Recent case law, including the Kwong decision, reinforces a point the IRS often prefers taxpayers overlook: its authority is broad—but not unlimited. When the IRS fails to follow its own procedures, its position becomes vulnerable.
This is not a technicality. It is leverage.
What the Kwong Decision Reinforces
At its core, Kwong underscores that the IRS must strictly comply with statutory and procedural requirements when taking enforcement action. Courts are increasingly willing to scrutinize whether the IRS has done so.
For taxpayers, this matters because procedural defects can materially impact the validity of IRS actions—including assessments and collections.
Where This Comes Up in Practice
- IRS examinations
- Information Document Requests (IDRs)
- Notices of Deficiency
- Collection Due Process (CDP) hearings
- bank levies
- wage garnishments
- notices of federal tax liens
When the IRS cuts corners in any of these phases, it creates opportunity.
The Strategic Takeaway
- Procedural compliance is not optional for the IRS
- Defective notices and missteps can be challenged
- Courts will intervene where due process is compromised
In other words, the government does not get the benefit of the doubt when it fails to follow the rules.
What This Means for Your Case
If you are facing an audit or collection action, the question is not just whether the IRS is substantively correct—it is whether they got there correctly.
- Whether notices were properly issued
- Whether deadlines and response rights were honored
- Whether enforcement actions were legally supported
These are not side issues. They are often the difference between a defensible case and a losing one.
Practical Next Steps
- Do not assume the IRS is procedurally correct
- Do not ignore notices—even defective ones require a response
- Have counsel review the record early for procedural defects
- Preserve all communications and documentation
Bottom Line
The Kwong decision reinforces what experienced tax counsel already knows: the IRS’s power is conditioned on compliance with the law.
When that compliance breaks down, so does their position.
If you are facing IRS enforcement or need a second look at your case strategy, Wilson Tax Law Group can evaluate both the substance and the procedure behind the IRS’s position. Please call or email Wilson Tax Law Group, APLC, to setup a consultation with our firm.
Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense. Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board. Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.
For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC Tel: (949) 397-2292 (Newport Beach Office) Tel: (714) 463-4430 (Yorba Linda Office)
Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.
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