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Sauce For The Gander ? Revenue Agent Loses Job For Losing In Tax Court

Sauce For The Gander ? Revenue Agent Loses Job For Losing In Tax Court

He appealed to the Merit Systems Protection Board, which agreed with the arbitrator.  The Circuit Court decision pretty much focuses on what I call “lawyerly” stuff about procedures and burden of proof and the like.  Ultimately they upheld the MSPB decision.  I am of two minds about this decision overall.  On the one hand, I think it is reasonable to hold IRS employees, particularly revenue agents, to a high standard with respect to their own tax compliance.  On the other hand, I think the result is on the harsh side.  The total deficiency for four years was only around $10,000.  It was conceivable that the Tax Court could have believed Mr. Agbaniyaka’s sincerity, in which case some of the deductions might have been allowed under the Cohan rule.  Under the statute, the alternative to having him fired, was for the IRS Commissioner to craft some other sanction.  Maybe they could have just made him work Amway cases for a couple of years.  That would have been punishment enough.

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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.