Five Common IRS Legal Issues Facing Taxpayers Today

There are many reasons why an individual may find himself in the United States Tax Court, ranging from individuals who failed to document their expenses, to individuals who failed to report their income.

Here are some of the most common types of legal issues that are found in Tax Court.


The IRS typically imposes a penalty for underpayments. As an example, the IRS may seek a payment when an individual fails to report proceeds from a home sale. Another common legal issue that tends to get resolved in Tax Court is when a person fails to keep accurate records that substantiate his or her income.

Both of these issues can be avoided when the individual understands his options and what he needs to do to properly document his expenses and income.

Business Expenses

Another common IRS legal issue is related to business expenses. Typically, an individual is unable to show his receipts to justify expenses or deductions. Another problem that commonly occurs with businesses is the comingling of business assets with personal assets.

Income Inaccuracies

The next issue that tends to be litigated is the failure of taxpayers to report their income. The issues that tend to appear are related to unreported settlements, cancellations of debt and failures to accurately report wages.

Charitable Contributions

One of the ways that individuals find themselves in tax court occurs when the IRS disagrees with an individual about a charitable contribution. In most situations, an individual is allowed to deduct donations that are made to nonprofits, but there are exceptions to this general rule.

Relief from a Spouse’s Tax Deficiency

Typically, when married couples file their tax returns, they agree to be jointly and severally liable for the taxes that are due. This means that the IRS may seek any amount due from either party.

When an individual finds herself in this situation, she may seek relief from her spouse’s tax liabilities.

These types of issues can cause a great deal of distress for individuals and their families.

It is important to speak with an experienced tax attorney who understands these issues and who understands the types of agreements that can be made on your behalf. It is important to quickly seek help to handle tax issues properly and to do the most that you can to protect your assets.

The attorneys at the Scammahorn Law Firm in Dallas have many years experience in advising individuals and business regarding their tax obligations. We invite you to call us today at (903) 595-1000 to discuss your particular IRS legal issues.