In Caldwell v. Commissioner, TC Summary Opinion 2009-169, November 18, 2009, the Tax Court ruled that an individual was entitled to an alimony deduction after the IRS conceded the issue. However, the court also decided that the individual was not entitled to an apology from the IRS. The Tax Court did not have jurisdiction to require the IRS to apologize or change its procedures. The Tax Court was not, either through IRC Section 7430, or otherwise, authorized to grant this relief.

Mr. Caldwell asked that the Court require the IRS to enter into the record "a written apology to the Petitioner, signed by the Commissioner, Internal Revenue Service", which must "explain the steps that the IRS has taken to prevent future acts of erroneous tax audits that were demonstrated in the IRS audit.”

Perhaps Mr. Caldwell should be happy with his victory and leave well enough alone. Maybe Congress can add an “apology clause” to Section 7430. But, would taxpayers who lose also have to apologize to the IRS? We’re entering some uncharted territory here.

Under the IRS Restructuring and Reform Act of 1998, and subsequent legislation and policy, the IRS has become more of a “customer service” organization. A bit more warm and fuzzy. Mr. Caldwell did have at least one point—it might be of value for the IRS to explain the steps that the IRS had taken to prevent future erroneous audits.

But as far as a written apology is concerned, maybe Caldwell should quit while he’s ahead!