Goldsmith v. United States Board of Tax Appeals

Background

H. Ely Goldsmith, a citizen of New York and a certified public accountant, applied to the United States Board of Tax Appeals to be enrolled to represent taxpayers. The Board had published rules that made lawyers and certified public accountants eligible but allowed the Board to deny admission in its discretion. After a committee investigated, the Board denied Goldsmith’s application, citing earlier official actions and a Treasury rejection, and Goldsmith then filed a mandamus petition asking a court to force the Board to enroll him and stop the Board from blocking his appearances.

Reasoning

The key question was whether the Board could adopt rules limiting who may appear for taxpayers and whether Goldsmith could get immediate court relief. The Court held that the Board’s authority to prescribe procedure includes making rules for admission because such rules are necessary for its quasi‑judicial work. The Court also said that denying admission must follow fair process — notice, investigation, and an opportunity to be heard. Goldsmith did not seek a hearing with the Board before asking the court for a mandamus order. Because he failed to pursue the administrative hearing first, he was not entitled to mandamus, and the lower courts’ dismissal was affirmed.

Real world impact

The ruling allows the tax appeals board to set qualification rules for representatives while confirming applicants must be given a chance to respond before exclusion. Practitioners should request an administrative hearing before asking courts for relief; courts will not order immediate enrollment when an applicant bypasses the Board’s process.