IN THE UNITED STATES DISTRICT COURT FOR THE

WESTERN DISTRICT OF TAXES

JON FORMAN, ))

  Professor )   )

v. )   CIVIL ACTION NO. 7201)

THE BEST AND THE BRIGHTEST, )   JUDGE DOLLARS)

  Students )

SUMMONS

To the above Students:

You have registered in the course, Tax Procedure, taught by the above-named professor, and you are hereby directed to appear and attend this class throughout the semester on Mondays from 1:00 p.m. to 2:50 p.m., in Classroom 6.  Additional details are set forth in the attached Complaint.

Issued this 25th day of August 2008.

  J. Cheever Loophole, III   J. Cheever Loophole, III   Clerk of Court

Jon Forman, pro seAlfred P. Murrah Professor of LawCollege of LawUniversity of Oklahoma300 Timberdell RoadNorman, Oklahoma 73019

This summons was served on August 25, 2008.

  Joel S. Newman   YOU MAY SEEK THE ADVICE OF THE PROFESSOR ON ANY MATTER CONNECTED WITH THIS COURSE.

IN THE UNITED STATES DISTRICT COURT FOR THE

WESTERN DISTRICT OF TAXES

JON FORMAN, ))

  Professor )   )

v. )   CIVIL ACTION NO. 7201)

THE BEST AND THE BRIGHTEST, )   JUDGE DOLLARS)

  Students )

COMPLAINT

The Professor, Jon Forman, complains and alleges as follows:

1. Class Content. This course focuses on tax administration and the resolution of disputes between taxpayers and the IRS. This will include such topics as returns, assessments, tax research, tax litigation, penalties, and administrative procedures. Students will complete a series of written projects in order to learn the dynamics of federal tax research, practice, and procedure. Grades will be based primarily on practical written assignments; however, this class will not satisfy the Graduation Writing Requirement. There is no final examination. There are no prequisites, but Basic Income Tax would certainly help.

2. Download the Syllabus (with hyperlinks) at http://jay.law.ou.edu/faculty/jforman, click on Teaching Material.

3. Required Texts.  The following books are required for this course:a. David M. Richardson, Jerome Borison & Steve Johnson, Civil Tax Procedure (LexisNexis 2d ed. 2008) ISBN 978-1-4224-1756-0 [hereinafter Casebook].

b. Gail Levin Richmond, Federal Tax Research (Foundation Press 7th ed. 2007) ISBN 978-1-59941-217-7 [hereinafter Research Book].

c. Daniel J. Lathrope, Selected Federal Taxation Statutes & Regulations, 2009 ed. (West, 2008) ISBN 978-0-314-19073-4.4. The Casebook is supplemented by a LexisNexis “Web Course” that contains links to

the Code and regulation provisions assigned at the beginning of each section, cases and other authorities excerpted in the materials, and to other Code and regulation provisions cited in the text and the problems. To enroll in the Civil Tax Procedure Web Course, something like this should eventually work:

• Go to http://www.lexisnexis.com/lawschool/webcourses1

• Enter your LexisNexis Custom ID and Password (please call the LexisNexisLaw School Support Line at 800-455-3947 [800-45LEXIS] if you havemisplaced your Custom ID or Password)• Click “Launch Web Courses”• Click the red “Course” tab• Click on “Browse Course Catalog”• Click on “AAAA National Web Courses”• Scroll down the list to find “Graduate Tax Series: Civil Tax Procedure(grad_tax_0001)”• Click “Enroll”• Enter the access code CTPUF1 (this access code is case sensitive) and click“Submit”

5. Assignments. Assignments in this course refer to the Casebook and the Research Book.  Except as otherwise provided below, read the assignments in the Casebook and Research Book, read the relevant Code and regulation sections, and work out the problems in the Casebook. Also, complete the indicated written assignments.

Class Assignment

August 25 Casebook, Chapter 1 (Structure of Tax Administration and Sources of Tax Law).Research Book, Chapters 1, 2, 3, 4.Your one and only Research Assignment is attached: Interrogatories.Your first Writing Assignment is attached: Draft a Tax Court Petition.

September 1 No class, Labor Day

September 8 Casebook, Chapter 8 (Tax Court Litigation of Deficiency Determinations). Research Book, Chapters 5 (Constitution) and 6 (Statutes).

September 15 Casebook, Chapter 2 (Reporting Obligations).Research Book, Chapter 7 (Legislative History).

