Small Business Taxes & Management

Tax Court Cases--2016


Small Business Taxes & ManagementTM--Copyright 2016, A/N Group, Inc.

 

Below is a list of the 2016 cases of the U.S. Tax Court with direct links to the full text at the Tax Court web site. The text of the cases is in PDF format, so an Adobe Acrobat Reader is required. The case name may differ from the official Tax Court name. We've substituted et ux. and et vir for the spouse's full name and et al. for additional petitioners. The list below contains the case name, cite, the Code sections and key words for the issues in the case. We've kept the key word list short to make searches easy. Use the "find-in-page" or "find" feature of your browser (CTRL-F) to search this list. Be sure to try variations of keywords such as "activities" as well as "activity"; "depreciation" as well as "depreciate". Please note that the mention of an issue does not in any way imply the outcome. For example, if "fraud penalty " is mentioned, that only means the fraud penalty was an issue, not that it was imposed or rejected by the Court. Hypenation has become an art form. Try searches with and without. The majority of cases mention Sec. 7491 (Burden of Proof); we have not listed it unless it was a significant issue. Keep in mind that you can go to the U.S. Tax Court at www.ustaxcourt.gov and use their search engine (use the "Opinions Search" tab) to look for additional cases or words that we have not indexed. Their site contains full Tax Court cases (TC) and Tax Court Memorandum Opinions starting September 25, 1995 and Summary Opinions starting January 1, 2001.

For a similar synopsis of cases for prior years, go to:

Tax Court Cases--2015
Tax Court Cases--2014
Tax Court Cases--2013
Tax Court Cases--2012
Tax Court Cases--2011
Tax Court Cases--2010
Tax Court Cases--2009
Tax Court Cases--2008
Tax Court Cases--2007
Tax Court Cases--2006
Tax Court Cases--2005
Tax Court Cases--2004

 

New Additions - Week Ended December 31, 2016

Tax Court Cases

None

 

Memorandum Decisions

Sam T. Jewell T.C. Memo. 2016-239 Sec. 6320; 6330; hearing before filing lien notice; hearing before levy; collection due process; property owned by related entity; Tax Court jurisdiction over liability and additional NFTL filings.
Ryan M. Fleischer T.C. Memo. 2016-238 Sec. 61; 482; gross income definition; allocation of income and deductions among taxpayers; assignment of income to S corporation; ability of S corporation to conduct claimed business.
Kenneth Pitner T.C. Memo. 2016-237 Sec. 6159; 6320; 6330; installment agreements; hearing on filing lien notice; hearing before levy; collection due process; proposed monthly payment less than ability to pay; abuse of discretion.
Urve V. Moyer, Incompetent, Calvin L. Moyer, Next Friend T.C. Memo. 2016-236 Sec. 162; 183; Tax Court Rule 151; business expenses; not-for-profit activities; failure to brief issue; hobby losses; activity not conducted in a business-like manner; failure to file S corporation returns.
Jo Ann Snodgrass T.C. Memo. 2016-235 Sec. 6330; 6673; hearing before levy; penalty for delay; collection due process; frivolous arguments; substitute for return; SFR; collection alternatives.

 

Summary Opinions

None

 

Cumulative Cases - 2016

Tax Court Cases

15 West 17th Street LLC et al. 147 T.C. No. 19 Sec. 170; contemporaneous written acknowledgment from donee; letter by donee not qualified; no goods or services for gift.
Silver Medical Inc. 147 T.C. No. 18 Sec. 48D; qualifying therapeutic discovery project; tax credit; not certified in year investments made; grant denied.
Estate of Steve K. Backemeyer, Deceased, Julie K. Backemeyer, Personal Representative 147 T.C. No. 17 Sec. 111; recovery of tax benefit items; previously deducted items; estate tax intervened; use of farm inputs; acquisition by inheritance; recapture of deductions.
Lawrence G. Graev et ux. 147 T.C. No. 16 Sec. 6662; 6664; 6751; accuracy-related penalty; reasonable cause; burden of proof; conservation easement contribution; facade easement; side letter on contribution.
Analog Devices, Inc. and Subsidiaries 147 T.C. No. 15 Sec. 965; temporary dividends received deduction; controlled foreign corporation; repatriation of cash dividends; closing agreement with respect to accounts receivable; arm's-length pricing; accounts receivable and related party indebtedness.
Pizza Pro Equipment Leasing, Inc. 147 T.C. No. 14 Sec. 404; 4972; 6011; 6651; deduction for employer contributions to pension plan; tax on nondeductible employer plan contributions; general requirement of return; failure to file or pay; excise tax on excess contributions; contributions to single-participant defined benefit plan; plan overfunded.
David B. Greenberg 147 T.C. No. 13 Sec. 7430; attorney's fees; administrative and litigation costs; prevailing party; jurisdiction; proper person to file claim.
Whistleblower 26876-15w 147 T.C. No. 12 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower; jurisdiction; original determination letter; petition timely; denial of award valid; director's signature not necessary.
Estate of James Heller, Deceased, Barbara H. Freitage, Harry H. Falk, and Steven P. Heller, Co-Executors 147 T.C. No. 11 Sec. 2054; losses; estate tax deductions; theft loss; Madoff Securities account.
Cave Buttes, L.L.C., Michael Wolfe, Tax Matters Partner 147 T.C. No. 10 Sec. 170; charitable contributions; real property; qualified appraisal; fair market value of property determined; real property; substantial compliance with requirements.
Exelon Corporation, as Successor by Merger to Unicom Corporation and Subsidiaries, et al. 147 T.C. No. 9 Sec. 467; 1001; 1031; 1272; 6662; 6664; payments for the use of property or services; amount of gain or loss recognition; like-kind exchange; original issue discount income; accuracy-related penalty; reasonable cause; sale and leaseback; sale in, lease out; SILO; substance over form; transactions recharacterized.
Cri-Leslie, LLC, Donald W. Wallace, Tax Matters Partner 147 T.C. No. 8 Sec. 1231; 1234A; property used in a trade or business; gains or losses from certain terminations; TEFRA partnership; retention of forfeited deposits canceled sale of real property; capital gain treatment.
Renee Vento, et al. 147 T.C. No. 7 Sec. 901; 904; 932; foreign and possessions taxes; limitation on credit; coordination of U.S. and Virgin Islands taxes; resident of Virgin Islands; taxes creditable.
Charles J. Weiss 147 T.C. No. 6 Sec. 6330; 6502; hearing before levy; collection after assessment; notice of levy; collection due process; collections limitation period; mismatch of mailing and letter date.
Estate of George H. Bartell, Jr. Deceased, George David Bartell and Jean Louise Bartell Barber, Co-Personal Representatives and Estate of Elizabeth Bartell, Deceased, George David Bartell and Jean Louise Bartell Barber, Co-Personal Representatives, et al. 147 T.C. No. 5 Sec. 1031; like-kind exchange; qualified intermediary; ownership of parcel to be acquired; ownership of replacement property prior to exchange; benefits-and-burdens test.
Whistleblower 21276-13W 147 T.C. No. 4 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower; restitution, criminal fine, civil forfeitures as collected proceeds.
Whistleblower 11099-13W 147 T.C. No. 3 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower; discovery; IRS required to produce documents leading to decision to deny award.
CGG Americas, Inc. 147 T.C. No. 2 Sec. 167; depreciation; amortization; geophysical and geological expenses; oil and gas exploration; ownership in mineral interests.
Green Gas Delaware Statutory Trust 147 T.C. No. 1 Sec. 45K; 162; 6662; nonconventional fuel source credit; business expenses; accuracy-related penalty; placed-in-service date; substantiation of production and sale of gas produced; definition of placed in service; substantiation of expenses; documentation; recordkeeping.

