1. Sergio, a calendar year taxpayer, filed his 2015 return on July 27, 2016 under a valid extension of the original April 15, 2016 due date. In 2020, the IRS audits Sergio's 2015 return and proposes an assessment of a substantial amount additional tax due, plus penalties and interest. The revenue agent issues his report ("RAR") and 30 day letter on April 30, 2020. Sergio timely (i.e., within 30 days of the RAR and 30 day letter) disputes the proposed assessment on the grounds that the statute of limitations has run. Sergio pursues the case through the proper channels within the IRS, including the IRS Appeals Division, but is unsuccessful. The IRS issues Sergio a Notice of Deficiency (90 day letter) on August 20, 2020 a. Is Sergio correct in disputing the assessment of income tax against him in 2020? Why? Are there any arguments that the IRS might raise against him? If so, what are they? b. Sergio seeks your advice on his options to litigate this matter, particularly in front of a jury. Discuss Sergio's options to litigate this matter, including any court deadlines he faces. Assume that Sergio has sufficient financial resources to pay the assessed tax, penalties and interest immediately. 1. Sergio, a calendar year taxpayer, filed his 2015 return on July 27, 2016 under a valid extension of the original April 15, 2016 due date. In 2020, the IRS audits Sergio's 2015 return and proposes an assessment of a substantial amount additional tax due, plus penalties and interest. The revenue agent issues his report ("RAR") and 30 day letter on April 30, 2020. Sergio timely (i.e., within 30 days of the RAR and 30 day letter) disputes the proposed assessment on the grounds that the statute of limitations has run. Sergio pursues the case through the proper channels within the IRS, including the IRS Appeals Division, but is unsuccessful. The IRS issues Sergio a Notice of Deficiency (90 day letter) on August 20, 2020 a. Is Sergio correct in disputing the assessment of income tax against him in 2020? Why? Are there any arguments that the IRS might raise against him? If so, what are they? b. Sergio seeks your advice on his options to litigate this matter, particularly in front of a jury. Discuss Sergio's options to litigate this matter, including any court deadlines he faces. Assume that Sergio has sufficient financial resources to pay the assessed tax, penalties and interest immediately
