August 1999

Tax Judge Encourages CPAs to Represent Public in Disputes

By James A. Woehlke, CPA

Administrative Law Judge Anne Murphy of the New York City Tax Appeals Tribunal recently addressed the NYSSCPA New York State, Municipal, and Local Taxation Committee, chaired by Barry Horowitz. She encouraged the committee, and CPAs in general, to take a more active role representing taxpayers in tax controversies with the city.

Judge Murphy said she has found that CPA advocates tend to show an excellent grasp of the facts and how they relate to the tax law. She cautioned the committee, however, to recognize the possible adverse impact on clients due to some practitioners' limited exposure to legal brief writing, oral argumentation, and technical rules of evidence. This is especially a concern in a case that is not heavily based on the facts, but on interpretation of the law or on trial procedures. In those situations, she said, CPAs are well advised to bring in legal counsel.

Judge Murphy discussed the filing of the petitions.

"I can't emphasize enough how important it is to file petitions correctly," she said. "Without a correctly filed petition, the tribunal is powerless to hear a case."

She noted that the city's procedures require that copies of any petitions be filed with corporation counsel. This requirement for appeals to the city's tribunal does not exist with the state tax appeals tribunal. Petitions also should be filed by certified or registered mail to make sure they are timely. Corporation counsel must file an answer to the taxpayer's petition, and the taxpayer may file a reply.

Judge Murphy lauded the city's administrative rules that encourage conferences between the city and taxpayer to settle their dispute or at least agree to as many of the underlying facts as possible. She said that this is another reason why she has come to appreciate the CPA's grasp of the facts underlying tax controversies.

"I encourage the parties to make as complete a use of the conference procedures as they can to agree, at a minimum, on as many facts as possible before coming to the hearing," she said.

Throughout the conference process, Judge Murphy encourages taxpayer representatives to communicate with the lawyers at corporation counsel. Since judges are not supposed to know the specifics of a case, Judge Murphy said she at least wants to know that the settlement process is ongoing and progressing.

If a matter is not settled and proceeds to hearing, the judge asked that CPA representatives honestly consider their limitations. The tribunal's rules permit CPAs to represent taxpayers at hearings, but if a matter turns on some arcane legal issue rather than just the facts, the client might be better served by an attorney.

"Don't forget that the most important person in the hearing room is the stenographer," Judge Murphy said. "If he or she does not write down something in the record, as a practical matter, it was never said."