Felix Guralnik 146 T.C. No. 15 Sec. 6330; 7502; hearing before levy; timely mailing as timely filing; 30-day filing requirement for petition; collection due process; use of non-designated private delivery service; Tax Court inaccessible because of weather.
Bryan S. Alterman Trust U/A/D May 9, 2000, Bryan S. Alterman, Trustee, Transferee 146 T.C. No. 14 Sec. 7430; attorney's fees; litigation costs; prevailing party; net worth limit.
Douglas G. Carroll III and Deirdre M. Smith 146 T.C. No. 13 Sec. 170; 6662; charitable contribution; accuracy-related penalty; qualified conservation easement; conservation purpose protected in perpetuity; extinguishment proceeds.
Nadine L. Vichich 146 T.C. No. 12 Sec. 53; credit for prior year minimum tax liability; carryover credit; credit from deceased husband generated while married to prior wife; inheritance of carryover benefit.
Estate of Clara M. Morrissette, Deceased, Kenneth Morrissette, Donald J. Morrissette, and Arthur E. Morrissette, Personal Representatives 146 T.C. No. 11 Sec. 61; gross income definition; split-dollar life insurance arrangements; valuation; gift tax; economic benefit.
Peter L. Ax et ux. 146 T.C. No. 10 Tax Court Rules 41 and 142.
Bohdan Senyszyn et ux. 146 T.C. No. 9 Sec. 61; 1341; 6211; 7453; gross income definition; taxpayer restoration of amount under claim of right; deficiency definition; rules of practice, procedure, and evidence; embezzlement; benefits received and repaid; accounting method; collateral estoppel; net worth increase method.
Estate of Victoria E. Dieringer, Deceased, Eugene Dieringer, Executor 146 T.C. No. 8 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; valuation of closely held business; discount for lack of control; discount for marketability; events post death that changed the valuation; charitable contribution; private foundation.
James E. Thiessen et ux. 146 T.C. No. 7 Sec. 4975; 6501; tax on prohibited transactions; limitations on assessment and collection; business owned by IRAs; personal guarantee of loan; deemed distribution.
Whistleblower 22716-13W 146 T.C. No. 6 Sec. 6665; 7623; applicable rules; expenses of detection of underpayments and fraud; whistleblower awards; $2 million threshold requirement; failure to file foreign bank account report; FBAR.
Guidant LLC f.k.a. Guidant Corporation and Subsidiaries, et al. 146 T.C. No. 5 Sec. 482; allocation of income and deductions among taxpayers; transfer pricing; no abuse of discretion; determination of consolidated taxable income and separate taxable income; reflection of group's true net income.
Isaiah Bongam 146 T.C. No. 4 Sec. 6330; hearing before levy; collection due process; Notice of Determination; petition timely; notice mailed to incorrect address; remailing of notice.
Michael Jones and M. Chastain Jones 146 T.C. No. 3 Sec. 62; 162; 6662; adjusted gross income definition; business expenses; accuracy-related penalty; state court judge; fee-based official; fees received directly from public; expenses subject to 2% floor on itemized deductions.
LG Kendrick, LLC 146 T.C. No. 2 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; jurisdiction; supplemental Notice of Determination; challenge of underlying liabilities; notices invalid.
Gerd Topsnik 146 T.C. No. 1 Sec. 453B; 877A; gain or loss on disposition of installment obligations; tax responsibilities of expatriation; expatriation; gain on deemed sale; German resident status; lawful permanent resident.

 

