Using Administrative Law to Challenge IRS Determinations

Taxpayers who are in a dispute with the IRS should not forget to use all possible arguments and defenses available to them, including those under administrative law. These arguments have not been used often in the past, but they can be very helpful in certain situations. Both taxpayers and the IRS can benefit from finding new and better arguments in tax cases, but only taxpayers can benefit from administrative law arguments. It is up to taxpayers’ lawyers to bring up these arguments and make sure they are considered. However, it can be challenging for lawyers to find the time and resources to learn and use administrative law arguments because tax law already takes up a lot of their time and attention. Tax law and administrative law are like oil and water – they don’t always mix well. Tax law is more black and white, while administrative law is more flexible. However, in recent years, administrative law has become more important in tax cases. This means that lawyers dealing with tax issues need to understand administrative law as well. The Supreme Court has even said that a uniform approach to administrative review is important, so tax lawyers can’t ignore administrative law anymore. This means that to effectively help clients with tax issues, lawyers need to know about administrative law too. There are a lot of ways that lawyers can be creative in challenging tax rules. For example, they can try to challenge a rule before the IRS even tries to enforce it. This is different from how things usually work in tax cases, but it can still be possible to do. However, there are some legal rules that make it harder to do this in tax cases compared to other types of cases. So, it’s a bit trickier, but still possible. In recent years, more cases have been brought against tax regulations under general judicial review laws instead of tax laws. This has led to confusion and some pre-enforcement legal action being allowed. The Treasury claims it doesn’t always have to ask for public comments when creating tax regulations, but this is wrong. Many regulations may not have followed the rules, making them invalid. This issue has been brought up in recent cases and may continue to be challenged in the future. RegFlex requires government agencies to consider how new rules will affect small businesses. The Treasury often includes a certification saying the rules won’t hurt small businesses, but some people think they don’t do a good job. A court case tried to challenge a rule under RegFlex, but the court said it only applies to direct impacts on small businesses, not indirect ones. We’ll have to wait and see if other courts agree and if more challenges are successful. Simply put, the Arbitrary and Capricious standard allows for challenges to government agency actions, including IRS regulations and determinations, if they are found to be unreasonable or not in line with the law. This standard can be used by taxpayers to challenge IRS regulations and decisions if they believe important issues were ignored or not properly explained. The IRS engages in adjudication when making determinations, and taxpayers have the right to challenge these decisions if they believe they are not properly justified. The IRS sometimes makes decisions that are not well explained or inconsistent with previous rulings. This can lead to challenges in court. Some courts have ruled against the IRS for not giving good enough explanations for their decisions. There is also debate about whether the IRS should be held to their previous positions, even if they have not officially changed them. This could lead to more legal battles in the future, especially around the rules for how government agencies can change their positions. In tax law, administrative law is becoming more important in legal battles against the IRS. If lawyers don’t use administrative law to challenge the IRS, they might not be fully prepared. This means understanding how federal agencies create and enforce rules. It’s a key tool for taxpayers to fight unfair treatment by the IRS. The text discusses different legal cases and laws related to tax and administrative law.

Source: https://www.floridabar.org/the-florida-bar-journal/using-administrative-law-to-challenge-irs-determinations/