But I don't think they would have made it an issue if they hadn't been worried about the 5th. The loser will quickly file an appeal. The IRS seldom has the opportunity to pick its appellate forum, according to Mr. Sommerville. Normally, the taxpayer's place of residence decides that issue. But his client's foreign assignment in this case gave the service a chance to choose.
Answers vary and theories abound.
But two things seem clear. Decisions in many tax controversy cases by the 5th indicate to some that it is a court poised to pounce on the IRS whenever it can. I'll want to read it. The 5th has liberalized the way to get attorney fees and no other court has ruled that way. By press time, however, no list had arrived.