Tax News

CCH (cch.taxgroup.com) reports:

  An allegation that a fraud was perpetrated on the Tax Court in a deficiency action could not be raised for the first time in a subsequent collection action, but should have been raised in a motion to vacate the decision entered in the case in which the fraud occurred.

  The taxpayers were investors in a tax shelter partnership. Their deficiency cases were determined in accordance with a test case ( G.E. Krause , Dec. 48,383, aff'd sub nom. R.A. Hildebrand , CA-10, 94-2 USTC ¶50,305) in which the tax losses generated by the shelter at issue were disallowed. Their allegation that a fraud was perpetrated on the court in the test case could have been raised in the test case or in one of the other deficiency cases that were controlled by the test case.

  Since the taxpayers had the opportunity to raise the allegation in their deficiency actions, the IRS Appeals office and the Tax Court were precluded from considering this means of challenging their underlying tax liability in a collection action.

S.G. Stroube, 130 TC No. 15, Dec. 57,470

Other References:

 
Code Sec. 6320

  CCH Reference - 2008FED ¶38,184.50

  Tax Research Consultant

  CCH Reference - TRC IRS: 48,056.25