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IRS Practice and Procedure

(TAX 510)

Introduction

This syllabus contains the Lesson Assignments for the above referenced course. This course is one of the required courses in the University's Master of Science in Taxation and Master of Laws in Taxation Programs. It has a value of 3 semester units. The course consists of twelve Lesson Assignments and a final examination.

You should take the time to carefully read this syllabus and the Student Handbook before you begin the Lesson Assignments.

The required text for this course, IRS Practice and Procedure, by Michael Saltzman is a treatise which has been cited in Supreme Court decisions. However, it is far too comprehensive for a three semester hour course. As such, we have divided each chapter into sections you are to study and sections to merely skim.

Cases have been divided in a similar manner. You will be required to read some cases in full and skim others. (“Skim” in this context means reading the Lexis^® Case Summary and Headnotes.)

In addition to meeting the statutory requirements of the California Education Code for degree granting institutions, the course has been prepared to comply with the AICPA Statement on Standards for Formal Group and Formal Self-Study Programs for 45 hours of continuing education credit. It is also designed to comply with the Statement on Standards For Formal Continuing Education Programs as promulgated by the National Association of State Boards of Accountancy (NASBA) as well as Treasury Department Circular 230, which deals with continuing education for Enrolled Agents.

The University is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors.

The University has also entered into Sponsor Agreements with the Boards of Accountancy of the states of California, Georgia, Illinois, Kentucky, New Jersey, New York, Ohio, Texas, and Washington. A similar agreement

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IRS Practice and Procedure

(TAX 510)

Introduction (Concluded)

has been entered into with the Office of the Director of Practice of the Internal Revenue Service.

The State Bar of California has approved the University as a provider of continuing legal education under Section 9 of the Minimum Continuing Legal Education Rules and Regulations. California attorneys should refer to information available from the State Bar of California for requirements and limitations under the law.

Expected Student Learning Outcomes

After completion of this course you should understand the federal income tax issues associated with:

· · The IRS as an Administrative Agency;

· · Taxpayer Access to Information;

· · Statements of IRS Position and Practice;

· · General Rules relating to Tax Returns;

· · Penalties on Income Tax Return Preparers;

· · The Privacy of Tax Returns;

· · Interest on Underpayments and Overpayments;

· · Criminal and Civil Penalties;

· · The Examination Function;

· · The Appeals Function;

· · Assessment Procedures;

· · The Criminal Investigation Function; and

· · IRS Investigatory Powers.

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IRS Practice and Procedure

(TAX 510)

Required and Optional Materials

Required Text:

IRS Practice and Procedure (Revised Second Edition – Student or Professional Edition) by Michael I. Saltzman is the text for this course. The text may be purchased through many major University bookstores or directly from the publisher.

Students ordering through the publisher (Warren, Gorham & Lamont) should carefully follow the instructions on the text order form provided by the University. Delivery to the West Coast normally takes approximately three weeks. For an additional shipping charge, students may request the book be shipped United Parcel, Second Day Delivery.

Students must also have access to the Internal Revenue Code and related Regulations. (The complete Code and Regulations are available through Lexis^â. For students preferring a printed copy, Warren, Gorham & Lamont offers a paperback version.)^.

Learning Resources

Due to the distance learning nature of the programs, the University does not maintain a library for student use. Most public and college libraries are available for public use at no charge. However, in some circumstances, students may incur library charges for certain services. Upon submission of a paid receipt and petition form, the University will reimburse students in an amount not to exceed $25.00 for library charges paid by a student.

All students enrolled in the School of Business can access the Lexis^â/Nexis^âcomputer research service through the Internet. Students are encouraged to take advantage of this valuable research tool. A Request for Lexis^â/Nexis^â Manual form is included as Exhibit "D" to the Student Handbook.

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IRS Practice and Procedure

(TAX 510)

Communications with Other Students

Due primarily to the fact no two students from the same geographical area are generally working on the same Lesson Assignment at the same time, the University has found the attempted formation of study groups to be of little practical benefit.

However, the University provides an asynchronous Student Lounge on its website for student use. You are encouraged to participate with fellow students in discussions related to University degree programs.

You may also choose to post your address, telephone number, and/or e-mail address on the website. By so doing, you will have access to similar information posted by other students.

Communications with the University

The office hours of the University are 9:00 a.m. to 5:00 p.m., Pacific Time, Monday through Friday. You have several options for contacting faculty or other student services personnel.

Mail

E-Mail

Fax

(714) 708-2082

Telephone

(714) 850-4800 (Normal School of Business faculty office hours are 10:00 a.m. to 11:30 a.m. Tuesdays and Thursdays. You may e-mail or FAX at any time.)