September 22 Casebook, Chapter 3 (Spousal Relief).Research Book, Chapter 8 (Treaties and Other International Material).Receive your second written assignment: Draft a Ruling Request.

September 29 Casebook, Chapter 4 (Examination of Returns).Research Book, Chapter 9 (Treasury Regulations).

October 6 Casebook, Chapter 5 (Assessment Procedures and Matters Relating to the Statute of Limitations on Assessment).

Research Book, Chapter 10 (Internal Revenue Documents).

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October 13 Casebook, Chapter 7 (Termination and Jeopardy Assessments)Research Book, Chapter 11 (Judicial Reports). Receive your third written assignment: Draft a Protest.

October 20 Casebook, Chapter 9 (Claims for Refund).Research Book, Chapter 12 (Citators).

October 27 Casebook, Chapters 10 (Judicial and Statutory Rules that Override the Statutes of Limitation).Research Book, Chapter 13 (Looseleaf Services, Encyclopedias, and Treatises).

November 3 Casebook, Chapter 11 (Penalties).Research Book, Chapter 14 (Legal Periodicals and Nongovernmental Reports). Receive your fourth written assignment: Draft a Tax Court Brief.

November 10 Casebook, Chapter 13 (Collection of Tax). Research Book, Chapters 15 (Form Books and Model Language) and 16 (Newsletters).

November 17 No class. If you can, please attend the U.S Tax Court Regular Case Calendar in Oklahoma City and a trial or two.

November 24 Casebook, Chapters 12 (Interest) and 14 (The Section 6672 “Trust Fund Recovery Penalty”).Research Book, Chapters 17 (Print Materials), 18 (Microforms), and 19 (CD/DVD).

December 1 Casebook, Chapter 15 (Transferee and Fiduciary Liability). Research Book, Chapter 20 (Online Legal Research).

6. Course Requirement and Grading Standards. Each student will be required to attend all seminar class sessions and to participate in discussions. Students will submit a Research Assignment, Tax Court Petition, Ruling Request, Protest, and Tax Court Brief. Points for the course are allocated as follows: (i) 10% for class participation, (ii) 15% for the Research Assignment, (iii) 10% for the Tax Court Petition, (iv) 10% for the Ruling Request, (v) 15% for the Protest, and (vi) 40% for the Tax Court Brief. Assignments will be graded, and some of the early assignments may be returned for you to promptly make corrections until they are acceptable. (When an assignment is returned to you for correction, your grade for that assignment will be the average of your grades on the original and on the resubmission.)

7. Office Hours.  Generally, M before and after class, but stop by any time.

8. Class Attendance Policy. Each student must attend class, and students are expected to be on time. If classes are cancelled for any reason attendance may be taken at any make-up

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classes. If a student anticipates missing a class, prior to class time, the student should serve a one-page Motion for Leave to Miss One Class with the above caption (and a certificate of service) on Professor Forman.

If a student misses a class without having previously served such a motion, in accordance with the Federal Rules of Civil Procedure, the clerk will enter the student’s default that day. Within one week, the student must file a Motion to Set Aside Entry of Default and a proposed Order Setting Aside Entry of Default in accordance the Federal Rules of Civil Procedure—or face a one-point final grade reduction (e.g., from B+ to B). In the professor’s sole discretion, tardiness can be considered the equivalent of being absent.

If a student misses a second class, the clerk will enter a default judgment against the student that day. Within one week, the student must file a Motion to Set Aside Entry of Default and Default Judgment, Notice of Motion, supporting affidavit, and a proposed Order Setting Aside Entry of Default Judgment in accordance the Federal Rules of Civil Procedure—or face a further grade reduction.

If a student misses three or more classes, the student will be dropped from the class and receive an “F.”

9. Computer Policy. Personal computers are tolerated as long as they do not distract other students. When called upon, you should immediately close your computer. I believe that students are better off not bringing a computer to class. Cell phones and pagers must be turned off.

10. Students with disabilities. The University of Oklahoma is committed to providing reasonable accommodation for all students with disabilities. Students with disabilities who require accommodations in this course are requested to speak with the professor as early in the semester as possible. Students with disabilities must be registered with the Office of Disability Services prior to receiving accommodations in the course. The Office of Disability Services is located in Goddard Health Center, Suite 166, phone 405-325-3852 or TDD only 405/323-4173.

