The use of Generally Accepted Accounting Principles (GAAP) in tax litigation

Abstract

Over the years, Generally Accepted Accounting Principles (GAAP) issues have been raised in tax litigation by both taxpayers and the IRS. By studying the tax cases in which GAAP has been used, the authors were able to identify which issues the parties raised, which issues the courts used in making decisions, and whether raising the GAAP issue helped the taxpayer or the IRS prevail. The information developed in this study is useful to tax advisors and the IRS, in deciding when and how to use GAAP as part of a tax litigation .strategy, and to the courts, in assessing the proper use of accounting standards in determining taxable income.

Citation

Whittenburg, G.E., Raabe, W.A. and Lackritz, J.R. (2001), "The use of Generally Accepted Accounting Principles (GAAP) in tax litigation", Advances in Taxation (Advances in Taxation, Vol. 13), Emerald Group Publishing Limited, Leeds, pp. 205-218. https://doi.org/10.1016/S1058-7497(01)13012-7