TAX PRACTICE AND PROCEDURE
SPRING 2007
SECTIONS COVERED BELOW:
The Instructor
The Course, including assignments
Organization of Course by Units and Chapters
Use of Class Time
Contact & Communication
I have been a member of the law firm of Sirote & Permutt, P.C., in Birmingham,
Alabama, for over 28 years, and was Managing Partner of the firm from 1992-1999. I
received a B.S. in Engineering, University of Alabama, 1972; a J.D., University of
Alabama, 1975 (Managing Editor, Alabama Law Review); and an LL.M., in Taxation,
New York University, 1976 (Graduate Editor, Tax Law Review).
Following tax school, I served as law clerk to Judge Irene F. Scott of the United
States Tax Court from 1976-1978 (you can find a plaque in her honor in the Library
among the tax materials). I have taught regularly on tax practice and procedure for the
University of Alabama School of Accounting (1984-2004), and for the School of Law
(beginning in 1980 and when taught in north Alabama thereafter). I am a former
committee chairman of the Court Procedure Committee of the American Bar Association Tax
Section, and for 4 years served as ABA liaison to the IRS Southeast Region. I have served as
Chair of the Tax Section (1986-1988) and of the Lawyers Helping Lawyers committee
(2003-2005) of the Alabama State Bar.
My practice involves primarily substantial tax controversies with federal and state
tax authorities, both in administrative proceedings and litigation in federal and state
courts. I have also handled business, corporate and shareholder controversies in federal
and state courts, and some corporate tax, business and estate planning.
I have been married for 36 years to my wife Becky. Our daughter Daley, a former
loan officer, is living in Richmond with her husband and my new (12/20/06)
granddaughter Harper Grace King. My son Bradley is a 2L at Alabama. I am originally
from Tuscaloosa. My father practiced law there and was the Tuscaloosa City Court
Judge for 28 years. My brothers Chuck Malone and Bobby Wooldridge are, respectively,
a Circuit Court Judge and the County Public Defender in Tuscaloosa County. I have
been involved heavily over the years with the United Way, United Cerebral Palsy, and
the Homewood City Schools Foundation. I also spend a great deal of time with the
Alabama State Bar’s Lawyers Helping Lawyers Committee and the Alabama Lawyer
Assistance Program.
THE COURSE: TAX PRACTICE AND PROCEDURE
This course will be taught based upon the textbook Civil Tax Procedure,
Richardson, Borison and Johnson (Matthew Bender 2005). The content of the course
will be similar to that of previous classes I have taught, but the organization and teaching
method will be adjusted to take advantage of the textbook.
The reading assignments for each class will be that located at the beginning of
each chapter in the textbook. These include citations to the Code, regulations, rulings,
forms, and some other materials. I will also add a few items to the reading from time to
time, and will announce those as we proceed. You may ignore any references to Florida
Bar Rules. Much of the reading material is in the Code and IRS regulations. Other items
are often available in the Library or on the internet. For instance:
Code
http://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26.html
Final
Regulati
ons
http://www.irs.gov/taxpros/article/0,,id=98137,00.html#26cfr
http://www.gpoaccess.gov/cfr/retrieve.html
Propose
d
Regulati
ons
http://www.regulations.gov/fdmspublic/component/main
Forms
and
Publicat
ions
http://www.irs.gov/formspubs/lists/0,,id=97817,00.html
Electron
ic
reading
room
http://www.irs.gov/foia/article/0,,id=110353,00.html
OR
This particular site is the IRS “electronic reading room.” It contains links to
the Internal Revenue Bulletin (and thus Revenue Rulings), proposed and final
regulations, IRS Notices, “coordinated issues” of both Appeals and the
LMSB Division, the Internal Revenue Manual, and a large volume of other
items you will see cited from time to time
ABA
The most recent ABA promulgation concerning standards of tax practice is
Statement 2001-1, found at http://www.abanet.org/tax/groups/stp/stmt001.html. However, the ABA has issued other more formal Opinions on these
issues, including Opinions 314, 316, and 85-352. These are unfortunately not
on the ABA site without charge.
AICPA
The AICPA has a very good website with many substantive tax materials
available free. These include a mass of secondary material on substantive
and procedural issues. The entry point is http://tax.aicpa.org/
Stateme
nts on
Standar
ds for
Tax
Practice
http://tax.aicpa.org/Resources/Professional+Standards+and+Ethics/Statement
s+on+Standards+for+Tax+Services/
The revisions and amplifications of the Statements are also found here.
