Anyone have an example of a court of claims complaint?

[BulldogTom]

If any one has an example of a Federal Court of Claims complaint against the IRS commissioner for a denied credit, would you be willing to share it with me? I have a client that I believe this is their only recourse. Of course they are poor, and I don't know an attorney that will take a case with a 50% chance of success pro bono.

I have been all over the internet and not finding anything. The Federal Court of Claims website has the basic instructions. I am looking for an example that I can follow.

Any help would be appreciated.

Tom

Lodi, CA

[jainen]

>>I have a client that I believe this is their only recourse<<

Why Court of Claims? Usually that is used when you need to cite precedent that doesn't apply to Tax Court. I wouldn't expect that sort of issue in the case of a credit. It is also pretty expensive and you aren't going to get awarded legal fees, so besides not getting paid an attorney would incur substantial costs. And I don't think a taxpayer could represent himself there; he must have an attorney.

How much money is involved and what do you base your estimate of success on?

[BulldogTom]

<<Why Court of Claims?>>

Because he has missed his opportunity in Tax Court. The Notice of Deficiency was issued in 2006, well beyond the time for filing in the Tax Court. Unless I am mistaken, there are only 90 days to file the tax court protest after the Notice of Deficency is mailed. I would very much love to petition the tax court, but I believe he is barred by statute. Also, since this is a credit, the tax is already paid and I can get him in without him having to put up more money.

<<you aren't going to get awarded legal fees>>

I know this.

<<I don't think a taxpayer could represent himself there; he must have an attorney>>

He can go to the court of claims pro se

<<It is also pretty expensive >>

You may file an Application to Proceed In Forma Pauperis which I think means I am a Pauper and can't afford to sue the United States.

This is the same taxpayer who has not been able to get any of his child related tax benefits because of the 2003 improperly filed tax return. The taxpayer has been audited every year and had his dependency exemptions for his children (his sperm and his name on the birth certificate) who live with him year round denied, his filing status changed from HOH to Single, and lost his CTC, Additional CTC, and EIC. The prior preparers did a crappy job of representing him, making it easy for the IRS to just ignore him. This is the client who the IRS will not even acknowledge the request for audit reconsideration that I prepared 4 months ago.

If you have a better thought on how to proceed to at least get a fair hearing with the IRS, I am all ears. It seems to me that a judge outside the IRS is the only options for a fair hearing. I thought about the Taxpayer advocate, but I am not sure they would not send me back into the same beauracracy that is ignoring the taxpayer right now.

Tom

Lodi, CA

[jainen]

>>how to proceed to at least get a fair hearing with the IRS<<

I think you have a bleak situation. It might be unfair, but the client did it to himself. He was at least careless in the way he traded off dependency and filing status, and it looks even worse.

I guess you now realize there is nothing more to be done with IRS audit and appeals. Even if you could find someone sympathetic and understanding, there is no procedure available to fix it -- except the offer in compromise which I suggested before. I've never worked out how to approach doubt as to liability. Your documents are suitable for this purpose, but how are you going to structure the amount to offer? Perhaps you could accept the penalty and interest only, on the grounds that those figures do fairly reflect the errors the client made in filing. Don't forget that if you go to court and lose, you will no longer be able to claim doubt as to liability.

And you probably will lose in court. I wouldn't be surprised if you don't even get a chance to present the case. The first thing the IRS is going to say is that the client has no standing to sue because he did not exhaust administrative remedies first. It's a catch-22, and a good one.

But what if you do get before the judge? Remember when I said audit reconsideration would only give you ten seconds? That's probably 20 times as long as you'll get in claims court. Do you expect the judge to be impressed with "sperm and his name on the birth certificate"? You know he's going to be more impressed with the signature on the 2003 tax return. With such a trivial dollar amount, you'll be lucky to avoid penalties for a frivolous claim. And the IRS can then come back with EIC sanctions just to be nasty.

Do the OIC, and get on with life.