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Asher Evans
Asher Evans

Master the Basics of Tax Administration and Enforcement with Tax Procedure and Tax Fraud in a Nutshell


Tax Procedure And Tax Fraud In A Nutshell (Nutshells) Book Pdf




Tax law is one of the most complex and dynamic areas of law that affects almost every aspect of our lives. Whether you are an individual taxpayer, a business owner, a tax professional, or a student, you need to have a basic understanding of how the tax system works and what are the consequences of violating the tax laws. In this article, we will review a book that provides a concise and comprehensive overview of tax procedure and tax fraud in the United States. The book is called Tax Procedure And Tax Fraud In A Nutshell (Nutshells) by Camilla E. Watson and Richard L. Doernberg, published by West Academic Publishing in 2018. We will summarize the main topics covered in the book, highlight its strengths and weaknesses, and explain why it is a valuable resource for anyone interested in learning more about tax procedure and tax fraud.




Tax Procedure And Tax Fraud In A Nutshell (Nutshells) Book Pdf



Introduction




The book is part of the Nutshells series, which are designed to provide a clear and concise explanation of the essential aspects of various legal subjects. The book consists of four chapters, each covering a major area of tax procedure and tax fraud: tax administration and enforcement, tax crimes and penalties, tax litigation and appeals, and tax ethics and professional responsibility. The book also includes a table of cases, a table of statutes, a table of regulations, an index, and a glossary of terms. The book is written in an accessible and engaging style, using examples, diagrams, tables, charts, and hypothetical scenarios to illustrate the concepts and rules. The book is intended for students, practitioners, professors, researchers, policymakers, journalists, or anyone who wants to gain a better understanding of how the tax system operates and how to avoid or deal with tax problems.


What is tax procedure and tax fraud?




Tax procedure refers to the rules and processes that govern how the Internal Revenue Service (IRS) administers and enforces the federal tax laws. It includes topics such as how taxpayers file their tax returns, how the IRS audits and examines taxpayers' compliance with the tax laws, how the IRS collects taxes from delinquent taxpayers, how taxpayers can challenge the IRS decisions through administrative appeals or judicial review, and how taxpayers can resolve their tax disputes through settlements or compromises.


Tax fraud refers to the intentional violation of the tax laws by taxpayers or their representatives with the purpose of evading or reducing their tax liability. It includes crimes such as tax evasion, filing false or fraudulent tax returns, making false statements or perjury, obstructing justice or conspiring to defraud the IRS, and aiding or abetting others in committing tax fraud. Tax fraud can result in civil penalties, criminal penalties, or both, depending on the nature and severity of the offense.


Why is it important to understand tax procedure and tax fraud?




Understanding tax procedure and tax fraud is important for several reasons. First, it can help taxpayers comply with their tax obligations and avoid mistakes or errors that could lead to penalties or audits. Second, it can help taxpayers protect their rights and interests in case they face any tax problems or disputes with the IRS. Third, it can help taxpayers prevent or detect tax fraud by themselves or others and report it to the IRS or other authorities. Fourth, it can help taxpayers appreciate the role and function of the IRS and the tax system in general and the challenges and issues they face in administering and enforcing the tax laws.


What are the main topics covered in the book?




The book covers four main topics: tax administration and enforcement, tax crimes and penalties, tax litigation and appeals, and tax ethics and professional responsibility. Each topic is divided into several subtopics that provide a detailed explanation of the relevant rules, concepts, principles, procedures, cases, and examples. The following is a brief summary of each topic and subtopic:


Chapter 1: Tax Administration and Enforcement




This chapter explains how the IRS administers and enforces the tax laws. It covers the following subtopics:


How does the IRS administer and enforce the tax laws?




IRS structure and functions




This subtopic describes the organizational structure and functions of the IRS, which is a bureau of the Department of the Treasury. It explains the roles and responsibilities of the IRS Commissioner, the Chief Counsel, the National Taxpayer Advocate, and the various divisions and offices within the IRS. It also discusses the sources of authority and guidance that the IRS issues to interpret and apply the tax laws, such as regulations, rulings, notices, announcements, publications, forms, instructions, manuals, etc.