Circular
230
http://tax.aicpa.org/Resources/Professional+Standards+and+Ethics/Treasury+
Department+Circular+No.+230/, accessed at the AICPA site
IRS “eNews”
You might consider subscribing to the free IRS newsletter. The link is: eNews Subscriptions. Items include notices and text of new IRS Revenue
Procedures and Notices, as well as organizational information and tax
practitioner tips. It is for tax professionals, and not taxpayers.
I will also add a unit not covered by the textbook, covering the Standards and
Ethics of Tax Practice. This new unit will cover the rules and regulations governing tax
practice and the ethical and legal standards imposed on tax practitioners. This will
involve “Circular 230,” the opinions on these matters from the ABA and AICPA (cited
above), and some of the penalties asserted by the IRS, both on taxpayers and on
practitioners, for positions on tax returns that do not meet certain minimum standards.
Finally, I will organize the units of material in a somewhat different order than
presented in the textbook. I think a different order of presentation makes the material
more understandable. But the changes are not substantial.
The first class, on Monday, January 8, 2007, at 5:30 p.m. will cover Chapter 1 of
the textbook.
The second class on Thursday, January 11, will cover the material in Chapters 2
and 3 of the textbook. This material may run over to the next class meeting on the 15th.
Following those classes and chapters, we will take up the unit not covered by the
book, but discussed above, Standards and Ethics of Tax Practice. It will likely require
two class periods. The reading assignment for that unit follows: ABA Opinion 85-352;
ABA Statement 2000-1; AICPA Statements on Standards for Tax Services; IRS Circular
230 (IRS regulations concerning “practice” before the IRS). Internet links to most of
these materials set forth above (I will get a copy of ABA Opinion 85-352 posted
somehow). You will also need to read IRC §§6694, 6696, 6662, 6664 & 7701(a)(36),
and regulations §§1.6694-1 through -4, 1.6662-4(d) and (e), and 1.6662-7.
The remaining units will follow the textbook, more or less, as reflected in the
table below. However, I have grouped the topics to more logically reflect the course
contents.
Organization of Course by Units and Chapters
Group
Topics and Title(s)
Chapters in
Textbook
I
Structure of Tax Administration and Sources of Tax Law
II
Reporting Obligations & Spousal Relief
2, 3
III
Standards and Ethics of Tax Practice
none
IV
Examination of Returns; Administrative Appeals; Assessment
Procedures and the Statutes of Limitation on Assessment
4, 5
V
Special Examination Issues: Examination of Partnerships and
Pass-Through Entities & Termination and Jeopardy
Assessments
6, 7
VI
Tax Court Litigation of Deficiency Determinations (including
Forum Selection)
8
VII
Overpayments & Claims for Refund and Refund Litigation
(including Statutes of Limitation on Refund Claims and
Refund Actions)
9
VIII
Mitigation of the Statutes of Limitation and Related Judicial
Doctrines
10
IX
Interest & Penalties
X
Collection, together with the Trust Fund Recovery Penalty &
Transferee/Fiduciary Liability
1
12, 11
13, 14, 15
USE OF CLASS TIME
During each class I expect to make significant use of PowerPoint slides, to aid in
presentation of the rules and procedures covered in the unit. I will make these slides
available after each class (and if possible, prior to the class). This will limit some of the
need for detailed note-taking and will allow you to concentrate on the discussion and
content during class.
The textbook is designed to support a “problem method” approach to teaching the
material. We will follow that design to the extent possible. It is somewhat of a change
from the methods that I have used predominantly in the past. The problem method
requires that students read and prepare the assignments before class in order to participate
meaningfully in the class discussion. Please act accordingly.
CONTACT & COMMUNICATION
Please feel free to contact me about any difficulties you have with the material
before class or with the discussion and problems during class. I have found that the best
way to contact me is by email, but you may try to call me as well. However, phone-tag is
a game no one enjoys, and I am frequently away from my office. I am equipped with a
Blackberry, coordinated with my office computer and email and with my office phone
line.
Phone: 205-930-5219
Email: dwooldridge@sirote.com
David M. Wooldridge
2311 Highland Avenue South
Suite 500
Birmingham, AL 35205
Also P.O. Box 55727 (35255)