Memorandum Decisions

Sam T. Jewell T.C. Memo. 2016-239 Sec. 6320; 6330; hearing before filing lien notice; hearing before levy; collection due process; property owned by related entity; Tax Court jurisdiction over liability and additional NFTL filings.
Ryan M. Fleischer T.C. Memo. 2016-238 Sec. 61; 482; gross income definition; allocation of income and deductions among taxpayers; assignment of income to S corporation; ability of S corporation to conduct claimed business.
Kenneth Pitner T.C. Memo. 2016-237 Sec. 6159; 6320; 6330; installment agreements; hearing on filing lien notice; hearing before levy; collection due process; proposed monthly payment less than ability to pay; abuse of discretion.
Urve V. Moyer, Incompetent, Calvin L. Moyer, Next Friend T.C. Memo. 2016-236 Sec. 162; 183; Tax Court Rule 151; business expenses; not-for-profit activities; failure to brief issue; hobby losses; activity not conducted in a business-like manner; failure to file S corporation returns.
Jo Ann Snodgrass T.C. Memo. 2016-235 Sec. 6330; 6673; hearing before levy; penalty for delay; collection due process; frivolous arguments; substitute for return; SFR; collection alternatives.
Cecilia M. Hylton T.C. Memo. 2016-234 Sec. 162; 183; 6651; 6662; 6664; business expenses; not-for-profit activities; failure to file or pay; accuracy-related penalty; reasonable cause; quarter-horse activity; failure to show a profit; failure to seek financial advice; information provided to accountant; reliance on tax professional.
Phyllia W. McGrady et vir T.C. Memo. 2016-233 Sec. 170; 6662; 6664; charitable contributions; accuracy-related penalty; reasonable cause; conservation easement; quid pro quo; planning of developments and subdivisions; valuation of easements.
Bobby R. Hargis et ux. T.C. Memo. 2016-232 Sec. 1366; pass-through items to shareholders; basis in S corporation; funds advanced by related entity.
Nathan A. Peake T.C. Memo. 2016-231 Sec. 6651; 6654; failure to file or pay; failure to pay estimated tax; fraudulent failure to file; prior plea to tax evasion; case dismissed for failure to prosecute.
Sara Archer and Robert Archer T.C. Memo. 2016-230 Sec. 6330; hearing before levy; collection due process; timely mailing of valid deficiency notice; certified mail receipt; burden of proof of nonreceipt on taxpayer.
Walter S. Mack, Jr. et ux. T.C. Memo. 2016-229 Sec. 702; 6662; 6664; income and credits of partner; accuracy-related penalty; reasonable cause; share of partnership income reportable; obligation to pay partnership expenses.
Suzanne D. Oster Ozimkoski T.C. Memo. 2016-228 Sec. 61; 72; 408; 6651; 6662; 6664; gross income definition; early distribution; individual retirement accounts; failure to file or pay; accuracy-related penalty; reasonable cause; error by financial institution; distributions from deceased spouse's IRA; reasonable cause for failure to file.
Calvin T. Morton T.C. Memo. 2016-227 Sec. 6330; hearing before levy; collection due process; notice and demand for payment correctly issue; collection alternative.
Ad Investment 2000 Fund LLC, Community Media, Inc. et al. T.C. Memo. 2016-226 Sec. 6231; notice of proceedings and adjustments; Son-of-BOSS; economic substance; tax avoidance purpose; abusive tax shelter.
Jerald L. Carmody T.C. Memo. 2016-225 Sec. 162; 170; 183; 6662; 6664; business expenses; charitable contributions; not-for-profit activities; accuracy-related penalty; reasonable cause; horse-racing activity; business plan; budget; business records for improving business; personal and activity finances commingled; history of losses.
Wasco Real Properties I, LLC et al. T.C. Memo. 2016-224 Sec. 263A; 481; uniform capitalization rules; adjustments required in accounting method changes; capitalization of interest on debt allocable to land; almond farming; related party loan interest capitalization rules; capitalization of taxes.
Community Education Foundation T.C. Memo. 2016-223 Sec. 501; exempt organizations; educational organizations; operation exclusively for exempt purpose; engagement in activity for exempt purposes; organization inactive.
Naren Chaganti T.C. Memo. 2016-222 Sec. 162; 165; 172; 274; 901; 1402; 6651; 6662; 6664; business expenses; losses; net operating losses; business expense substantiation; foreign tax credit; net earnings from self-employment; failure to file or pay; accuracy-related penalty; reasonable cause; travel, meals and entertainment expenses; lodging expense; substantiation; recordkeeping; documentation; proof of payment of foreign tax; failure to show NOL carryforward.
Boris Putanec and Jeana J. Toney T.C. Memo. 2016-221 Sec. 1011; 1256; adjusted basis for determining gain or loss; Section 1245 contracts mark to market; capital loss on redemption of note; Custom Adjustable Rate Debt Structure transaction; CARDS; insufficient basis; foreign currency contract; Sec.1256(g)(2)(A); 40-percent short-term capital loss; 60-percent long-term capital loss.
Chinweike Nwabasili T.C. Memo. 2016-220 Sec. 703; 6662; 6664; partnership computations; accuracy-related penalty; reasonable cause; sole proprietorship vs. partnership; expenses deductible by partnership not individual.
Robert L. Anderson T.C. Memo. 2016-219 Sec. 6330; 6672; hearing before levy; failure to collect and pay over taxes; trust fund recovery penalty; collection due process; contest underlying taxes; prior opportunity; requested delay.
Ajibola O. Ibidunni T.C. Memo. 2016-218 Sec. 165; 280A; 446; 6662; 6664; losses; disallowance of expenses in connection with dwelling unit; methods of accounting; accuracy-related penalty; reasonable cause; abandonment of partnership interest; proof of ownership interest in loss property; rental of 15 days or less; unreported income; bank deposits method; failure to keep adequate books and records; failure to identify nontaxable deposits.
Richard Isaac Fine and Maryellen Olman-Fine T.C. Memo. 2016-217 Sec. 6320; 6330; hearing before filing lien notice; hearing before levy; collection due process; collection alternatives; financial information lacking; failure to make offer-in-compromise; currently not collectible.
Transupport, Incorporated T.C. Memo. 2016-216 Sec. 162; 6662; business expenses; accuracy-related penalty; cost of goods sold; wages; compensation paid to shareholder's relatives; obsolete inventory; reliance on accountant; information given to accountant.
Glen A. Blair T.C. Memo. 2016-215 Sec. 72; 6651; 6654; 6673; early distribution; failure to file or pay; failure to pay estimated taxes; penalty for delay; frivolous arguments.
Malcolm D. Alexander T.C. Memo. 2016-214 Sec. 152; 162; 163; 213; 274; 280A; 6651; 6654; dependent definition; business expenses; interest expense; medical and dental expenses; business expense substantiation; disallowance of expenses in connection with dwelling unit; failure to file or pay; failure to pay estimated taxes; substantiation; recordkeeping; documentation; home office; regular and exclusive use; home mortgage interest; wages paid to stepson; ordinary and necessary; abode of dependent.
Roger L. Lingren T.C. Memo. 2016-213 Sec. 162; 274; business expenses; business expense substantiation; travel expenses; artist's travel expenses; documentation; recordkeeping; vehicle recordkeeping; supporting evidence.
Cari Barnes T.C. Memo. 2016-212 Sec. 61; 162; 164; 170; 212; 280A; 6662; 6664; 7491; gross income definition; business expense; interest expense; charitable contributions; expenses for the production of income; disallowance of expenses in connection with dwelling unit; accuracy-related penalty; reasonable cause; burden of proof; unreported income; bank deposits method; failure to keep books and records; source of deposits; vehicle recordkeeping; expenses with rental of property disallowed; fair rental value; charitable contribution recordkeeping.
Patricia J. Anderson and Thomas Brodersen T.C. Memo. 2016-211 Sec. 6330; hearing before levy; collection due process; allocation of voluntary payment; face-to-face hearing denied; failure to timely submit financial information; offer-in-compromise less than reasonable collection potential.
Barry R. Skog T.C. Memo. 2016-210 Sec. 408; individual retirement account; 60-day rollover period; transfer to irrevocable trust; proof of deposit in account; 60-day requirement.
The Malulani Group, Limited and Subsidiary T.C. Memo. 2016-209 Sec. 1031; like-kind exchange; related party transaction; property exchanged with subsidiary; tax avoidance purpose; business motive.
Jose R. Pena T.C. Memo. 2016-208 Sec. 61; 446; 6663; gross income definition; methods of accounting; fraud; reconstruction of income unit and volume method; undeposited cash; badges of fraud; personal expenses claimed as business expenses; deemed admissions.
Joseph Franklin T.C. Memo. 2016-207 Sec. 61; 108; 316; 408; 1366; 1368; 6020; 6651; 6654; 6662; 6664; gross income definition; cancellation of debt income; dividend defined; individual retirement accounts; pass-through items to shareholders; distributions; substitute for return; failure to file or pay; failure to make estimated payments; accuracy-related penalty; reasonable cause; loan from S corporation; loan as distribution; accumulated earnings and profits; constructive distribution; S corporation indebted to taxpayer for payment of corporate loan; unreported income; unexplained bank deposits; cancellation of debt income; SFR; IRS burden of production.
William E. Lowe et ux. T.C. Memo. 2016-206 Sec. 24; 152; child tax credit; dependent definition; qualifying child; noncustodial parent; Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent; divorce consent judgment conditional.
Bradley A. Ballard T.C. Memo. 2016-205 Sec. 61; 6651; 6663; Tax Court Rules 91; 123; gross income definition; failure to file or pay; fraud; deemed admissions; admissions at trial; reconstruction of income; bank deposits method; badges of fraud; illegal activities.
Estate of Robert C. Duncan, Deceased; et al. T.C. Memo. 2016-204 6330; 7122; hearing before levy; offer-in-compromise; challenge of underlying tax liability; Form 4549 signed; waiver of right to challenge assessment; requirement to issue deficiency notices; reasonable collection potential; dissipation of assets; economic hardship.
Ward Dean T.C. Memo. 2016-203 Sec. 6065; 6330; verification of returns; hearing before levy; collection due process; validity of Notice of Federal Tax Lien.
Harold P. Kupersmit T.C. Memo. 2016-202 Sec. 61; 86; 1221; 6651; 6654; gross income definition; social security benefits; capital asset; failure to file or pay; failure to make estimated payment; income and exchanges reported on Form 1099; gambling income.
Jeffrey C. Woody T.C. Memo. 2016-201 Sec. 6330; hearing before levy; collection due process; lack of jurisdiction; late filed request for hearing.
Yosef A. Tsehay T.C. Memo. 2016-200 Sec. 2; 24; 32; 152;6662; 6664; head of household; child tax credit; earned income credit; dependent definition; EITC; taxpayers' testimony; minor children lived with taxpayer; married.
Christina M. Fitzpatrick T.C. Memo. 2016-199 Sec. 6672; failure to collect and pay over tax; trust fund recovery penalties; responsible person; willfulness; performance of ministerial duties; signator on payroll checks.
Urgent Care Nurses Registry T.C. Memo. 2016-198 Tax Court Rule 60; capacity of corporation to engage in litigation; corporate powers suspended by state; formal dissolution.