Tax return filing and processing




This subtopic explains the rules and procedures that taxpayers must follow to file their federal income tax returns. It covers topics such as who must file a tax return, when and where to file a tax return, what forms and schedules to use, how to report income and deductions, how to calculate tax liability and credits, how to pay taxes due or claim refunds owed, how to amend or correct a tax return, how to request an extension of time to file a tax return, etc.


Tax audits and examinations




This subtopic describes how the IRS audits and examines taxpayers' compliance with the tax laws. It covers topics such as how the IRS selects taxpayers for audit, what types of audits are conducted (e.g., correspondence audit, office audit, field audit), what are the rights and obligations of taxpayers and IRS agents during an audit, what are the methods and techniques used by the IRS to verify taxpayers' income and deductions (e.g., information returns, third-party contacts, summons), what are the outcomes of an audit (e.g., no change, agreed adjustment, unagreed adjustment), etc.


Tax collection and liens




This subtopic explains how the IRS collects taxes from delinquent taxpayers. It covers topics such as how the IRS assesses taxes (i.e., records them as a debt owed by the taxpayer), how the IRS notifies taxpayers of their tax liability (e.g., notice of deficiency, notice of demand), how the IRS imposes penalties and interest on unpaid taxes (e.g., failure to file penalty, failure to pay penalty), how the IRS enforces collection actions (e.g., levy, lien), what are the remedies available to taxpayers to stop or challenge collection actions (e.g., installment agreement, offer in compromise), etc.


Chapter 2: Tax Crimes And Penalties




This chapter explains what are the types of tax crimes and penalties that taxpayers or their representatives can face for violating the tax laws. It covers the following subtopics:


What are the types of tax crimes and penalties?




Tax evasion and fraud




This subtopic defines what constitutes tax evasion and fraud under section 7201 of the Internal Revenue Code (IRC). It explains that tax evasion is a felony that involves willfully attempting to evade or defeat any tax imposed by law. It also explains that fraud is an element of tax evasion that requires proof of specific intent to deceive or mislead the IRS. It discusses some of tax evasion and fraud (e.g., understating income, overstating deductions, concealing assets, using false documents or identities, etc.). It also discusses some of the defenses that taxpayers can raise against tax evasion and fraud charges (e.g., good faith, reliance on advice, mistake, etc.).


Failure to file or pay taxes




This subtopic defines what constitutes failure to file or pay taxes under sections 7203 and 7202 of the IRC. It explains that failure to file is a misdemeanor that involves willfully failing to file a tax return or supply information required by law. It also explains that failure to pay is a misdemeanor that involves willfully failing to pay or collect any tax required by law. It discusses some of the factors that affect the prosecution and sentencing of these offenses (e.g., amount of tax due, number of years involved, reasons for noncompliance, etc.). It also discusses some of the remedies available to taxpayers to avoid or reduce these penalties (e.g., voluntary disclosure, reasonable cause, abatement, etc.).


False statements and perjury




This subtopic defines what constitutes false statements and perjury under sections 7206 and 7207 of the IRC. It explains that false statements is a felony that involves willfully making or subscribing any false statement or document under penalties of perjury in connection with any tax matter. It also explains that perjury is a felony that involves willfully testifying falsely under oath in any proceeding relating to any tax matter. It discusses some of the examples of false statements and perjury (e.g., falsifying income or expenses, claiming false dependents or credits, lying to IRS agents or courts, etc.). It also discusses some of the defenses that taxpayers can raise against false statements and perjury charges (e.g., lack of materiality, lack of willfulness, recantation, etc.).


Obstruction of justice and conspiracy




This subtopic defines what constitutes obstruction of justice and conspiracy under sections 7212 and 371 of the IRC. It explains that obstruction of justice is a felony that involves corruptly endeavoring to obstruct or impede the due administration of the tax laws. It also explains that conspiracy is a felony that involves conspiring with one or more persons to commit any offense against the United States or to defraud the United States in any manner or for any purpose. It discusses some of the examples of obstruction of justice and conspiracy (e.g., destroying or concealing records, intimidating or influencing witnesses, bribing or threatening IRS agents or judges, etc.). It also discusses some of the defenses that taxpayers can raise against obstruction of justice and conspiracy charges (e.g., lack of corrupt intent, lack of agreement, withdrawal from conspiracy, etc.).


