Bryan Camp has published an article on the TaxProf Blog, titled “Lesson From The Tax Court: Failure To Understand Issue Preclusion May Trigger Sanctions”, which helps readers to understand the difference between issue preclusion and claim preclusion. The article begins as follows:
Some people just cannot take no for an answer. That is one of the reasons §6673 permits the Tax Court to impose a penalty of up to $25,000 on taxpayers who stubbornly present either frivolous or groundless arguments.
It is sometimes difficult, however, to distinguish a “no” from a “not now.” Karson C. Kaebel v. Commissioner, T.C. Memo. 2021-109 (Sept. 9, 2021) (Judge Halpern), teaches a good lesson about issue preclusion, which is the important legal doctrine that tells us when “no” means “no.” The taxpayer there asked the Tax Court to make the IRS take back a certification it had sent to the State Department. But the reasons the taxpayer offered had already been rejected by both the Tax Court and the Court of Appeals in prior cases brought by the taxpayer about different subjects. Judge Halpern explains why those no’s were really and truly no’s. He also considers imposing §6673 penalties for the taxpayer’s intransigence. So this will be a good lesson to learn, if for no other reason than to avoid penalties!
Click here to see the full article: “Lesson From The Tax Court: Failure To Understand Issue Preclusion May Trigger Sanctions”.
Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.