Kevin Spencer
Subscribe to Kevin Spencer's PostsKevin Spencer focuses his practice on tax controversy issues. Kevin represents clients in complicated tax disputes in court and before the Internal Revenue Service (IRS) at the IRS Appeals and Examination divisions. In addition to his tax controversy practice, Kevin has broad experience advising clients on various tax issues, including tax accounting, employment and reasonable compensation, civil and criminal tax penalties, IRS procedures, reportable transactions and tax shelters, renewable energy, state and local tax, and private client matters. After earning his Master of Tax degree, Kevin had the privilege to clerk for the Honorable Robert P. Ruwe on the US Tax Court. Read Kevin Spencer's full bio.
Court Rules That Wind Farm Did Not Provide Proof of Development Fee to Receive 1603 Cash Grant
By Heather Cooper, Kevin Spencer and Philip Tingle on Jul 2, 2019
Posted In Court Procedure Matters, Tax Refunds, Trial Courts, Uncategorized
On June 20, 2019, the United States Court of Federal Claims published its long-awaited opinion in California Ridge Wind Energy, LLC v. United States, No. 14-250 C. The opinion addressed how taxpayers engaging in related party transactions may appropriately determine the cost basis with respect to a wind energy project under the Internal Revenue Code (IRC). Central...
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Taxpayers Should Prepare for the Next Penalty Battleground
By Evan Walters, Kevin Spencer and McDermott Will & Emery on May 31, 2019
Posted In IRS Audits, IRS Guidance, Tax Refunds, Uncategorized
The IRS is using a new tool from its arsenal to enforce compliance for tax refund and credit claims: the Internal Revenue Code Section 6676 penalty. Taxpayers and their advisers need to be aware of the mechanics of this penalty and how best to avoid it being sustained. Andrew R. Roberson, Kevin Spencer and Evan...
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Tax Court Announces Limited Entries of Appearance
By Kevin Spencer, McDermott Will & Emery and McDermott Will & Emery on May 29, 2019
Posted In Court Procedure Matters, Uncategorized
The concept of limited scope representation is not a new one in the legal arena. Rule 1.2(c) of the ABA Model Rules of Professional Conduct provides that “A lawyer may limit the scope of the representation if the limitation is reasonable under the circumstances and the client gives informed consent.” This rule has been broadly...
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A Notice of Deficiency Is Not Set in Stone
By Kevin Spencer and Le Chen on May 28, 2019
Posted In Appellate Courts, IRS Guidance, Trial Courts, Uncategorized
A recent case decided by the United States Court of Appeals of the Tenth Circuit reminds taxpayers to be aware that the Internal Revenue Service (IRS) is not necessarily locked in to the positions and arguments stated in the Notice of Deficiency. In particular, the IRS is allowed to revise penalty determinations, or to make...
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What Happens At Exam, Stays At Exam!
By Kevin Spencer and Le Chen on Apr 25, 2019
Posted In Court Procedure Matters, IRS Appeals, IRS Audits, IRS Guidance, Trial Courts, Uncategorized
A recent case decided by the US Tax Court reminds us that when you litigate a case in Tax Court, what happened during the Internal Revenue Service (IRS) examination and Appeals bears very little relevance (if any) once you get to court. Generally, Tax Court’s proceedings are de novo, and the court looks solely to...
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Seventh Circuit Upholds Lien Notice despite Incorrect Name
By Kevin Spencer and Macdonald Norman on Apr 23, 2019
Posted In Appellate Courts, IRS Guidance, Trial Courts, Uncategorized
When you do not pay your taxes, the Internal Revenue Service (IRS) has the power to file a “lien” on your property under Internal Revenue Code section 6321. The lien attaches “upon all property and rights to property, whether real or personal, belonging to such person.” Practically, this means that the IRS is giving notice...
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Ninth Circuit Allows IRS to Overrule Common-Law Mailbox Rule
By Kevin Spencer and McDermott Will & Emery on Apr 19, 2019
Posted In Appellate Courts, IRS Guidance, Tax Refunds, Trial Courts, Uncategorized
Most tax professionals are aware of the common-law “mailbox rule,” which provides that proof of proper mailing creates a rebuttable presumption that the document was physically delivered to the addressee. Internal Revenue Code (Code) section 7502 was enacted to codify the mailbox rule for tax purposes. Thus, for documents received after the applicable deadline, the...
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IRS Announces More LB&I Campaigns!
By K. Christy Vouri-Misso, Kevin Spencer and McDermott Will & Emery on Apr 18, 2019
Posted In IRS Audits, IRS Guidance, Uncategorized
The Internal Revenue Service (IRS) Large Business and International (LB&I) Division continues to churn out new audit “campaigns.” For our prior coverage, please click here. The most recent set of campaigns were announced on April 16, 2019, bringing the grand total to 53 campaigns since the program’s initial release on January 13, 2017. The IRS...
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Second Circuit Weighs in on Tax Court’s Refund Jurisdiction
By McDermott Will & Emery, Kevin Spencer and McDermott Will & Emery on Apr 16, 2019
Posted In Appellate Courts, Tax Reform, Tax Refunds, Trial Courts, Uncategorized
Borenstein v. Commissioner is an interesting opinion involving the intersection of canons of statutory construction and jurisdiction. Recently, the US Court of Appeals for the Second Circuit reversed the US Tax Court’s holding in Borenstein that the court lacked jurisdiction to order a refund of an undisputed overpayment made by the taxpayer. The case, which...
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Tax Court Rules State Corporate Incentives Are NOT Taxable Income Under Federal Law
By Kevin Spencer and Le Chen on Apr 11, 2019
Posted In Court Procedure Matters, Tax Reform, Trial Courts, Uncategorized
Many states and localities give incentives for business to move or transact in their locations. There has always been a question of whether these incentives are taxable income under federal income tax law. Internal Revenue Code (IRC) section 118, as amended by the Tax Cuts and Jobs Act, P.L. 115-97, provides that “[i]n the case...
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