Importance of Court Decisions
Court decisions vary in importance according to the level of the court. Supreme Court decisions become the Law of the Land. That the IRS is well aware that Supreme Court Decisions are the Law of the Land, and that the decisions of the lower courts are limited in application is shown within their Internal Revenue Manual (IRM). Regarding the IRM, the Supreme Court has stated:
“Where the rights of individuals are affected, it is incumbent upon agencies to follow their own procedures. This is so even where the internal procedures are possibly more rigorous than otherwise would be required. Service v. Dulles,
354 U.S. 363, 388 (1957); Vitarelli v. Seaton, 359 U.S. 535, 539 -540 (1959). The BIA, by its Manual, has declared that all directives that "inform the public of privileges and benefits available" and of "eligibility requirements" are among those to be published. The requirement that, in order to receive general assistance, an Indian must reside directly "on" a reservation is clearly an important substantive policy that fits within this class of directives. Before the BIA may extinguish the
entitlement of these otherwise eligible beneficiaries, it must comply, at a minimum, with its own internal procedures.” - [Morton v. Ruiz, 415 U.S. 199, 94 S.Ct. 1055, 39 L.Ed.2d 270 (1974)]
In spite of the above, the IRS has effectively incorporated procedures in the IRM whereby they commit fraud and attempt to bypass the Constitution of the United States. However, their IRM does admit to the fact that Supreme Court decisions are the Law
of the Land and must be adhered to.
4.10.7.2.9.8 (01-01-2006)
Importance of Court Decisions
1. Decisions made at various levels of the court system are considered to be interpretations of tax laws and may be used by either examiners or taxpayers to support a position.
2. Certain court cases lend more weight to a position than others. A case decided by the U.S. Supreme Court becomes the law of the land and takes precedence over decisions of lower courts. The Internal Revenue Service must follow Supreme Court decisions. For examiners, Supreme Court decisions have the same weight as the Code.
3. Decisions made by lower courts, such as Tax Court, District Courts, or Claims Court are binding on the Service only for the particular taxpayer and the years litigated. Adverse decisions of lower courts do not require the Service to alter its position for other taxpayers.
Key Supreme Court Decisions
Following are key decisions of the Supreme Court having bearing on taxation:
The Antelope, 23 U.S. 66, 120 (1825)
Citizens' Savings & Loan Ass'n v. City of Topeka, U.S. 655 (1874)
Butchers' Union Co. v. Crescent City Co., 111 U.S. 746 (1884)
Flint v. Stone Tracy Co., 220 U.S. 107 (1911)
Stratton’s Independence, LTD. v. Howbert, 231 US 399, 414 (1913)
Brushaber v. Union Pacific R. Co., 240 U.S. 1 (1916)
Eisner v. Macomber, 252 U.S. 189 (1920)
Truax v. Corrigan, 257 US 312, 331, 338 (1921)
Bowers v. Kerbaugh-Empire Co., 271 US 174D (1926)
Redfield v. Fisher, 292 P. 813, 135 Or. 180, 294 P. 461, 73 A.L.R. 721 (1931)
Railroad Retirement Board v. Alton Railroad Co, 295 U.S. 330, 55 S. Ct. 758 1935)
Murdock v. Pennsylvania, 319 U.S. 105 at 113 (1943)
James v. United States, 366 US 213, p. 213, 6L Ed 2d 246 (1961)
Central Illinois Public Service Co. v. United States, 435 U.S. 21 (1978)
South Carolina v. Baker, 485 U.S. 505 (1988)
|
|
|