Howard Bruce Coates et ux. T.C. Memo. 2016-197 Sec. 165; 6662; 6664; casualty losses; accuracy-related penalty; reasonable cause; fair market value before and after tornado damage; taxpayer's testimony; credible and knowledgeable; experience with buying and selling similar property; establishment of basis in property.
Clifton E. Stanley et ux. T.C. Memo. 2016-196 Sec. 61; 162; 163; 274; 6662; 6664; gross income definition; business expenses; interest expense; business expense substantiation; accuracy-related penalty; reasonable cause; unreported income; deposits as loans; loan substantiation; vehicle expenses; documentation; recordkeeping; personal vs. business interest; allocation of interest expense.
Stephen T. Rangen et ux. T.C. Memo. 2016-195 Sec. 162; 212; 274; 6662; 6664; business expenses; expenses for the production of income; business expense substantiation; accuracy-related penalty; reasonable cause; writing activity; substantial regularity; trade or business; reasonable relationship to production of income; recordkeeping; documentation; vehicle expense.
W. Morgan Parker et ux. T.C. Memo. 2016-194 Sec. 61; 162; 274; 6662; 6664; gross income definition; business expenses; business expense substantiation; accuracy-related penalty; reasonable cause; unreported income; reconstruction of income; bank deposits method; Cohan rule; substantiation of business purpose.
Michael Shamrock et ux. T.C. Memo. 2016-193 Sec. 6673; Tax Court Rule 91; penalty for delay; warning; adequate representation; set aside of stipulation; attorney's failure to meet continuing legal education requirements and pay bar dues.
Michael J. St. Claire T.C. Memo. 2016-192 Sec. 7430; attorney's fees; administrative and litigation costs; determination of administrative costs; IRS substantially justified; special expertise.
Robert Talbot T.C. Memo. 2016-191 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; mailing of deficiency notices; underlying liability; reliance on IRS certified mailing list; incorrect address.
Palmer Ranch Holdings Ltd., Palmer Ranch Holdings, Inc., Tax Matters Partner T.C. Memo. 2016-190 Sec. 170; charitable contributions; supplemental opinion; valuation of easement; highest and best use; valuation adjusted for declining real estate market.
Marty Dale Martin T.C. Memo. 2016-189 Sec. 162; 174; 6662; 6664; business expenses; business expense substantiation; accuracy-related penalty; reasonable cause; unreimbursed employee business expenses; travel expenses to expand own practice; substantiation; documentation; recordkeeping.
Mary L. Hatcher et vir T.C. Memo. 2016-188 Sec. 166; 469; 6662; 6664; bad debt losses; passive loss limitation; accuracy-related penalty; reasonable cause; prudent lender; business vs. nonbusiness bad debt; personal relationship with debtor; rental real estate losses; real estate professional; 750 hour requirement.
Herb Vest T.C. Memo. 2016-187 Sec. 183; 453; not-for-profit activities; installment sales; investigative activity; factors considered in determining profit objective; sales between related entities; tax avoidance purpose.
Dwayne Smith T.C. Memo. 2016-186 Sec. 6320; 6330; 6672; hearing on filing lien notice; hearing on levy; failure to collect and pay over tax; collection due process; trust fund recovery penalty; TFRP.
Ramon Reynoso T.C. Memo. 2016-185 Sec. 162; 446; 1211; 6651; 6654; business expenses; methods of accounting; limitation on capital losses; failure to file or pay; failure to pay estimated tax; unreported income; failure to keep adequate records; mark-to-market election; fraudulent failure to file.
Heber E. Costello, LLC, Scott D. Costello, Single Member T.C. Memo. 2016-184 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; employment taxes; single member LLC; LLC merger with corporation.
Estate of Edward G. Beyer, Deceased, Craig E. Plassmeyer, Executor T.C. Memo. 2016-183 Sec. 529; 2031; 2036; 2503; 6651; 6662; 6664; qualified tuition programs; definition of gross estate; gifts made within three years of death; taxable gifts; failure to file or pay; accuracy-related penalty; reasonable cause; family limited partnership; no discount; retained interests; transfers for adequate consideration.
Dora Marie Martinez and Carlos Garcia T.C. Memo. 2016-182 Sec. 72; 6662; early distributions; accuracy-related penalty; loan from qualified plan; default on payments.
Shenita A. Hill T.C. Memo. 2016-181 85; 6662; 6664; unemployment compensation; accuracy-related penalty; reasonable cause; taxability of unemployment compensation; computer software.
Carey Clayton Mills T.C. Memo. 2016-180 Sec. 446; methods of accounting; cash vs. accrual method of accounting; Form 3115 Application for Change in Accounting Method.
Sharon L. Garrett T.C. Memo. 2016-179 Sec. 6213; restrictions applicable to deficiencies; evidence of mailing by IRS.
Victor Lesende et ux. T.C. Memo. 2016-178 Sec. 6404; abatement of interest; ministerial or managerial act; unreasonable error or delay.
Estate of Howard J. Barnhorst II, Deceased, et al. T.C. Memo. 2016-177 Sec. 105; 6662; 6664; amounts received from accident and sick plans; accuracy-related penalty; reasonable cause; disability income policy; nature of injury; requirements of employer-funded accident or health plan.
Ajai Prakash et ux. T.C. Memo. 2016-176 Sec. 6404; abatement of interest; balance verified by IRS misinterpreted; filing of amended returns; ministerial or managerial errors.
James William Harris T.C. Memo. 2016-175 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; deficiency notices sent; refusal of delivery; presumption of delivery.
Jay D. Schechter T.C. Memo. 2016-174 Sec. 419; 419A; welfare benefit plan; qualified asset account; qualified plan; 10-or-more employer requirement; records of additional employers in plan; experience-rating arrangements.
Juan P. Gomez T.C. Memo. 2016-173 Sec. 2; 24; 32; 152; filing status; child tax credit; earned income tax credit; dependent definition; additional child credit; head of household; mother as dependent; qualifying children; reside with taxpayer.
Bonita L. Perry T.C. Memo. 2016-172 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; unreported retirement distributions; underpayment on originally filed return; qualified amended return.
Maria G. Leslie T.C. Memo. 2016-171 Sec. 71; 165; 451; 6330; 6651; alimony; losses; taxable year of inclusion; hearing before levy; failure to file or pay; collection due process; theft loss; constructive receipt; collection alternatives; loss in year discovered; control over account.
Barnhart Ranch Co., et al. T.C. Memo. 2016-170 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; joint interest accounting system; losses attributable to corporation not shareholders; cattle ranching; corporation as agent; proof of asset ownership.
Adetutu Canty T.C. Memo. 2016-169 Sec. 6015; innocent spouse relief; knowledge of erroneous income and deductions resulting in understatement; failure to review returns.
John R. Galbraith et ux. T.C. Memo. 2016-168 Sec. 162; 274; 6662; 6664; business expenses; business expense substantiation; accuracy-related penalty; reasonable cause; mileage logs; business purpose; business purpose of travel; multiple cell phones; documentation; recordkeeping; office expenses and business purpose.
Ronald W. White T.C. Memo. 2016-167 Sec. 61; 1402; gross income definition; self-employment tax; vow of poverty; Rev. Rul. 77-290; remittance back to church.
Sam D. Kilpatrick T.C. Memo. 2016-166 Sec. 162; 163; 263; 274; 6662; 6664; business expenses; interest; capital expenditures; business expense substantiation; accuracy-related penalty; reasonable cause; auto recordkeeping; taxpayer's calendar and MapQuest; contemporaneous record.
Amas Canzoni T.C. Memo. 2016-165 Sec. 61; 6651; gross income definition; failure to file or pay; unreported income; gambling winnings; substitute for return; valid returns.
Joseph N. Hunter T.C. Memo. 2016-164 Sec. 6015; innocent spouse relief; equitable relief; tax liability attributable to taxpayer's income; unreported income; knowledge of joint return.
Spiridon Spireas and Amalia Kassapidis-Spireas T.C. Memo. 2016-163 Sec. 1235; sale or exchange of patents; retention of substantial rights; ordinary income vs. capital gain; license agreement.
Dale M. Conti T.C. Memo. 2016-162 Sec. 2; 151; 152; filing status; personal exemption; dependent definition; principal place of abode; head of household; qualifying children; qualifying relative; more than half of support.
Scott Singer Installations, Inc. T.C. Memo. 2016-161 Sec. 3401; 7436; wages definition; determination of employment status; sole shareholder; officer; advances to corporation capital in part bona fide loans.
Mary E. Barie et vir T.C. Memo. 2016-160 Sec. 72; 219; 408; early distributions; retirement saving; individual retirement account; earned income requirement; compensation.
Johnnie C. Walker T.C. Memo. 2016-159 Sec. 162; 274; 6651; 6662; 6664; business expenses; business expense substantiation; failure to file or pay; accuracy-related penalty; vehicle expenses; contract labor; reliance on accountant for return filing.
Armando Adames Rivas T.C. Memo. 2016-158 Sec. 2; 61; 108; 152; 162; 172; 274; 6651; 6662; 6664; filing status; gross income definition; cancellation of debt income; dependent definition; business expenses; net operating loss; business expense substantiation; failure to file or pay; accuracy-related penalty; reasonable cause; substantiation of days children resided with taxpayer; support provided; Form 8332; head of household; unreported income; gambling winnings; exemption to COD income; proof of claim of net operating loss.
Gregory A. Power et ux. T.C. Memo. 2016-157 Sec. 172; 1366; 6662; 6664; net operating loss; pass-through items to shareholders; accuracy-related penalty; reasonable cause; evidence of claimed loss; absorbtion of losses in intervening years; distributions in excess of stock basis; proof of stock basis; personal expenses paid by corporation.
Abraham J. George T.C. Memo. 2016-156 Sec. 62; 104; adjusted gross income definition; damage awards and sick pay; award for discrimination claim; physical sickness or injury; above-the-line deduction for legal fees.
Mark L. Nebeker T.C. Memo. 2016-155 Sec. 162; 274; 446; 481; 6662; 6664; business expenses; business expense substantiation; method of accounting; adjustments for changes in method of accounting; accuracy-related penalty; reasonable cause; relationship of participation in sports activity to business; ordinary and necessary; recordkeeping; documentation; hybrid method of accounting; cash and accrual mix; change of accounting methods; accuracy-related penalty; reasonable cause.
Salus Mundi Foundation, Transferee, Diebold Foundation, Inc., Transferee T.C. Memo. 2016-154 Sec. 6501; 6901; limitations on assessment and collection; transferred assets; six-year statute of limitations; 25 percent of income; transferee liability of shareholders; New York fraudulent transfer act.
Alfred B. Barrion T.C. Memo. 2016-153 Sec. 6651; failure to file or pay; Tax Court Rules 90 and 121; failure to provide reason for relief of penalty; substitute for return; failure to respond to discovery requests; unreported income.
Carolyn Rogers T.C. Memo. 2016-152 Sec. 6851; failure to file or pay; failure due to reasonable cause; year to claim casualty loss.
Eric Stephen Gerencser T.C. Memo. 2016-151 Sec. 911; 6662; 6664; foreign earned income exclusion; accuracy-related penalty; reasonable cause; NATO contractor; foreign tax credit; accrued foreign taxes.