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University

IRS Practice and Procedure

(TAX 510)

How You Will Be Graded for This Course

Following are twelve Lesson Assignments, a Course Submission Checklist and Certification Form, and a Course Evaluation Form. The course is deemed completed when you complete the final examination.

The Lesson Assignments are weighted as follows:

Lesson Assignment # 1 (IRS as an Admin. Agency) 8%

Lesson Assignment # 2 (Taxpayer Access to Info.) 4%

Lesson Assignment # 3 (Statements of IRS Position) 8%

Lesson Assignment # 4 (Returns) 8%

Lesson Assignment # 5 (Statutes of Limitations) 16%

Lesson Assignment # 6 (Interest) 4%

Lesson Assignment # 7 (Criminal & Civil Penalties) 12%

Lesson Assignment # 8 (The Examination Function) 4%

Lesson Assignment # 9 (The Appeals Function) 8%

Lesson Assignment # 10 (Assessment Procedures) 4%

Lesson Assignment # 11 (Overpayment, Refund, etc.) 8%

Lesson Assignment # 12 (Service’s Investigatory Powers) 16%

Your grade will be influenced by the accuracy of your research and the quality of your writing. The extent of research necessary will vary from assignment to assignment. Your work product should not simply consist of quoting from the assigned text.

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University

IRS Practice and Procedure

(TAX 510)

How You Will Be Graded for This Course (Concluded)

Accreditation standards of the Distance Education and Training Council require that adequate steps be taken by an institution offering a degree program to assure that a student has personally fulfilled the course requirements stipulated by the institution. This assurance is accomplished through a proctored final examination in each subject taken at the end of each trimester.

At the time you submit the assignments for this course, you will generally be notified of the tentative grade for the course within 15 business days. The grade is tentative in that you must pass the final examination before

the grade becomes official and recorded on the student’s transcript. The final examination is graded on a credit/no-credit basis. When you pass the final

examination, the tentative grade previously awarded becomes the final grade. If you fail the examination, no credit is awarded.

The final examination for this course consists of 40 objective questions.

Final examination procedures are set forth on pages 31 through 34 of this syllabus and in the Student Handbook.

Course Completion Requirements

The course will be deemed completed only when all the following has been accomplished:

· · You have completed the twelve Lesson Assignments and they have been received by the University.

· · You have taken the course Final Examination. (See page 31.)

· · You have completed the Course Submission Checklist and Certification Form and it has been received by the University. (See page 35.)

· · You have completed the Course Evaluation Form and it has been received by the University. (See page 36.)

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University

IRS Practice and Procedure

(TAX 510)

Lesson Assignment # 1 The IRS as an Administrative Agency

Text: Study Sections 1.03 through 1.09 of the text. (Skim the remainder of the chapter.)

Internal Revenue Code: Read the following Internal Revenue Code sections:

§7402; §7421; §7422; §7430; §7442; §7453; §7454(a); §7481-§7483; §7491; §7502; §7503; §7521; §7522; §7805 (a), (b), (d) and (e); §7806; §7811; and §7852.

Cases: Skim the following:

Helvering v Taylor, 293 US 507 (1935);

Cohan v Commissioner, 39 F2d 540 (2^nd Cir 1930); and

Conforte v Commissioner, 74 TC 1160 (1980).

Lesson Assignment # 1 Questions:

Instructions: This assignment must be completed using Microsoft Word^® using the Times New Roman font, 12 point, single space, double space between paragraphs. Each page must be numbered and your last name and student number included on the upper left hand corner of each page.

Each question should be reproduced in bold italic type, followed by your answer in normal type. There is no minimum or maximum length for your answers. They should simply be sufficient to answer the questions.

1. 1. List and briefly explain three ways in which the application of administrative law to the IRS is important to tax practitioners.

2. 2. How does the scope of review of courts in tax cases differ from the scope of judicial review described in Administrative Procedures Act (“APA”) Section 706?

3. 3. What procedural safeguards and remedies applicable to all administrative agencies apply to the IRS?

4. 4. Briefly explain the advantages and disadvantages of litigating a tax case in a U.S. District Court, the Court of Federal Claims, and the Tax Court.

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University

IRS Practice and Procedure

(TAX 510)

Lesson Assignment # 1 The IRS as an Administrative Agency

(Concluded)

5. 5. Briefly explain I.R.C. §7421 and its importance.

