TaxProf Blog – Lesson From The Tax Court: The Perils of Stipulations (June 7, 2021)

Bryan Camp has published an article on the TaxProf Blog, titled “Lesson From The Tax Court: The Perils of Stipulation”, which discusses the outcomes of. Donald Bailey and Sandra M. Bailey v. Commissioner, T.C. Memo. 2021-55 (May 10, 2021) (Judge Pugh) with distinguished emphasis on the critical role of stipulations in the Tax Court’s decisional process. The article begins as follows:

Tax Court procedure marches to a different beat from other federal courts.  For example, when a taxpayer files a Petition contesting a Notice of Deficiency (NOD) the taxpayer cannot voluntarily dismiss the case the way litigants can do in federal district court.  See Lesson From The Tax Court: The Hotel California Rule, TaxProf Blog (Nov. 12, 2018).  And it is not just pro se litigants who get tripped up, which is to be expected despite the heroic guidance given by the Tax Court on its webpage.  Experienced practitioners sometimes goof this up as well.

The recent case of Donald Bailey and Sandra M. Bailey v. Commissioner, T.C. Memo. 2021-55 (May 10, 2021) (Judge Pugh), teaches an important lesson about the crucial role of stipulations in the Tax Court’s decisional process: litigants must have a firm grasp of their case very early, or risk stipulating themselves into defeat as the taxpayers did in this case.  Details below the fold.

Click here to see the full article: “Lesson From The Tax Court: The Perils of Stipulations”

Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal

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