Paul Anthony Cappel, Sr. T.C. Memo. 2016-150 Sec. 2; 24; 151; 152; head of household; child tax credit; personal exemptions; dependent definition; noncustodial parent; qualifying children; one-half of support; Form 8332, Release of Claim to Exemption for Children of Divorced or Separated Parents.
Karen Kaplan T.C. Memo. 2016-149 Sec. 164; 170; taxes; charitable contributions; deduction for state income taxes; jurisdiction regarding prior years; carryforward of state tax overpayments; substantiation of estimated tax payments.
Lawrence A. Tanzi et ux. T.C. Memo. 2016-148 Sec. 162; 262; 274; business expenses; personal expenses; business expense substantiation; unreimbursed employee business expenses; documentation of use of cell phone and computer for business; condition of employment.
Little Mountain Corporation T.C. Memo. 2016-147 Sec. 162; business expenses; reasonable compensation; failure to issue 1099-MISC; consulting fees to related entity; documentation for consulting fees; lack of dividends.
Beth M. Hailstock T.C. Memo. 2016-146 Sec. 61; 162; 163; 164; 170; 213; 469; 6651; 6662; 6664; gross income definition; business expenses; interest; taxes; charitable contributions; medical expenses; passive activity losses; failure to file or pay; accuracy-related penalty; reasonable cause; documentation; recordkeeping; substantiation; real estate professional; material participation; election to group properties.
Peter Szanto T.C. Memo. 2016-145 Sec. 162; 163; 164; 165; 167; 280A; 469; 6651; 6662; 6664; business expenses; interest; taxes; losses; depreciation; personal use of residence; passive loss limitation; failure to file or pay; accuracy-related penalty; reasonable cause; mortgage interest; material participation in rental; schedule C expenses; substantiation; documentation; proof of basis; real estate professional.
Robert L. Schwartz T.C. Memo. 2016-144 Sec. 61; 6663; 7442; gross income definition; fraud penalty; jurisdiction; reconstruction of income; recordkeeping; failure to keep adequate records; badges of fraud.
Charles A. Sisson et ux. T.C. Memo. 2016-143 Sec. 1398; 1402; Title 11 cases; net earnings from self-employment; work in U.S.; employee of quasi-governmentalagency; self-employment tax; wages vs. earnings from self-employment; bankruptcy estate.
Thomas L. Weintraut, Transferee, et al. T.C. Memo. 2016-142 Sec. 6901; transferred assets; corporation's transfer to stockholders; fraudulent transfer under state law (Indiana); insolvency as a result of transfers.
Pamela Hardin, Petitioner and Robert H. Lattinville, Intervenor T.C. Memo. 2016-141 Sec. 6015; 6673; innocent spouse relief; damages for delay; claim of abusive retaliation; supporting evidence; credible testimony.
Robert F. Batsch, et al. T.C. Memo. 2016-140 Sec. 6651; failure to file or pay; tax-protestor arguments; fraudulent failure to file penalty.
American Metallurgical Coal Co. and Subsidiaries T.C. Memo. 2016-139 Sec. 881; 1442; 6049; 6651; 6656; 6662; 6664; income of foreign corporation not connected with U.S. business; withholding on foreign corporations; returns regarding payment of interest; failure to file or pay; failure to deposit taxes; accuracy-related penalty; reasonable cause; portfolio interest; bona fide interest payments; FDAP; equity vs. debt; failure to file Forms 1042.
Jose M. Curet T.C. Memo. 2016-138 Sec. 933; 1401; 1402; 6651; income from Puerto Rico; self-employment tax; self-employment income; failure to file or pay; net earnings from self-employment; resident of Puerto Rico; resident for entire year.
Bohdan Senyszyn et ux. T.C. Memo. 2016-137 Tax Court Rule 161; motion to reconsider; collateral estoppel; denial of IRS's argument.
Embroidery Express, LLC; Brent L. Mcminn et ux. T.C. Memo. 2016-136 Sec. 162; 163; 167; 170; 183; 262; 274; 6662; 6664; business expenses; interest; depreciation; charitable contributions; not-for-profit activities; personal expenses; business expense substantiation; accuracy-related penalty; reasonable cause; business use of vehicles; motor home; recordkeeping; substantiation; documentation; description of property for charitable contribution; hobby losses; cattle raising; deer hunting preserve.
John M. Probandt T.C. Memo. 2016-135 Sec. 61; 162; 274; 702; 6651; 6662; 6664; gross income definition; business expenses; business expense substantiation; income and credits of partner; failure to file or pay; accuracy-related penalty; reasonable cause; partnership income reported on Schedule C; unreported income; partnership expenses paid personally; reimbursement by partnership; allowance under Cohan rule; failure to consult tax professional; destroyed records; no supporting testimony.
Mark Alva West T.C. Memo. 2016-134 Sec. 6330; 6404; 6651; hearing before levy; abatements; failure to file or pay; collection due process; abatement of interest; reasonable cause.
Jack R. Durland, Jr.; Tina D. Fausett and Jack R. Durland, Jr., Intervenor T.C. Memo. 2016-133 Sec. 446; 6015; 6501; 6663; methods of accounting; innocent spouse relief; limitations on assessment and collection; fraud penalty; reconstruction of income; specific-item method; inadequate books and records; recordkeeping; knowledge of understatements; economic benefit; notices issued before limitations period expired; fraudulent returns.
Michael A. Tricarichi, Transferee T.C. Memo. 2016-132 Sec. 6601; 6662; 6901; interest on underpayments; accuracy-related penalty; transferred assets; prenotice interest; federal law determination; recovery full liability from transferee.
Amazon.Com, Inc. & Subsidiaries T.C. Memo. 2016-131 Sec. 7461; Tax Court rules; protective order; portions of trial record; confidential information; third party intervention; request to intervene premature.
Christina A. Alphonso T.C. Memo. 2016-130 Sec. 165; losses; casualty losses; damage caused by progressive deterioration; loss caused by contributing factor even if sudden.
Bonnie Maria Armour, Mark V. Poulsen, Intervenor T.C. Memo. 2016-129 Sec. 6015; innocent spouse relief; knowledge of understatements of tax; underreporting of taxpayer's business income; equitable relief.
Gonzalo Luque et ux. T.C. Memo. 2016-128 Sec. 6402; 6512; 6513; refunds; petitions to Tax Court; time return deemed filed; overpayment credited against prior year liability by IRS; IRS practice; excess wage withholding as prepayment; Tax Court jurisdiction.
Richard Brewster Main T.C. Memo. 2016-127 Sec. 167; 183; 274; 280F; 6651; 6662; 6664; depreciation; not-for-profit activities; business expense substantiation; listed property; failure to file or pay; accuracy-related penalty; reasonable cause; vintage auto restoration; listed property recordkeeping; substantiation.
Chris Nguyen T.C. Memo. 2016-126 Sec. 61; 102; 162; 274; 6662; 6664; gross income definition; gifts and inheritances; business expenses; business expense substantiation; accuracy-related penalty; reasonable cause; unreported income; reconstruction of income; bank deposits method; recordkeeping; documentation; substantiation.
Keith A. Newman, Jr. T.C. Memo. 2016-125 Sec. 108; cancellation of debt; insolvency; 36-month testing period; presumption of discharge.
Ricky L. Ward T.C. Memo. 2016-124 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; genuine dispute for trial; satisfaction of verification requirements.
Charles C. L. Wang T.C. Memo. 2016-123 Sec. 1402; 6662; self-employment tax; accuracy-related penalty; real estate agent's commission income.
David Buffano T.C. Memo. 2016-122 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; failure to show mailing of deficiency notices by IRS; taxes not properly assessed; collection actions not sustained.
David P. Buffano T.C. Memo. 2016-121 Sec. 6330; hearing before levy; collection due process; proper mailing of deficiency notice; last known address; proof of mailing by IRS; challenge of underlying liabilities.
Emmanuel Ugochukwu Amadi et ux. T.C. Memo. 2016-120 Sec. 162; 274; business expenses; business expense substantiation; recordkeeping; documentation.
Estate of Richard L. Marshall, Deceased, Patsy L. Marshall, Personal Representative, and Patsy L. Marshall, Transferees, et al. Sec. T.C. Memo. 2016-119 Sec. 6901; transferee liability; transfers to avoid tax; tax-shelter transaction; shareholders and corporation; transaction disregarded.
John Finnegan et ux. T.C. Memo. 2016-118 Sec. 6501; 6662; limitation on assessment and collection; accuracy-related penalty; preparer's fraud kept statute open; duty to review tax returns.
Steven Eugene Edwards T.C. Memo. 2016-117 Sec. 61; 6663; gross income definition; fraud penalty; collateral estoppel; prior criminal proceeding.
Robert J. Squeri, et al. T.C. Memo. 2016-116 Sec. 6501; limitations on assessment and collection; duty of consistency; year income was reported; cash-method taxpayer; deposit vs. receipt of check.
Norma L. Slone, Transferee, et al. T.C. Memo. 2016-115 Sec. 6901; transferred assets; liability of shareholders as transferees of company sold; liquidating distribution; reliance on advisers.
Estate of Natale B. Giustina, Deceased, Laraway Michael Giustina, Executor T.C. Memo. 2016-114 Sec. 2031; definition of gross estate; valuation of limited partnership interest; going concern; premium for unique risk of the partnership; timber business; T.C. Memo. 2011-141, rev'd and rem'd, Ninth Circuit.
Joseph R. Belot T.C. Memo. 2016-113 Sec. 1041; 6662; transfers incident to divorce; accuracy-related penalty; cessation of marriage; sale of interests in marital business; nonrecognition of gain treatment.
Medtronic, Inc. and Consolidated Subsidiaries T.C. Memo. 2016-112 Sec. 367; 482; 936; foreign corporations; allocation of income and deductions among taxpayers; Puerto Rico and possession tax credit; royalty payments; controlled taxpayers; allocations; intangible assets; arm's length transactions.
James Clement Powell et ux. T.C. Memo. 2016-111 Sec. 86; 162; 213; 274; 6662; 6664; 7433; social security benefits; business expenses; medical and dental expenses; business expense substantiation; accuracy-related penalty; reasonable cause; action for damages; documentation; recordkeeping; vehicle expenses; jurisdiction for damage claim against IRS.
Kenneth L. Mallory et ux. T.C. Memo. 2016-110 Sec. 72; 6662; 6664; annuities; accuracy-related penalty; reasonable cause; constructive distribution from life insurance policy; debt exceeded cash surrender value; policy termination.
Ita Andrew Udeobong T.C. Memo. 2016-109 Sec. 61; 1341; 6662; 6664; gross income definition; claim of right; accuracy-related penalty; reasonable cause; repayment of fees reported as income.
Steven N. Levi et ux. T.C. Memo. 2016-108 Sec. 152; 162; 163; 164; 165; 170; 213; 215; 6651; 6662; dependent definition; business expenses; interest; taxes; losses; charitable contributions; medical expenses; alimony; failure to file or pay; accuracy-related penalty; substantiation; recordkeeping; documentation; reasonable cause.
James A. Ericson et ux. T.C. Memo. 2016-107 Sec. 61; 162; 6662; 6663; gross income definition; business expenses; accuracy-related penalty; fraud; unreported income; reconstructed income; bank deposits method; recordkeeping; substantiation; documentation; badges of fraud; statute of limitations.
Marco A. Frausto, Inc., and Marco A. Frausto T.C. Memo. 2016-106 Tax Court Rules 34 and 60; separate notice for each notice of deficiency; case to be brought in name of person against whom deficiency determined; state and existence of corporation; petition filed in individual capacity not representative of corporation; jurisdiction.
