Law360 Quotes Charles Ruchelman on IRS Hiring Outside Litigators

Law360 quoted Charles M. Ruchelman regarding an evidentiary hearing on the IRS's hiring of outside litigators to assist in the audit of Microsoft Corp. While the agency is unlikely to reveal its hiring practices, Mr. Ruchelman noted that granting the hearing was significant and likely due to a holding by the U.S. Supreme Court last year. For the complete article, please visit Law360's website (subscription required).

Excerpt taken from the article.

Charles M. Ruchelman of Caplin & Drysdale Chtd. said the court's ruling on the request for an evidentiary hearing was in line with the high court's decision in U.S. v. Clarke. In that case, the court held that a taxpayer is entitled to an evidentiary hearing on an IRS summons if he can "point to specific facts or circumstances plausibly raising an inference of bad faith."

"Given the IRS' unique relationship with the Quinn Emanuel law firm, which is at the heart of Microsoft's motion, it is not surprising that the court granted an evidentiary hearing to explore Microsoft's concerns," Ruchelman said.