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.
What to Expect During a Change of Administration
By Editorial Team, Kevin Spencer, McDermott Will & Emery and McDermott Will & Emery on Jan 25, 2017
Posted In Court Procedure Matters, IRS Audits, IRS Guidance, Uncategorized
With the inauguration of President Trump, and the accompanying change of administration, the American people have been promised great change in all areas of the federal government. One question we at McDermott have been frequently asked since the election is: what should a taxpayer expect from the Internal Revenue Service (IRS) and the Department of...
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National Taxpayer Advocate 2016 Report – IRS Appeals and Alternative Dispute Resolution
By Kevin Spencer and McDermott Will & Emery on Jan 24, 2017
Posted In Alternative Dispute Resolution, IRS Appeals, IRS Audits, Settlements, Uncategorized
In its annual report to the US Congress, the Taxpayer Advocate Service (TAS) had a lot to say about IRS Appeals and the (lack of) use of other alternative dispute resolution (ADR) techniques. In this post, we will highlight what the TAS had to say in this area. IRS Appeals Undoubtedly, one of the Internal...
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Ready or Not, Here They Come! The New Partnership Audit Rules
By Kevin Spencer, Kristen E. Hazel and Madeline Chiampou Tully on Dec 27, 2016
Posted In IRS Audits, IRS Guidance, Uncategorized
On November 2, 2015, the Bipartisan Budget Act of 2015, (the Act), H.R. 1314, 114 Congress/Public Law No. 114-74, made significant changes to the rules governing US federal income tax audits of partnerships (New Audit Rules). The New Audit Rules are codified at Internal Revenue Code Sections 6221 through 6241. On August 4, 2016, the...
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Court Holds Compensation Paid to Four Sons Was Not Reasonable
By Kevin Spencer and Ruth Wimer on Nov 30, 2016
Posted In Court Procedure Matters, Trial Courts, Uncategorized
Reasonable compensation is a fact based analysis, and once again has been decided against the taxpayer. In Transupport, Inc. v Commissioner, T.C. Memo. 2016-216, the issue presented for decision was whether amounts deducted by the taxpayer, a distributor and supplier of aircraft engines and parts, during 2006‒2008 as compensation that was paid to the four...
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IRS Announces New Chief of IRS Appeals
By Kevin Spencer and McDermott Will & Emery on Nov 29, 2016
Posted In IRS Appeals, Uncategorized
In further changes to the Internal Revenue Service (IRS) Appeals Division, it was recently announced that Donna C. Hansberry will replace Kirsten B. Wielobob as chief of IRS Appeals. Ms. Hansberry is currently the deputy commissioner of the Tax Exempt and Government Entities Division. She started as a trial attorney for the IRS Office of Chief...
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Court Awards $206 Million in Section 1603 Grant Wind Project Case
By Heather Cooper and Kevin Spencer on Nov 3, 2016
Posted In Court Procedure Matters, Tax Refunds, Trial Courts, Uncategorized
The US Court of Federal Claims awarded damages of more than $206 million to the plaintiffs in a case involving the cash grant program pursuant to Section 1603 of the American Recovery and Reinvestment Act of 2009 (the Section 1603 Grant). In its opinion, published on October 31, 2016, the court held that the US...
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Former Tax Court Judge Pleads Guilty to Tax Crimes
By Kevin Spencer and McDermott Will & Emery on Oct 24, 2016
Posted In Trial Courts, Uncategorized
Following up on our prior coverage (see here), former US Tax Court Judge Diane L. Kroupa pleaded guilty on Friday to multiple tax criminal charges related to her tax returns and interactions with the Internal Revenue Service. The government stipulated during the hearing that all charges except defrauding the United States would be dropped if...
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Types of Tax Court Opinions and Their Precedential Effect
By Kevin Spencer and McDermott Will & Emery on Oct 13, 2016
Posted In Court Procedure Matters, Trial Courts, Uncategorized
Most tax cases are decided by the US Tax Court (Tax Court). The Tax Court issues two categories of opinions: (1) formally published dispositions; and (2) unpublished dispositions. The first category consists of opinions that are published in the Tax Court Reports and technically are called “division opinions” but are more commonly referred to as...
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UTP Filings Continue to Rise
By Kevin Spencer and Robin L. Greenhouse on Oct 12, 2016
Posted In IRS Guidance, Transfer Pricing Resource, Uncategorized
The IRS has released statistics for the 2010 to 2014 tax years relating to Schedule UTP (Uncertain Tax Position) filings, showing that there were 6,320 uncertain tax positions reported in 2014. The statistics show a steady increase in the reported positions, which totaled 4,740 in 2010, although this may also be attributed to the fact...
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IRS Appeals – Changes Afoot?
By Jean A. Pawlow and Kevin Spencer on Oct 4, 2016
Posted In IRS Appeals, IRS Guidance, Settlements, Uncategorized
IRS Appeals cases within the Large Business and International (LB&I) division that involve a significant number of issues, a significant amount of money, or highly complex issues are typically assigned to a “team” of IRS Appeals officers. The Appeals Team Case Leader (ATCL), however, has “complete control” of the case, is “independent” from the IRS...
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