11. IRS Publications.

1 Your Rights as a Taxpayer (pdf)

5 Your Appeal Rights and How To Prepare a Protest If You Don’t Agree (pdf)

556 Examination of Returns, Appeal Rights, and Claims for Refund (html | pdf)

910 Guide to Free Tax Services (pdf)

1546 The Problem Resolution Program of the Internal Revenue Service (pdf)

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1660 Collection Appeal Rights (pdf)

3498 The Examination Process (pdf)

3498-A

The Examination Process (Examinations by Mail) (pdf)

3598 What You Should Know About the Audit Reconsideration Process (pdf)

3605 Fast Track Mediation-A Process for Prompt Resolution of Tax Issues (pdf)

971 Innocent Spouse Relief (html | pdf)

470 Limited Practice Without Enrollment (pdf)

947 Practice Before the IRS and Power of Attorney (html | pdf)

4245 Limited Practice Without Enrollment (pdf)

1546 The Taxpayer Advocate Service of the IRS – How to Get Help With Unresolved Tax Problems (pdf)

11. Writing competitions.

Tannenwald Writing Competition, prizes up to $3,500, papers due around July 1, see http://www.americantaxpolicyinstitute.org/news.html

12. Jobs

http://www.federaljobs.net/http://www.usajobs.gov/http://www.etsearch.com/currentsearches.html

WHEREFORE, the professor, Jon Forman, prays that the students learn Tax Procedure and that they demonstrate that knowledge in class and on in the written assignments.

Jon FormanJon Forman, pro seAlfred P. Murrah Professor of LawCollege of LawUniversity of Oklahoma300 Timberdell RoadNorman, Oklahoma 73019

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IN THE UNITED STATES DISTRICT COURT FOR THE

WESTERN DISTRICT OF TAXES

JON FORMAN, ))

  Professor )   )

vi. )   CIVIL ACTION NO. 7201)

THE BEST AND THE BRIGHTEST, )   JUDGE DOLLARS)

  Students )

INTERROGATORIES OF PROFESSOR JON FORMAN TO THE BEST AND THE BRIGHTEST STUDENTS

Pursuant to Rule 33 of the Federal Rules of Civil Procedure, the professor, Jon Forman,

submits the following interrogatories to each student. Each interrogatory is to be answered fully

and under (mock) oath or declaration within 30 60 days from the date of service of these

interrogatories. Any answers turned in after that date must be accompanied by a proper motion

for leave to file answers to interrogatories out of time and a proposed order for Judge Dollars to

sign allowing the late filing. In no event will interrogatory answers be accepted after Friday,

December 5, 2008.

Your one and only Tax Procedure Research Assignment is to answer 25 appropriate

numbered questions in Chapters 5-11, 13-16, and 20 of your Research Book. (Questions that

call for selections by or directions from the professor are not appropriate.) You may not choose

to answer more than three questions from any chapter. The assignment counts for 10 percent of

your final grade.

Treat the questions you choose as Interrogatories. Answers are to be typed in the form

dictated by the Federal Rules of Civil Procedure, except that no objections should be raised.

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You should retype the questions as numbers 1 through 25, indicate the source of each question,

and put each answer underneath the relevant question. Answers that are inexplicably incomplete

or not in compliance with the Federal Rules of Civil Procedure will be returned for redrafting.

Most questions and subquestions can be answered in just a few lines. Students may help

each other locate materials and figure out procedural rules; however, each student must

individually choose which 25 questions to answer (without consultation), individually use each

applicable resource to find the answers, and individually draft and submit his or her own

answers. Except as otherwise provided, all citations should be in the form required by The

Bluebook: A Uniform System of Citation.

Each student’s answers to interrogatories should have the caption of this action, a title, an

introductory statement, an affidavit or affirmation (See F.R.C.P. Rules 33, 43; 28 U.S.C. §

1746), and a certificate of service.

Try to use reference books in the area where they are shelved. That way, if someone else

wants a reference book that you are using, he or she can find it and make arrangements for its

use. Always reshelve your books when you are done with them.

By: Jon FormanJon Forman, pro seAlfred P. Murrah Professor of LawCollege of LawUniversity of Oklahoma300 Timberdell RoadNorman, Oklahoma 73019

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CERTIFICATE OF SERVICE

IT IS HEREBY CERTIFIED that service of the foregoing INTERROGATORIES OF

PROFESSOR JON FORMAN TO THE BEST AND THE BRIGHTEST STUDENTS has this

25th day of August, 2008, been made by delivering a copy thereof to each student in Tax

Procedure.

