New Tax Court Case Explores Boundaries of Qualified Offers to the IRS



The IRS sometimes utilizes aggressive tactics to convince taxpayers to concede cases without significant resistance. Unbeknownst to many taxpayers, they have a powerful tool for evening the proverbial playing field with the IRS: Making a so-called “Qualified Offer.” The basic notion is that if the IRS ignores or rejects a Qualified Offer, the case goes to trial, and the court ultimately rules that the taxpayer’s liability is the same as or less than the amount in the earlier Qualified Offer, then the taxpayer may recoup reasonable fees and costs from the IRS. This article describes the general rules for seeking fee recoupment with the IRS under Section 7430, explains the unique standards applicable to Qualified Offers, and analyzes a recent Tax Court case, Lewis v. Commissioner, which establishes new parameters for Qualified Offers.

 Read the full article here.

About Hale E. Sheppard
HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a Shareholder in the Tax Controversy Section of Chamberlain Hrdlicka and Chair of the International Tax Group.

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