Is there any need or virtue to including legal arguments in a filing supporting or justifying what is being reported?
A. In a word, no. Once a testimonial declaration as to the factual matters with which the filing is concerned is made (by way of the return) and appropriate testimonial declarations in rebuttal of any allegations that amounts were received during the relevant period as a consequence of engaging in a taxable activity (by way of affidavits in response to “information returns”, such as Forms 4852, or corrective responses to 1099s, etc.), the tax agencies are required as a matter of law to accept that testimony as definitive and final. Further, even if the agencies were NOT required to accept the filer’s testimony, a tax agency/government that wishes to assert a competing claim to what has been established by the filer’s declarations would bear every burden of proving its claim. Unless someone has already conceded the point in his or her filed return, or given it up by default through non-filing, the burden of proving that IT has a claim to withheld money is ALWAYS on the government in any