Jon FormanJon Forman, pro seAlfred P. Murrah Professor of LawCollege of LawUniversity of Oklahoma300 Timberdell RoadNorman, Oklahoma 73019

FIRST WRITING ASSIGNMENT: DRAFT A TAX COURT PETITION

To: Your Name, Attorney at Law, University of Oklahoma, College of Law, 300 Timberdell Road, Norman, Oklahoma 73019

Your research assignment is to draft a petition to be filed in the United States Tax Court on behalf of your hypothetical client, Jack Adams.

Your petition must be typed, double-spaced, 10- or 12-point print, with pages numbered, and otherwise comply with United States Tax Court Rules 20 - 34 and Form 1. These rules are available in a number of books in the library (e.g., USCA) and, inter alia, on LEXIS, USCS - Rules of Practice and Procedure of the United States Tax Court. Also, sample Tax Court petitions are available, inter alia, on LEXIS, Tax Analysts Tax Court Filings. Photocopies will not be accepted. Forge any signatures that you need, and make up any other facts that you may need. Finally, in the upper left hand corner of the first page, you should indicate the number of hours you actually spent completing this assignment followed by a semicolon and the number of hours you believe that it would be reasonable to bill the client.

Students may help each other with this assignment; however, each student must personally draft and submit his or her own Tax Court petition. Among other things, this means that each student must personally type (or capture from library resources) each and every word of his or her petition (or have his or her petition typed by a nonstudent from a document, each and every word of which is handwritten by the student). Basically, students can compare their results, but they cannot share files or copy from one another.

This assignment must be turned in no later than 5:00 p.m. on the appropriate date. This assignment counts for 10 percent of your final grade. Please submit the petition by personally handing the original to Professor Forman in an unmarked envelope or by ensuring that the original is put in his mailbox at the Law Center. Unacceptable submissions will be returned for resubmission within two weeks after they are returned (whether or not you are in class that day). A petition will be deemed unacceptable, inter alia, if it has any typographical or grammatical error or otherwise fails to comply with any of the above requirements. The facts relating to Jack Adams appear on the following pages.

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FACTS

Jack Adams resides at 14 Poindexter Road, Shawnee, Oklahoma. Jack has been a veterinarian in Shawnee for 10 years. He owns an 80-acre farm in Shawnee, which he purchased for $100,000 in 2000. When he purchased the farm, it included an old farm house, a barn, a few small buildings, and some animals. The old farm house was in disrepair, and Jack built a new residence and office for his practice in 2001 at a cost of $80,000. The house and office building were surrounded by two acres of lawn. Jack enjoys gardening, and he invests much time and money caring for the lawn, trees and gardens in this area of his property. In 2002, after his house was built, Jack seeded the lawn and planted many trees, shrubs, and flowers in the yard at a cost of $2,000.

Despite the care Jack gave his lawn, it was filled with weeds by 2006. Jack went to Tom’s Hardware Store in downtown Beaver to purchase a weedkiller. He asked the salesman there to recommend a particular brand. The salesman suggested that Jack use two gallons of Isolyne, a trade name of a weedkilling chemical product and directed Jack to the aisle where Isolyne was stocked. When Jack went down the aisle, he first came across a product called Silyne, a strong chemical agent. He thought that it was the product recommended by the salesman; he purchased two gallons; and he applied it to his lawn.

Jack raised three cows, a few sheep and two horses on his farm. He bought the cows for $750 each in the fall of 2004. One horse and the sheep came with his property. He bought the other horse for $3,000 in January 2005. At night the animals roamed certain fields that he kept fenced. The night after Jack applied the weedkiller, the animals escaped through a break in the fence and roamed all around his property. After Jack woke up the next morning, a neighbor called him to tell him that the sheep were on his neighbor’s property. He herded them back onto a field and mended the fence. Jack did not see the cows or horses anywhere. He assumed that they were roaming around the pastures. Since he was in a hurry that morning, he decided to look for them later.

