Reference no: EM133810653

Question

Considering ONLY tax procedure issues, don't consider substantive tax issues, referring to any law that maybe useful to the issue, including the Internal Revenue Code, Treasury Regulations, case law, revenue procedures, revenue rulings, Tax Court Rules:

The firm represents the Bakers, who breed and sell racehorses. One of the issues raised by the IRS is whether the Bakers engaged in horse breeding activity for profit for the tax year 2020. You understand that the Bakers have been operating their business for five years and reported a loss each year. The Bakers's three children enjoy riding horses but do not ride the horses used in the breeding activity. Over the past five years, the Bakers have sold five horses for under $2,000. If Bakers were to prevail, they would likely be due a refund. You may assume specific facts not included above to support your argument. Assume penalties and interest are accruing, and a valid Notice of Deficiency (NOD) has been issued.

1. Describe the nature of the controversy and the issue to be decided.

2. List proposed findings for fact. For each requested finding of fact, explain why it is included in the requested findings of fact.

3. Give a concise statement of the law upon which your argument will rely.

4. Give a legal argument. What are your goals in drafting the argument? How do you intend to meet those goals?