit 5
9/22 |
Ch. 9 The Examination Function
Case Assignments:
Powell - Powell, Suntharam, Tamez, White
Gertner - Grier, Kumar, Laidlaw, Nobles, O'Neil
Frederick - Block, Chavez, Currin, Endara, Foster |
Unit 6
9/29
|
Ch. 9 The Examination Function (cover
any carryover matters)
Ch. 10. Appeals
Ch. 11 Notice of Deficiency
Ch. 12 Litigation
For those interested in the dynamics of tax cases before Appellate
Courts, download the
following discussion.
Extra Material on the Courtroom Experience:
Dress
appropriately.
Opening
Arguments.
Expert
qualification. |
7
10/6
|
Ch. 13 Assessment Procedures & Ch. 14 Collection
Procedurs (to p. 417 - XIV
Outsourcing the Collection Function)
Drye - Block, Chavez, Currin, Endara, Foster
Rodgers - Tamez, White, Grier, Kumar, Laidlaw
Williams - Nobles, O'Neil, Powell, Suntharam, Taylor |
8
10/13 |
Ch. 14 Collection Procedures (from p. 417 - XII.
Outsourcing the Collection Function to End of Chapter)
 |
9
10/20 |
Ch. 15 Partnership and S Corporation Audit and
Litigation Procedures
Ch. 16 Overpayments |
10
10/27 |
Ch. 17. Miscellaneous
Case Assignments
Compaq Computer Cases (Tax Court and Fifth Circuit)- All
students |
11
11/3 |
Function at JAT House
|
12
11/10 |
Ch. 18 Trends in Enforcement Efforts
Ch. 19 Ethics, Malpractice and Tax Procedure
Total text pages - 9 (but see extra reading materials)
Read the two articles in the class materials file -- All Students.
Richardson, Audit Avoidance via Intent
Modification -- Is Fred Corneel onto Something ... or Not, 2001 TNT
131-93
Corneel, Audit Avoidance: A Response to David
Richardson, 2001 TNT 131-91
Also read the excerpt from an article I prepared which can be
downloaded here.
These excerpts track the scenario in the articles and present some other
related materials. |
13
11/17 |
1. Injunctions in Tax Litigation (pp.
370-372). I want to address injunctions in tax litigation because, as some
of you may know, one of the issues the Supreme Court has agreed to address
in the health case in which it just accepted certiorari is whether the Tax
Injunction Act ("TIA") (Section 7421) precludes consideration of the
challenges to the mandate prior to the assessment of penalties. We will
discuss the TIA so that you can be fully knowledgeable about the general
background (if not the specific instance arising in the health care act, if
it arises there at all).
2. Read the Principal Life Insurance
Case which I have emailed to the class. If you did not get a copy,
email me and request one. In some ways, this is an
esoteric case, but it pulls together certain key concepts, including the
ubiquitous Section 6213(a), the so called prohibition on assessment that has
been a standard theme in the class. I encourage each student to work
their way through this gem of a decision. This is a specific
assignment and therefore may be a subject for the examination. |
14
12/1 |
Review Class |
| |
Tax Procedure Exam - |
| Book Page Number |
Correction |
Comment |
| 170 (at par. B.1.) |
The overpayment rate is 4%. |
The book is in error in stating that it is 10% |
| 171 (at par. B.2.b.) |
Should be 2010 rather than 2008 in line 3. |
|
| 371-372 (at par. VII.A.) |
The IRS claims the right to setoff a refund against an
unassessed tax liability in some cases. Accordingly, the question in
Example 2 could be answered Yes instead of No. |
Normally, the IRS can only take enforced collection measures
against assessed tax liabilities. Indeed, the use of the
administrative enforcement collection measures in Section 6331 ff. require
an assessment. However, the right to setoff is in Section 6402(a) and
the text of Section 6402(a) does not require a predicate assessment.
Accordingly, at least where the IRS has issued a notice of deficiency making
a claim of an additional, as yet unassessed, tax liability, the IRS claims
that it can make the setoff. The IRS has prevailed in one case. |
| |
|
|
To the Tax Procedure Class:
I had the following question from a student:
“I had a quick question I wanted to ask before the exam. When we talk about
tax refunds and interest on over payments does the statute of limitations
run from the actual filing date, like in your exam March 15th, or do we
consider it from April 15th? I wasn't sure if the deemed filing date applied
to refunds and interest on overpayments.”
If I understand the question correctly, the question is when the statute of
limitations begins to run. Just to reprise the rules, the general rule is
that statute runs from the filing date. Two special rules modify that
general rule as follows:
(i) returns filed before the original due date are deemed filed on the
original due date. Hence an individual return due April 15 is deemed filed
on April 15 if filed before April 15. Calendar year corporate returns are
due March 15, so if they are filed prior to March 15, they are deemed filed
on March 15.
(ii) returns timely mailed to the IRS and received after either original due
date or, if an extension was requested, the extended due date are deemed
filed on the date of mailing.
Now, as to interest, interest on overpayments normally accrues from the
original due date of the return as to overpayments actually paid in by the
original due date. This is subject to the 45 day grace period where no
interest is paid if the refund is made within 45 days of (a) the original
due date of the return for a return filed on or before the original due date
of the return, or (b) the date of filing a return after the original due
date. [Note this has been corrected slightly from what is in your book at p.
170 (nonfootnoted version of the book).]
If this answer does not answer the concerns the student or any of you may
have, please let me know and I will try to respond. I need to hear from you
by 12 noon today simply to have a cut off point. Remember, the examination
is tomorrow.
I wish you the best. It has been my honor and privilege to teach and learn
with you.
Jack Townsend
-----------------------
In a follow through question to the one addressed above, a student asked:
“I could not tell from your email if the two special rules modify the date
of filing with regards to the statute of limitation on refunds?”
My answer is:
The two special rules affect the statute of limitations on refund claims
because they establish the starting date – a deemed starting date --- for
the limitations period to run. Again, the first special rule says returns
filed before the original due date are deemed filed on the original due
date. For example, a 1040 return filed on March 1 is deemed filed on April
15. The statute of limitations on deficiencies and overpayments starts April
15. The second special rule says that returns mailed timely (either before
the original due date or during the extension period) but actually received
by the IRS and filed untimely (either after the original due date or the
extended due date) are deemed filed on the date of mailing. For example, a
1040 mailed to the IRS on October 1, 2010 during the extension period and
received and actually filed by the IRS on November 1 (16 days after the
extended due date of October 15) are deemed filed on October 1, the date of
mailing. The statute of limitations on deficiencies and overpayments starts
to run on October 1, 2010, the deemed file date. (The same analysis would
apply to a 1040 filed before the original due date and received and filed by
the IRS after the original due date.)