Chapter 3: Tax Litigation And Appeals




This chapter explains how taxpayers can challenge the IRS decisions through administrative appeals or judicial review in federal courts. It covers the following subtopics:


How can taxpayers challenge the IRS decisions?




Administrative appeals




mediation, arbitration, etc.), what are the outcomes of an administrative appeal (e.g., agreement, disagreement, partial agreement, etc.), and what are the advantages and disadvantages of an administrative appeal (e.g., cost, time, finality, confidentiality, etc.).


Judicial review in federal courts




This subtopic describes the process and procedures for seeking and obtaining a judicial review in federal courts. It explains that a judicial review is a formal and adversarial way of resolving tax disputes by filing a lawsuit against the IRS. It covers topics such as who can seek a judicial review (e.g., taxpayers who receive a notice of deficiency, notice of determination, notice of claim disallowance, etc.), how to seek a judicial review (e.g., filing a petition or a complaint), what are the roles and responsibilities of the IRS Chief Counsel and the Department of Justice, what are the methods and techniques used by the federal courts to resolve tax disputes (e.g., trials, motions, discovery, appeals, etc.), what are the outcomes of a judicial review (e.g., judgment, settlement, dismissal, etc.), and what are the advantages and disadvantages of a judicial review (e.g., cost, time, finality, publicity, etc.).


Statute of limitations and burden of proof




This subtopic explains the rules and principles that govern the statute of limitations and the burden of proof in tax matters. It explains that the statute of limitations is a time limit within which the IRS can assess or collect taxes or taxpayers can file or amend tax returns or claim refunds. It covers topics such as what are the general and special rules for determining the statute of limitations (e.g., three years, six years, unlimited period), what are the exceptions and extensions that can affect the statute of limitations (e.g., fraud, agreement, waiver, tolling), and what are the consequences of violating or expiring the statute of limitations (e.g., barred assessment or collection or refund). It also explains that the burden of proof is a legal obligation to prove or disprove a fact or an issue in dispute. It covers topics such as what are the general and special rules for allocating the burden of proof (e.g., taxpayer bears the burden except for certain issues), what are the factors and standards that affect the burden of proof (e.g., preponderance of evidence, clear and convincing evidence), and what are the consequences of meeting or failing to meet the burden of proof (e.g., prevailing or losing on an issue).


Settlements and compromises




approval, etc.), and what are the advantages and disadvantages of settlements and compromises (e.g., cost, time, finality, certainty, etc.).


Chapter 4: Tax Ethics And Professional Responsibility




This chapter explains what are the ethical and professional standards for tax practitioners who represent taxpayers before the IRS or in federal courts. It covers the following subtopics:


What are the ethical and professional standards for tax practitioners?




Circular 230 and other IRS regulations




This subtopic describes the rules and regulations that the IRS issues to regulate the conduct and practice of tax practitioners. It explains that Circular 230 is a set of rules that governs the practice of attorneys, certified public accountants (CPAs), enrolled agents, enrolled actuaries, enrolled retirement plan agents, and other persons who practice before the IRS. It covers topics such as who is subject to Circular 230, what are the duties and restrictions of Circular 230 practitioners (e.g., due diligence, competence, confidentiality, conflicts of interest, etc.), what are the sanctions and penalties for violating Circular 230 (e.g., censure, suspension, disbarment, monetary penalty), and how to comply with Circular 230 (e.g., written advice, disclosure statements, consent forms, etc.). It also explains that other IRS regulations that affect tax practitioners include section 6694 (penalties for understatement of taxpayer's liability by tax return preparer), section 6695 (penalties for failure to comply with certain requirements by tax return preparer), section 6700 (penalties for promoting abusive tax shelters), section 6701 (penalties for aiding and abetting understatement of tax liability), etc.