6. 6. Briefly explain the following judicial limitations of IRS discretion:

a. a. Adherence to Precedent

b. b. Doctrine of Equality of Treatment

c. c. Compliance with Published Procedural Rules

d. d. Estoppel

e. e. Judicial Estoppel (See footnote 245)

7. 7. Explain the impact of a taxpayer executing a power of attorney.

8. 8. a. List and briefly explain the twelve duties and restrictions on practice before the IRS listed in the text.

b. Obtain a current copy of Circular 230. Explain whether any of the duties or restrictions listed in your response have been modified or expanded.

This assignment is to be submitted via one e-mail attachment sent to the Records Office (records@blanku.edu) at the conclusion of the course with the other assignments.

IMPORTANT: The subject heading of your e-mail must read TAX 510 followed by your last name and student number (Example: TAX 510, Jones, # 3500).

The Microsoft Word^® file name of the attachment must be the same as the subject heading of the email (Example: TAX 510, Jones, # 3500).

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University

IRS Practice and Procedure

(TAX 510)

Lesson Assignment # 2 Taxpayer Access to Information

Text: Study Sections 2.01; 2.02; 2.03 [2], [4] and [5]; 2.04 [1], [5] [a] of the text. (Skim the remainder of the chapter.)

Internal Revenue Code: Read the following Internal Revenue Code sections:

§6103 (a-c), (k); §6110 (a)-(d)

Cases: Skim the following:

6103 (d), (e), (h), (i), (l), (m) and (q); 6110 (e)-(h)

Lesson Assignment # 2 Questions:

1. 1. Briefly explain the Freedom of Information Act (“FOIA”).

2. 2. Briefly explain the following exceptions to FOIA.

a. a. Materials exempt by statute

b. b. (1) Inter- and Intra-agency memoranda

(2) Does this exception incorporate the privileges and protections that government lawyers typically raise in tax litigation? Explain.

c. c. Investigatory records

This assignment is to be submitted via one e-mail attachment sent to the Records Office (records@blanku.edu) at the conclusion of the course with the other assignments.

IMPORTANT: The subject heading of your e-mail must read TAX 510 followed by your last name and student number (Example: TAX 510, Jones, # 3500).

The Microsoft Word^® file name of the attachment must be the same as the subject heading of the email (Example: TAX 510, Jones, # 3500).

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University

IRS Practice and Procedure

(TAX 510)

Lesson Assignment # 3 Statements of IRS Position and Practice

Text: Study Sections 3.01; 3.02 [1], [3] and [4]; 3.03 [1], [2] and [3] [a] and [b]; 3.04 [1], [2] [a] and [d], [4], [5], [7] and [10] of the text. (Skim the remainder of the chapter.)

Cases: Skim the following:

Commissioner v South Texas Lumber Co., 333 US 496 (1948)

Chevron, U.S.A., Inc. v Natural Resources Defense Council, Inc., 467 US 837 (1984)

Lesson Assignment # 3 Questions:

1. 1. Fully explain the following types of regulations and their legal effect.

a. a. Legislative

b. b. Interpretive

c. c. Procedural

2. 2. Do Treasury Regulations apply retroactively? Explain fully.

3. 3. Briefly explain the authoritative weight of the following.

a. a. Revenue Rulings

b. b. Letter Rulings

c. c. Revenue Procedures

d. d. Technical Advice

e. e. Chief Counsel Advice

f. f. Acquiescenes

g. g. Internal Revenue Manual

h. h. Oral Communications

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University

IRS Practice and Procedure

(TAX 510)

Lesson Assignment # 3 Statements of IRS Position and Practice

(Concluded)

This assignment is to be submitted via one e-mail attachment sent to the Records Office (records@blanku.edu) at the conclusion of the course with the other assignments.

IMPORTANT: The subject heading of your e-mail must read TAX 510 followed by your last name and student number (Example: TAX 510, Jones, # 3500).

The Microsoft Word^® file name of the attachment must be the same as the subject heading of the email (Example: TAX 510, Jones, # 3500).

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University

IRS Practice and Procedure

(TAX 510)

Lesson Assignment # 4 Returns

Text: Study Sections 4.01; 4.03; 4.04; 4.05; 4.06 (exclude [3] [b]). (Skim Section 4.07)

Internal Revenue Code: Read the following Internal Revenue Code sections: §6001; §6011 (a); §6012; §6020; §6107; §6151; §6159; §6161; and §6694. Skim the following: §6013; §6015; §6061-§6065; §6163-§6167; §6401-§6407

Cases: Skim the following:

Crocker v Commissioner, 92 TC 899 (1989)

Lesson Assignment # 4 Questions: