Legal Question in Tax Law in Florida

Re: Is IRS and other courts bound by this case?

What court decided the case? Save me a wee bit of trouble: what proposition within the case do you hope that it provides precedent for?

I just settled a case with the IRS and they had to pay up against their will.

There are several issues for precedent: what the issue is, what jurisdiction(s) the court involved covers (though sister jurisdictions can be persuasive in a new suit of another jurisdiction), and whether the case or a case following it's precepts has been "overruled" (and thus overturned). The latter question requires "Shepardizing" the case: checking all cases subsequent which have referred to it and seeing if those cases overturn it, concur, dissent, or whatever. I can do it at some possible expense on my computer through my online legal service Lexis, or one can go to a law library and ask for help using "Shepards" books to see what the Shepards people think. Shepards books at least identify the cases that have come along since your case and referred back to it; you can then read some of those cases and try to get a concensus, but that's really the skill of a trained professional ... a lawyer. (Are you one?)

Again, though, please write directly and tell me what you think / hope it says and I may be able to give you a better answer. I'm [email protected] (or telephone me at (617) 527-0050).

Re: Is IRS and other courts bound by this case?

Several issues here. First, as another reply observes, one would have to verify whether the case was still "good law" -- i.e., whether (1) subsequent cases in the Tax Court overruled it as precedent, (2) the IRS acceded to the holding or continues to contest it (which they can do in any other jurisdiction), (3) whether the various federal Courts of Appeal have upheld or rejected the holding in the case.

Also, with a case this old, one would have to examine the applicable IRC provisions at issue and ascertain whether the statute has been amended since 1952, and, if so, whether there was an intent in Congress to change the law as originally interpreted by the Tax Court case.

With this kind of legal issue, you should consult a tax lawyer (rather than an accountant).