Aidan Ifeanyi Ogamba et ux. T.C. Memo. 2016-105 Sec. 61; 108; 152; 165; 6330; 6651; 6662; gross income definition; cancellation of indebtedness; dependent definition; losses; hearing before levy; failure to file or pay; accuracy-related penalty; collection due process; substantiation of capital losses on stock sale; issues not raised at collection due process hearing.
Richard Steinberger et ux. T.C. Memo. 2016-104 Sec. 183; 6662; 6664; not-for-profit activities; accuracy-related penalty; reasonable cause; combination of activities; ownership of plane and operation of plane; grouping of activities; profit motive; benefit to taxpayer's business.
Rickey L. Drilling T.C. Memo. 2016-103 Sec. 6330; hearing before levy; collection due process; Notice of Federal Tax Lien on property sustained; evidence of tax payments; rejection of offer-in-compromise.
Allied Transportation, Inc. T.C. Memo. 2016-102 Sec. 7442; jurisdiction; corporate charter revoked; legal capacity to prosecute; Maryland state law.
Nicholas Kavuma T.C. Memo. 2016-101 Sec. 61; 162; 274; 6651; 6662; 6664; gross income definition; business expenses; business expense substantiation; failure to file or pay; accuracy-related penalty; reasonable cause; proof of timely filing; documentation; recordkeeping; reconstruction of income; rental income; bank deposits method.
Emmanuel A. Santos T.C. Memo. 2016-100 Sec. 162; 262; business expenses; personal and living expenses; education expenses; qualification for new trade or business; law degree; maintain or improve skills.
Synergy Environmental, Inc. T.C. Memo. 2016-99 Sec. 6330; 7122; hearing before levy; offer-in-compromise; collection due process; Notice of Federal Tax Lien; NFTL; defunct corporation; offer-in-compromise rejected.
Dennis Norman T.C. Memo. 2016-98 Sec. 6330; hearing before levy; collection due process; proposed levy based on substitute for returns; SFR; collection alternative or offer-in-compromise not proposed.
John O. Drew et ux. T.C. Memo. 2016-97 Sec. 6320; 6330; 7122; hearing on filing lien notice; hearing before levy; compromises; rejection of offer-in-compromise; calculation of reasonable collection potential; failure to supply requested financial information.
Johnny Lara T.C. Memo. 2016-96 Sec. 25A; American Opportunity Tax Credit; tuition paid by Department of Veterans Affairs.
H.W. Johnson, Inc. T.C. Memo. 2016-95 Sec. 162; business expenses; reasonable compensation; fees to related LLC; amounts paid to guarantee supplies.
Christopher Dean Bailey T.C. Memo. 2016-94 Sec. 6330; hearing before levy; collection due process; filing of Notice of Federal Tax Lien sustained; rejection of installment agreement; failure to submit tax returns or financial information.
Lisa A. Nkonoki T.C. Memo. 2016-93 Sec. 162; 274; 6662; business expenses; business expense substantiation; recordkeeping; documentation; moving and storage expenses; failure to file opening briefs; introduction of evidence in Tax Court disallowed; gift expenses; car and truck expenses.
Adil K. Hiramanek, Petitioner, and Kamal Kapadia, Intervenor T.C. Memo. 2016-92 Sec. 6015; innocent spouse relief; joint return requirement not met; collateral estoppel; no claim for relief.
Thomas W. Allibone T.C. Memo. 2016-91 Sec. 7623; whistleblower claim; timely petition; IRS action starting 30-day period.
Robert W. Schlegel T.C. Memo. 2016-90 Sec. 6330; hearing before levy; collection due process; taxpayer asserted deficiency notices not received; last known address; failure to provide requested financial information.
Ginn Doose a.k.a. Virginia Doose T.C. Memo. 2016-89 Sec. 6330; hearing before levy; collection due process; currently not collectible; other arguments rejected.
Gary I. Terry T.C. Memo. 2016-88 Sec. 6330; 6402; hearing before levy; authority to make refunds; collection due process; refund used to offset debt; validity of debt.
Joseph Patrick Boyle T.C. Memo. 2016-87 Sec. 6015; innocent spouse relief; equitable relief; tax attributed to taxpayer's income; relief from interest and additions to tax, not tax.
Stephen H. Briggs et ux. T.C. Memo. 2016-86 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; frivolous arguments; reasonable misunderstanding of law.
Angela A. Terrell T.C. Memo. 2016-85 Sec. 25A; American Opportunity Tax Credit; date of payment; date loan proceeds credited to her tuition account; Form 1098-T not controlling.
John N. Alphson T.C. Memo. 2016-84 Sec. 6320; 7122; hearing on filing lien notice; compromises; rejection of offer in compromise; doubt as to collectibility; dissipated asset includible in reasonable collection potential.
Aditya Krishnan and Shakti Singh T.C. Memo. 2016-83 Sec. 6320; 6330; hearing upon filing of notice of lien; hearing before levy; collection due process; challenge of underlying liability; stipulated decision; self-reported liabilities.
Michael D. Brown et ux. T.C. Memo. 2016-82 Sec. 6159; 6330; installment agreements; hearing before levy; collection due process; jeopardy assessment; installment agreement would exceed collections limitation period; failure to produce requested documentation.
William Thomas Taylor T.C. Memo. 2016-81 Sec. 6212; 6213; notice of deficiency; restrictions applicable to deficiencies, petition to Tax Court; last known address; last filed return; change of address form.
RP Golf, LLC, SB Golf, LLC T.C. Memo. 2016-80 Sec. 170; charitable contribution; easement contribution; subordination agreements with security holders filed after conveyance; proper title not conveyed.
Terence K. Barnes et ux. T.C. Memo. 2016-79 Sec. 162; 170; 6662; 6664; business expenses; charitable contributions; accuracy-related penalty; reasonable cause; designer clothing as unreimbursed employee business expenses; documentation for noncash charitable contributions.
Martin Nitschke T.C. Memo. 2016-78 Sec. 61; 6651; 6654; 6673; gross income definition; failure to file or pay; failure to pay estimated tax; damages for delay; substitute for return; income from discharge of indebtedness; compensation for services on Form 1099-MISC; valid notice of deficiency.
Samuel S. Yasgur et ux. T.C. Memo. 2016-77 Sec. 6330; hearing before levy; collection due process; challenge of receipt of levy notice; challenge of underlying liability; presumption of official regularity.
Wilson Heirs Trust, R.S. Ohendalski, Trustee T.C. Memo. 2016-76 Sec. 6330; 6331; hearing before levy; levy and distraint; collection due process; frivolous arguments; trust's outstanding tax liabilities.
Lanny D. Walker T.C. Memo. 2016-75 Sec. 6330; 7122; hearing before levy; offer-in-compromise; collection due process; offer rejected on doubt as to collectibility; taxpayer's disability not raised at hearing.
Angelina Alhadi T.C. Memo. 2016-74 Sec. 1402; 6663; net earnings from self-employment; fraud; money coerced from employer; badges of fraud; care provider to elderly person.
Allen B. Miller T.C. Memo. 2016-73 Sec. 6651; failure to file or pay; failure to pay; return of tax data from delinquent preparer; unreasonable delay; extension of time to file.
Horace Monroe Chambers T.C. Memo. 2016-72 Sec. 61; 6651; gross income definition; failure to file or pay; annuity income from Civil Service Retirement System; substitute for return; SFR.
Amy Ndiaye Delia T.C. Memo. 2016-71 Sec. 162; 183; 6662; 6664; business expenses; not-for-profit activities; accuracy-related penalty; reasonable cause; not-for-profit activity; business relationship of expenses; ordinary and necessary; hobby losses.
David W. Strong T.C. Memo. 2016-70 Sec. 6330; 7122; hearing before levy; offer-in-compromise; reasonable collection potential several times amount of offer; taxpayer's payables owed to relatives; accounts receivable could be liquidated.
David H. Hoffmann et ux. T.C. Memo. 2016-69 Sec. 183; 6662; 6664; not-for-profit activities; accuracy-related penalty; reasonable cause; profit intent; review of factors; lease of aircraft to related business.
Tracia Callender T.C. Memo. 2016-68 Sec. 162; 6662; 6664; business expenses; accuracy-related penalty; reasonable cause; employee business expenses; substantiation; recordkeeping; documentation; relationship of expenses to employment; ordinary and necessary.
Mark Anres Green T.C. Memo. 2016-67 Sec. 61; 6651; 6654; 6663; gross income definition; failure to file or pay; failure to pay estimated tax; fraud; unreported income; self-employment tax; badges of fraud; frivolous claim of right assertion.
Larry O. Arobo et ux. T.C. Memo. 2016-66 Sec. 6015; innocent spouse relief; reason to know of understatement of tax; returns filed late; knowledge of responsibility to file accurate return.
Terry E. Hornbacker et ux. T.C. Memo. 2016-65 Sec. 6404; abatements; failure to show managerial or ministerial act caused delay in audit.
James E. Philbrick T.C. Memo. 2016-64 Sec. 162; 6651; 6662; 6664; business expenses; failure to file or pay; accuracy-related penalty; reasonable cause; substantiation; recordkeeping; documentation; failure to maintain records; failure to reconstruct stolen records.
Nik Lamas-Richie et ux. T.C. Memo. 2016-63 Sec. 702; 6662; 6664; income and credits of partner; accuracy-related penalty; reasonable cause; distributive share of partnership income; no distribution; failure by partnership to provide timely K-1.
B G Painting, Inc. T.C. Memo. 2016-62 Sec. 7436; determination of employment status; Form SS-8; classification of worker; employee vs. independent contractor.
Michael D. Hastings et ux. T.C. Memo. 2016-61 Sec. 162; 262; 274; 280A; 705; business expenses; business expense substantiation; personal, living and family expenses; business use of home; basis of partnership interest; unreimbursed employee expenses; travel and entertainment; vehicle use; telephone expense; partnership loss; basis in partnership; value of services no increase to basis.
Nutrition Formulators, Inc. T.C. Memo. 2016-60 Sec. 6330; 6651; 6656; hearing before levy; failure to file or pay; failure to deposit employment taxes; collection due process; victim of embezzlement; reasons for failure to deposit; penalty abatement.
Brenda Kappos T.C. Memo. 2016-59 Sec. 6404; 6611; abatements; interest on overpayments; jurisdiction; interest and penalty abated; claim for refund of overpayment or interest on overpayment.
Luis Alejandro Rey T.C. Memo. 2016-58 Sec. 446; 6651; 6662; methods of accounting; failure to file or pay; accuracy-related penalty; unreported income; bank deposit analysis; nontaxable deposits; proof.
Carlos A. Arizaga T.C. Memo. 2016-57 Sec. 162; 6651; 6662; 6664; business expenses; failure to file or pay; accuracy-related penalty; reasonable cause; Cohan rule; cost of goods sold; contract labor; deductions
Thomas L. Ryther T.C. Memo. 2016-56 Sec. 1402; self-employment income; trade or business; sales of scrap steel.
John J. Machacek, Jr. et ux.; Brenda S. Jones T.C. Memo. 2016-55 Sec. 61; 83; 162; 401; 402; 410; 6662; 6664; gross income definition; property transferred for performance of services; business expenses; qualified plans; taxability of beneficiary of employee's trusts; minimum participation standards; accuracy-related penalty; reasonable cause; split dollar life insurance; welfare benefit plans; nonqualified deferred compensation arrangement; plans funded by life insurance policies and/or annuities; qualified trust; coverage requirements.
Richard R. Rehn and Deborah S. Wheeler T.C. Memo. 2016-54 Sec. 6330; hearing before levy; collection due process; offer in compromise denied; face-to-face hearing; economic hardship.
Bayne French et ux. T.C. Memo. 2016-53 Sec. 170; charitable contribution; conservation easement; recordkeeping; contemporaneous written acknowledgment; dating of acknowledgment.
