In two high-profile cases, the IRS is in legal wrangles with a major corporation and a famous entertainer. Textron Inc., in an earlier suit brought against them by the IRS to compel the company to disclose certain documents, at first won the right to keep their documents to themselves but now had the earlier decision reversed by a federal appellate court. On the other hand, famous rapper MC Hammer, whose real name is Stanley Burrell is challenging the IRS' contention that he owes them $625,000 in back taxes.
In an earlier court case, Textron Inc. won in a 2-1 decision the right not to disclose documents pertaining to their nine tax shelters, known as tax accrual work papers, to the IRS. But this earlier 3-man judge decision was reversed in a decision that itself was split 3-2 by the 1st US Circuit Court of Appeals. This would facilitate the IRS' investigation of Textron's tax shelters. According to the judgment by the appeals court, the IRS has a legitimate right to investigate abuses committed by companies through tax shelters.
Of late, the IRS has been cracking down on tax shelters, which made the Textron case keenly followed by corporate and legal observers. Textron has been relying on the work product doctrine as the basis for its rightful refusal to submit its tax accrual work papers to the IRS but with the decision of the appeals court, this basis has been brought to naught.
Textron's spokesperson confirmed that the company is now exploring its options in light of the court ruling.
Meanwhile, Stanley Burrell, better known as MC Hammer is in talks with his attorneys in appealing against the IRS' demand of taxes that date back some 15 years. In 1996, the rapper famously had his assets liquidated and went under bankruptcy protection. Since then, Hammer asserts that he had already paid all his dues in claims made by the IRS prior to this present claim. Today, besides his musical career, the rapper has ventured into business and owns his own record label called Dance Jam and his own reality television show, 'Hammertime' aired over the A & E television network.
Hammer calls the present IRS claims against him, 'nonsense' and has presented his case through IRS' appeal process.
The reality is if you dispute a claim that IRS makes against you, then you need to make an Appeals request through the proper IRS channels and within a proper time frame. All IRS guidelines must be strictly adhered to. For expert guidance on how to do this, go to http://getirshelp.com.
Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.