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A brief review of the judicial system includes a discussion of which court a taxpayer should use when an administrative remedy could not be reached in an IRS audit.

A review of salient court cases includes the following topics:  

  • Reasonable compensation
  • Constructive Dividends
  • Determining what is an allowable charitable contribution deduction
  • Recognizing gain/loss from the disposition of corporate assets
  • Tax Administration issues relating to:
    • Misclassification of workers, Sec. 530 relief
    • Federal Tax Liens 
    • Imposition of various penalties, including the accuracy-related penalty, the gross valuation misstatement penalty, and the failure to file/pay penalty
    • Claims for refund

This course also discusses how to avoid/minimize common mistakes made on tax returns.

Key Course Concepts: Tax Court Cases, Reasonable Compensation, Sec. 530 Relief, Debt v Equity, Charitable Contributions, Capital Gain v Ordinary Income, Basis in S Corporation Stock, Federal Tax Liens, Valuation Misstatement Penalties, Refund Claims

Learning Objectives
  • Discover how the court system works when appealing an unfavorable IRS audit determination.
  • Explore how to determine if compensation paid to key employees is “reasonable.”
  • Recognize the importance of substantiating business deductions to avoid their disallowance and potential reclassification as constructive dividends.
  • Recognize the importance of distinguishing between capital and ordinary gains/losses.
  • Discover the requirements for claiming a charitable deduction.
  • Recognize the need for “due diligence” when classifying workers as independent contractors rather than employees.
  • Explore the role of penalties in the administration of our tax laws.
Last updated/reviewed: August 19, 2023
9 Reviews (47 ratings)

Reviews

4
Member's Profile
This course involves review of court cases centered around five or six main "themes" of corporate tax law. The professor does an excellent job highlighting some of the most important concepts in tax law.
5
Member's Profile
Course was well structured. Area is not my bailiwick so it was very interesting and informative to me.
5
Member's Profile
Very interesting cases, a good overview of issues heard by the courts
5
Anonymous Author
Nice update. Materials do a nice job of supporting the objectives.
5
Anonymous Author
interesting discussion of the judicial tax updates for 2019
5
Member's Profile
helpful and interested, good course with examples provided
4
Member's Profile
Cases were well summarized and easy to understand
4
Member's Profile
Very good update. Instructor did a good job.
5
Member's Profile
really good
Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION and OVERVIEW
  Introduction to the 2019 Judicial Tax Update5:17
  Federal Judicial System 13:10
Tax Cases
  Tax Cases - Reasonable Compensation, Constructive Dividends22:56
  Tax Cases - Debt V Equity9:08
  Tax Cases - Other Expenses14:28
  Tax Cases - Other Expenses (Continued) 15:22
  Tax Cases - Gain/Loss7:21
  Tax Cases - Tax Administration15:27
  Conlcusion2:46
Continuous Play
  2019 Judicial Tax Update 1:45:54
SUPPORTING MATERIALS
  Slides: 2019 Judicial Tax UpdatePDF
  2019 Judicial Tax Update Glossary/IndexPDF
REVIEW and TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam