ROBERT C. MCKEE v. COMMISSIONER OF INTERNAL REVENUE No. 04-74846
IRS No. 4036-03

On December 4, 2006, the 9th Circuit reversed the United States Tax
Court on whether litigation costs involving the IRS making a claim
that was 3 times what they were actually owed was the liability of
the McKee family to suffer. An added penalty so to speak.

It is a short read but the sum of it is the Tax Court held the IRS
was not liable for their calculation blunders on the basis that the
Tax Court, in its discretion, claimed the regulations written by the
IRS and codes were so complex that the IRS could not be held liable
for its failure to understand them. The 9th Circuit reversed. The
Commissioner of the Internal Revenue asked the 9th Circuit not to
make the decision public.

And now you have it. No matter what they do with it, you have a
copy of it and the Commissioner is bound by the decision. Imagine,
the taxpayer claiming mistake because the statutes and regulations
were so complex and the IRS rejecting that and seeking penalties for
failure to measure up.

This decision and the Tax Court abuse of discretion show that the
Tax Court is not a Court at all but a place where the complexity can
be filtered to the benefit of the IRS. I do not mind the Government
having the benefit when the law supports their claim but when the
law is basically written by them and they claim it is so complicated
they cannot be held liable for their mistakes, and they deal with it
every day for their job, what does that say about the rest of
America?

It is so complicated. The IRS cannot comply with their own
regulations nor even understand what they say. Add this to the
Paperwork Reduction Act of 1995 duties upon them and it is like
having this in HD.