Paul W. Grauer T.C. Memo. 2016-52 Sec. 6502; collection after assessment; 10-year collection limitation period; failure to produce installment agreement.
Estate of Sarah D. Holliday, Deceased, et al. T.C. Memo. 2016-51 Sec. 2036; transfers with retained life estate; gross estate; property transferred to limited partnership includible in gross estate; possession or enjoyment retained.
James L. Avery et ux. T.C. Memo. 2016-50 Sec. 162; 274; 6662; 6664; business expenses; business expense substantiation; accuracy-related penalty; reasonable cause; auto substantiation; recordkeeping; documentation; competency of return preparer.
James T. O'Neal, Jr. et ux. T.C. Memo. 2016-49 Sec. 61; 172; 6501; 6651; 6663; gross income definition; net operating loss; limitations on assessment and collection; failure to file or pay; imposition of fraud; loans vs. income; business expenses and relationship to business; basis in S corporation; badges of fraud.
Scott Singer T.C. Memo. 2016-48 Sec. 6901; transferred assets; executor personally liable; estate not made insolvent; fiduciary.
Barry Maurice Anderson T.C. Memo. 2016-47 Sec. 71; 215; alimony; alimony; divorce or separation instrument; definition of alimony.
Kaylan J. Riley T.C. Memo. 2016-46 Sec. 165; losses; theft-loss; theft definition under state (California) law; year of worthlessness; prospect of recovery.
Mylan Inc. and Subsidiaries T.C. Memo. 2016-45 Sec. 1235; sale and exchange of patents; license of patent; transfer of exclusive rights; agreement ambiguous.
Makric Enterprises, Inc. T.C. Memo. 2016-44 Sec. 1001; 6662; 6664; determination of gain or loss; accuracy-related penalty; reasonable cause; sale of stock of subsidiary vs. sale of parent; written agreement; C.L. Danielson.
Howard E. May and Estate of Judith A. May, Deceased, Marcia M. May Personal Representative T.C. Memo. 2016-43 Sec. 6673; damages for delay; frivolous arguments; payment of government's excess costs.
Estate of Anthony La Sala, Deceased, Kenneth La Sala, Executor T.C. Memo. 2016-42 Sec. 6320; 6330; 6601; hearing on filing lien notice; hearing before levy; interest on underpayment; gift tax deficiency; annuity transaction; anticipated life expectancy; family limited partnership.
Joseph G. Spicko T.C. Memo. 2016-41 Sec. 475; 6012; 6651; 6654; accounting methods; required return; failure to file or pay; failure to pay estimated tax; mark-to-market election; reasonable cause; reliance on tax advisor.
Kimberly J. Gafford T.C. Memo. 2016-40 Sec. 6330; hearing before levy; collection due process; decision letter; equivalent hearing; frivolous return.
Charles E. Brown et ux. T.C. Memo. 2016-39 Sec. 170; 213; charitable contributions; medical expenses; substantiation; documentation; recordkeeping; contemporaneous written acknowledgment.
Hampton Software Development, LLC T.C. Memo. 2016-38 Sec. 6330; hearing before levy; collection due process; underlying tax liability; prior opportunity to dispute.
Syed Navaid T.C. Memo. 2016-37 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; garnishment of IRA; failure to determine taxability of court-ordered distribution; individual on notice; disclosure to preparer.
Benjamin J. Ashmore T.C. Memo. 2016-36 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; bankruptcy; IRS failure to file proof of claim; no evidence liability adjudicated; Tax Court jurisdiction.
Angel M. Rivera et ux. T.C. Memo. 2016-35 Sec. 61; gross income definition; refunds of state taxes vs. credits; state credits as taxable income.
Jose M. Dulanto et ux. T.C. Memo. 2016-34 Sec. 104; 6662; 6664; damage awards and sick pay; accuracy-related penalty; reasonable cause; personal physical injury or sickness; allocation of settlement claim giving rise to income.
Sally M. Costello; Brian L. Costello T.C. Memo. 2016-33 Sec. 1311; 1312; 1313; 1314; correction of error; circumstances of adjustment; definitions; amount and method of adjustment; notice of deficiency; IRS avoidance of limitations period; requirements and conditions of mitigation provisions; trust and beneficiaries.
Leonard L. Best et ux. T.C. Memo. 2016-32 Sec. 6203, 6673; method of assessment; damages for delay; excessive litigation costs of government.
Brian M. Polowniak T.C. Memo. 2016-31 Sec. 61; 162; 274; 4973; 6011; 6651; 6662A; 6664; gross income definition; business expenses; business expense substantiation; excess contributions to tax-favored accounts; general requirement of return; failure to file or pay; penalty on understatement related to reportable transactions; reasonable cause; excise tax return; excess contributions to Roth IRA; listed transaction.
Key Carpets Inc. et al. T.C. Memo. 2016-30 Sec. 162; 316; 6662; 6664; business expenses; dividend defined; accuracy-related penalty; reasonable cause; payments to employee of related company deductible in part; excess payments constructive dividends to common shareholder; benefit of amounts paid.
Mark Vandenbosch et ux. T.C. Memo. 2016-29 Sec. 72; 408; 6662; 6664; early distributions; individual retirement accounts; accuracy-related penalty; reasonable cause; reliance on professional; reinvestment of distributed funds done by beneficiary not IRA.
Raymond S. McGaugh T.C. Memo. 2016-28 Sec. 408; individual retirement accounts; self-directed IRA; no taxable distribution; funds used to purchased stock; stock certificate issued in name of custodian; no funds passed through taxpayer.
Bonnie J. Angle T.C. Memo. 2016-27 Sec. 7430; attorney's fees; litigation costs; prevailing party; qualified offer rule; failure to meet net worth test.
Harold Ray Stanley; Ellen Lorane Stanley T.C. Memo. 2016-26 Sec. 6015; 6330; innocent spouse relief; hearing before levy; collection due process; challenge of underlying liabilities; mailing of notice of deficiency.
Berkshire 2006-5, LLP et al. T.C. Memo. 2016-25 Sec. 6223; 6226; partners bound by actions of partnership; alternative to payment of imputed underpayment by partnership; FPAA; final partnership administrative adjustment; notice partner; notice requirements; failure to file petitions within statutory timeframe.
Charles R. Mangum and Estate of Marilyn Mangum, Deceased, Charles R. Mangum, Executor T.C. Memo. 2016-24 Sec. 6330; hearing before levy; collection due process; prior opportunity to challenge underlying liability; sham tax shelter; lack of economic substance; offer in compromise rejected.
Debra Rose Theresa Barbato et vir. T.C. Memo. 2016-23 Sec. 104; lack of physical injury; emotional distress not attributable to physical injury or illness.
LG Kendrick, LLC T.C. Memo. 2016-22 Sec. 6330; hearing before levy; collection due process; Notice of Federal Tax Lien; single member LLC; unemployment taxes; substitute returns prepared by IRS; lien withdrawal.
Juan Carlos Garia et ux. T.C. Memo. 2016-21 Sec. 162; 170; 213; 274; 6662; 6664; business expenses; charitable contributions; medical and dental expenses; business expense substantiation; accuracy-related penalty; reasonable cause; job hunting expenses; business purpose; business use of cell phone; clothing suitable for ordinary use; over-the-counter pharmacy items not deductible.
Brinks Gilson & Lione a Professional Corporation, Formerly Brinks Hofer Gilson & Lione a Professional Corporation T.C. Memo. 2016-20 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; good-faith reliance; advice of tax professional; reasonable reliance; substantial authority.
Alfred S. Co T.C. Memo. 2016-19 Sec. 911; 3401; 6662; 6664; foreign earned income exclusion; wages definition; accuracy-related penalty; reasonable cause; employee of U.S. government; determination based on common-law factors for employee vs. independent contractor.
Bruno Bruhwiler T.C. Memo. 2016-18 Sec. 61; 1401; 6020; 6651; 6673; gross income definition; self-employment tax; substitute for return; failure to file or pay; damages for delay; self-employment income; frivolous position; SFR.
David Peterson T.C. Memo. 2016-17 Sec. 6330; hearing before levy; collection due process; notice of deficiency properly mailed.
Michael G. Morris et ux. T.C. Memo. 2016-16 Sec. 6330; 6651; hearing before levy; failure to file or pay; collection due process; failure to provide documentation; failure to take steps to apply for lien relief; financial hardship; effort to conserve assets to satisfy tax liabilities.
Robert Leon Martin T.C. Memo. 2016-15 Sec. 61; 72; gross income definition; early distributions; unreported income; gambling winnings; deduction for penalty tax on early IRA distribution disallowed.
Colin C. McLeod, Jr. et ux. T.C. Memo. 2016-14 Sec. 6330; hearing before levy; collection due process; failure to submit finanical information; collection alternative.
Cornelius Allen et ux. T.C. Memo. 2016-13 Sec. 6330; hearing before levy; collection due process; issue of material fact; receipt of deficiency notice; adequate opportunity to challenge tax liability.
Endeavor Partners Fund, LLC, et al. T.C. Memo. 2016-12 Sec. 6111; 6707; 7421; 7482; disclosure of reportable transactions; failure to furnish information regarding reportable transactions; prohibition of suits to restrain assessment or collection; courts of review.
Rodney C. Niemann T.C. Memo. 2016-11 Sec. 162; 274; 1012; 6662; 6664; business expenses; business expense substantiation; basis in property; accuracy-related penalty; reasonable cause; recordkeeping; documentation; legal and professional fees related to investment; trade or business; issue not raised by IRS in timely manner.
Family Chiropractic Sports Injury & Rehab Clinic, Inc. T.C. Memo. 2016-10 Sec. 401; 501; 7476; qualified pension, profit-sharing, and stock bonus plans; tax exempt corporations; declaratory judgments relating to certain qualified retirement plans; Employee Stock Ownership Plan; ESOP; plan not qualified; related trust not exempt; qualified domestic relations order; reallocation of shares; failure to follow written terms; limits under Sec. 415(c) exceeded.
Brent Edward Crummey et ux. T.C. Memo. 2016-9 Sec. 6651; failure to file or pay; false returns; frivolous return; fraudulent failure to file conceded by IRS.
S.K. Shockley, Transferee, et al. T.C. Memo. 2016-8 Sec. 6601; interest on underpayments; date interest starts to accrue.
Jeffery J. Evans T.C. Memo. 2016-7 Sec. 165; 172; 1221; losses; net operating losses; capital asset; loss on foreclosure sale; year of loss; capital loss.
Farshid Ghafouri et ux. T.C. Memo. 2016-6 Sec. 172; 6662; 6664; net operating loss; accuracy-related penalty; reasonable cause; property generating loss not taxpayer's; proving ownership.
Jorge Quintanilla T.C. Memo. 2016-5 Sec. 3401; definitions; employee vs. independent contractor; degree of control.
June Aster Baptiste T.C. Memo. 2016-4 Sec. 6330; hearing before levy; collection due process; Form 433-A not submitted by taxpayer; collection alternative rejected; underlying tax liability.
Wayne Rebuck T.C. Memo. 2016-3 Sec. 6330; hearing before levy; collection due process; offer in compromise; OIC; tax shelter promoter penalties; criminal restitution; IRM guidelines followed.
Diane Blagaich T.C. Memo. 2016-2 Sec. 451; taxable year of inclusion; gross income; state court decision; gifts; collateral estoppel; income reported on Form 1099; no restriction on receipt; no obligation to repay; claim of right.
David R. Gemperle et ux. T.C. Memo. 2016-1 Sec. 170; 6662; 6664; charitable contributions; accuracy-related penalty; reasonable cause; conservation easement; gross valuation misstatement; substantial valuation misstatement; facade easement; qualified appraisal not attached.

