The use of expert witnesses in litigation can be tricky.  Taxpayers want to avoid the perception that their expert is a “hired gun” who is merely their biased advocate.  The US Tax Court has repeatedly stated that such expert testimony is not useful or credible.

A technique that is common in Australia, and has been gaining traction in the Tax Court, is the use of concurrent expert testimony.  This technique—referred to as “hot tubbing”—involves expert witnesses engaged by the taxpayer and the Internal Revenue Service (IRS) conferring directly with the judge and engaging in conversation about the evidence in the case and their opinion.   (more…)