AICPA and state CPA rules




quality control, peer review, etc.). It also explains that state CPA rules are the rules and regulations that each state board of accountancy issues to license and regulate CPAs within its jurisdiction. It covers topics such as what are the requirements and procedures for obtaining and maintaining a CPA license in each state, what are the continuing education and professional development requirements for CPAs in each state, what are the disciplinary actions and sanctions that state boards can impose on CPAs for misconduct or malpractice, and how to comply with state CPA rules (e.g., reporting, cooperation, notification, etc.).


ABA and state bar rules




This subtopic describes the rules and standards that the American Bar Association (ABA) and state bar associations issue to regulate the conduct and practice of attorneys. It explains that the ABA is a national voluntary organization that represents attorneys and sets ethical and professional standards for its members. It covers topics such as what are the ABA Model Rules of Professional Conduct and Model Code of Judicial Conduct, what are the principles and rules of conduct for ABA members (e.g., competence, diligence, communication, confidentiality, conflicts of interest, etc.), what are the best practices and guidance for ABA members in providing tax services (e.g., tax opinions, tax shelters, tax advocacy, etc.), and how to comply with ABA standards (e.g., documentation, quality control, peer review, etc.). It also explains that state bar rules are the rules and regulations that each state bar association issues to license and regulate attorneys within its jurisdiction. It covers topics such as what are the requirements and procedures for obtaining and maintaining an attorney license in each state, what are the continuing education and professional development requirements for attorneys in each state, what are the disciplinary actions and sanctions that state bars can impose on attorneys for misconduct or malpractice, and how to comply with state bar rules (e.g., reporting, cooperation, notification, etc.).


Sanctions and penalties for misconduct




harm and benefit of violation, etc.), what are the procedures and processes for imposing sanctions and penalties (e.g., investigation, hearing, appeal, etc.), and what are the consequences and effects of sanctions and penalties (e.g., reputation, income, license, etc.).


Conclusion




In conclusion, this article has reviewed a book that provides a concise and comprehensive overview of tax procedure and tax fraud in the United States. The book is called Tax Procedure And Tax Fraud In A Nutshell (Nutshells) by Camilla E. Watson and Richard L. Doernberg, published by West Academic Publishing in 2018. The book covers four main topics: tax administration and enforcement, tax crimes and penalties, tax litigation and appeals, and tax ethics and professional responsibility. The book is written in an accessible and engaging style, using examples, diagrams, tables, charts, and hypothetical scenarios to illustrate the concepts and rules. The book is intended for students, practitioners, professors, researchers, policymakers, journalists, or anyone who wants to gain a better understanding of how the tax system operates and how to avoid or deal with tax problems. The book is a valuable resource for anyone interested in learning more about tax procedure and tax fraud.


FAQs




Here are some frequently asked questions about the book and the topic:


Q: How can I get a copy of the book?




A: You can order the book online from Amazon or other online retailers. You can also check if your local library or bookstore has a copy of the book. Alternatively, you can access the book online through West Academic Digital Library or other online databases.


Q: How can I learn more about the authors?




A: You can visit their websites or profiles on their respective institutions. Camilla E. Watson is a professor of law at the University of Georgia School of Law. Richard L. Doernberg is a professor emeritus of law at Emory University School of Law.


Q: How can I find more books or articles on tax procedure and tax fraud?




HeinOnline, LexisNexis, Westlaw, etc. You can also browse or search for more books or articles on tax procedure and tax fraud using online platforms or journals such as SSRN, Tax Notes, Journal of Taxation, Tax Lawyer, etc.


Q: How can I find a tax practitioner who can help me with my tax issues?




A: You can find a tax practitioner who can help you with your tax issues by using online directories or referrals such as IRS Directory of Federal Tax Return Preparers, AICPA Find a CPA, ABA Find Legal Help, etc. You can also ask for recommendations from your friends, family, colleagues, or other trusted sources.


Q: How can I avoid or prevent tax problems or disput


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