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.
Expert “Hot Tubbing” in the Tax Court
By Kevin Spencer and McDermott Will & Emery on Jul 15, 2016
Posted In Court Procedure Matters, Trial Courts, Uncategorized
The use of expert witnesses in litigation can be tricky. Taxpayers want to avoid the perception that their expert is a “hired gun” who is merely their biased advocate. The US Tax Court has repeatedly stated that such expert testimony is not useful or credible. A technique that is common in Australia, and has been...
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IRS Finalizes Controversial Regulations Allowing Contractor Participation in Examinations
By Kevin Spencer and McDermott Will & Emery on Jul 14, 2016
Posted In IRS Audits, IRS Guidance, Transfer Pricing Resource, Uncategorized
On July 12, 2016, the Internal Revenue Service (IRS) finalized regulations allowing third-party contractors (i.e., outside economists, engineers, consultants and attorneys) to participate in audits of taxpayers. The regulations are not limited to allowing outside parties to review taxpayers’ books and records, but extend to the full participation in summons interviews. The final regulations replace...
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Tax Court Clarifies the Rules and Grants IRS’s Motion to Compel Nonconsensual Depositions
By Alex Cheng-Yi Lee and Kevin Spencer on Jul 12, 2016
Posted In Court Procedure Matters, Trial Courts, Uncategorized
On July 8, 2016, Judge Buch of the US Tax Court (Tax Court) granted the Internal Revenue Services (IRS) motion to compel depositions of six individuals in Dynamo Holdings Ltd. P’ship v. Commissioner. That case involves the question of whether certain transfers between related entities are disguised gifts or loans. The IRS has been attempting...
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IRS Issues New Procedures to IRS Appeals for Requesting Assistance from Exam in Docketed Tax Court Case
By Kevin Spencer, Alex Cheng-Yi Lee, Roger J. Jones and McDermott Will & Emery on Jul 1, 2016
Posted In IRS Appeals, IRS Audits, Transfer Pricing Resource, Uncategorized
On June 24, 2016, the Internal Revenue Service (IRS) issued a memorandum (AP-08-0616-0003, available here) to the IRS Appeals Division (Appeals) providing new, uniform procedures for requesting assistance from the Examination Division (Exam) in docketed Tax Court cases. The guidance implements standard procedures that would treat petitioners similarly. Currently, when petitioners provide new information to...
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CbC Reporting Is Here to Stay! Treasury Issues Final Regs
By Kevin Spencer on Jun 30, 2016
Posted In IRS Guidance, Transfer Pricing Resource, Uncategorized
As anticipated in our earlier post, Country-by-Country (CbC) reporting is finally here! On Wednesday, the US Department of the Treasury released final regulations for CbC reporting, effective June 30, 2016. The final regulations apply to any US person who is the “ultimate parent” of a multinational enterprise group that has annual revenue for the preceding year...
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IRS Wages ‘Campaigns’ against Taxpayers
By Chelsea Hess, Kevin Spencer and Robin L. Greenhouse on Jun 29, 2016
Posted In IRS Appeals, IRS Audits, IRS Guidance, Uncategorized
Late last year, the Internal Revenue Service’s (IRS’s) Large Business and International (LB&I) division announced that it would restructure its organization. The restructuring was precipitated by shrinking resources and a shifting environment. A primary feature of the restructuring is the end of the continuous audit program (where the IRS audits a large taxpayer year after...
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Tax Court Adopts Rules for Judicial Conduct and Judicial Disability Complaints
By Kevin Spencer and McDermott Will & Emery on Jun 15, 2016
Posted In Court Procedure Matters, Trial Courts, Uncategorized
In a June 14, 2016 press release (available here), Chief Judge L. Paige Marvel of the United States Tax Court announced the adoption of rules for judicial conduct and judicial disability complaints. The rules conform with the Rules for Judicial Conduct and Judicial Disability Proceedings promulgated by the Judicial Conference of the United States. Links...
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IRS Publishes Another IPU on Transfer Pricing
By Kevin Spencer and McDermott Will & Emery on Jun 8, 2016
Posted In IRS Guidance, Transfer Pricing Resource, Uncategorized
The Internal Revenue Service (IRS) continues to publish International Practice Units (IPUs) on transfer pricing. As explained in our prior post, the IRS has provided guidance on the three requirements to come within the transfer pricing rules in IRC section 482. The IRS continues to expend its limited resources on international tax issues, arming its field...
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Do Partnerships Now Need to Reserve for Taxes?
By Gale E. Chan and Kevin Spencer on Jun 6, 2016
Posted In Uncategorized
The Bipartisan Budget Act of 2015, P.L. 114-74, added new partnership audit rules, which are generally effective for tax years beginning in 2018. These new rules will allow the Internal Revenue Service (IRS) to assess and collect tax due on partnership adjustments at the entity level. Some partnerships will be able to elect out of...
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“Snow Day” Case Highlights Importance of Timely Filing Requirements
By Kevin Spencer and McDermott Will & Emery on Jun 3, 2016
Posted In Court Procedure Matters, Trial Courts, Uncategorized
On June 2, 2016, the US Tax Court issued a unanimous court-reviewed opinion in Guralnik v. Commissioner, 146 T.C. No. 15 (available here), addressing several points related to the timely filing of court documents. The opinion provides important reminders to taxpayers to ensure that they meeting filing deadlines.
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