After he mended the fence, Jack went to Tom’s Hardware to purchase fertilizer. The fertilizer was located at the end of the same aisle on which weedkillers were stocked. As Jack went down the aisle, he saw the product Isolyne stored beside the fertilizer. He noticed that the name was similar to the product he had purchased. He read the labels on both products to compare them. For the first time he read the label on the Silyne product. It contained a caution that the product should not be used on vegetation not desired to be killed, or on lawns. He did not recall seeing or reading the label on the gallons of Silyne he had purchased the previous day. He brought the product to the salesman who, as Jack recalled, recommended it and sold it to him. The salesman told Jack that he had not suggested Silyne, but Isolyne, and that when Jack was at the cash register, the salesman had not really paid attention to the items Jack had finally purchased.

After Jack returned from the hardware store, he noticed that two cows and the horses were lying on their sides in the pasture and he went to examine them. He found that they were

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dead, from no apparent cause. After close examination, he concluded that they had died of poisoning. The only poison that the animals had access to was that which he had sprayed on his lawn the previous day.

Two weeks later Jack’s entire lawn died. Within two months, all the trees, shrubs, and flowers around his house died. Jack consulted Jane True of a local landscaping firm, who recommended that Jack lay new sod at a cost of $20,000. The estimated replacement cost of the trees, shrubs, and flowers was $2,500. One of Jack’s friends, who was a real estate agent, told Jack that he thought the value of his property had decreased by $15,000 as a result of the damage to the yard.

Jack did not seek any legal advice in 2006. Instead, Jack simply claimed a casualty loss deduction of $27,900 on his 2006 income tax return. This was computed by taking the estimated cost of replacement of the lawn area to be $22,500, adding the cost of the horses (he estimated the value of the horse that he purchased with the farm to be $1,000) and cows, and subtracting the $100 per casualty limitation.

Jack’s return was bounced out of the IRS computer for examination, and Jack recently received the following ninety day letter from the Internal Revenue Service. He seeks your assistance in drafting a petition to the United States Tax Court:

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Internal Revenue Service Department of TreasuryOffice of Individual Taxation Operations

Symbols: IRS-73069

Date: June 23, 2008

Social Security or Employer Identification Number: 001-00-0021

Tax Year Ended and Deficiency: December 31, 2006: $13,900Income Tax; $695 Sec. 6653(a) Addition to tax.

Person to Contact: Rashid Farrar

Contact Telephone Number: 202-349-4702

Jack Adams14 Poindexter RoadShawnee, Oklahoma 74802

Dear Taxpayer:

We have determined that there is a deficiency (increase) in your income tax as shown above. This letter is a NOTICE OF DEFICIENCY sent to you as required by law. The enclosed statement shows how we determined the deficiency.

If you want to contest this deficiency in court before making any payment, you have 90 days from the above mailing date of this letter (150 days if addressed to you outside of the United States) to file a petition with the United States Tax Court for a redetermination of the deficiency. The petition should be filed with the United States Tax Court, 400 Second Street, NW, Washington, DC 20217, and the copy of this letter should be attached to the petition. The time in which you must file a petition with Court (90 or 150 days as the case may be) is fixed by law and the Court cannot consider your case if your petition is filed late. If this letter is addressed to both a husband and wife, and both want to petition the Tax Court, both must sign the petition or each must file a separate, signed petition. You can obtain a copy of the rules for filing a petition by writing to the Clerk of the Tax Court at the Washington, D.C. address shown above.

If you decide not to file a petition with the Tax Court, we would appreciate it if you would sign and return the enclosed waiver form. This will permit us to charge your account quickly and will limit the accumulation of interest. The enclosed addressed envelope is for your convenience. If you decide not to sign and return the waiver and you do not timely petition the Tax Court, the law requires us to bill you after 90 days from the above mailing date of this letter (150 days if this letter is addressed to you outside the United States).

If you have any questions, please contact the person whose name and telephone number are shown above.

Sincerely,

Douglas ShulmanCommissioner

By

Shiro Kawashima

Shiro Kawashima Director of Individual Taxation

Enclosures:Copy of this letterExplanation of Deficiency WaiverEnvelope

1325 K St., NW, Washington, DC20225

Letter 892 (Rev. 11-80)

*****************************************************************

EXPLANATION OF DEFICIENCYFOR TAXPAYER, JACK ADAMS

SS# 001-00-0021

Taxable Year Ended December 31, 2006

1. You have not verified that you are entitled to take a casualty loss deduction, nor have you substantiated the amount of the loss. Accordingly, your casualty loss deduction has been disallowed.

2. Because the underpayment is due to negligence or intentional disregard of rules or regulations, there has been added an amount equal to 5 percent of the underpayment. See sec. 6653(a).

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