 

Summary Opinions

Daniel Binns T.C. Summary Opinion 2016-90 Sec. 2; 24; 32; 152; head of household; child tax credit; earned income tax credit; dependent definition; relationship, age and support test; incarceration; qualifying child.
Edgar David Brown T.C. Summary Opinion 2016-89 Sec. 162; 274; 6651; 6662; 6664; business expenses; business expense substantiation; failure to file or pay; accuracy-related penalty; reasonable cause; personal deduction for payment of corporate expenses; job search expenses; relation to job search; records lost beyond taxpayer's control; reasonable cause for late filing.
Tao Long T.C. Summary Opinion 2016-88 Sc. 162; 183; 6662; 6664; business expenses; not-for-profit activities; accuracy-related penalty; reasonable cause; college expenses; skills used in current trade or business; failure to seek reimbursement from employer; real estate activity no gross income; factors considered; sophisticated taxpayer.
Robert V. Arkow T.C. Summary Opinion 2016-87 Sec. 61; 104; gross income definition; damage awards and sick pay; no personal injury or sickness.
Timothy Charles Qunell, Jr. T.C. Summary Opinion 2016-86 Sec. 911; 6651; 6662; foreign earned income tax credit; failure to file or pay; accuracy-related penalty; reasonable reliance; tax home in foreign country; working for U.S. Department of Defense; time in country transitory; abode.
Christian Sioui T.C. Summary Opinion 2016-85 Sec. 162; 262; 274; 6662; business expenses; personal expenses; business expense substantiation; accuracy-related penalty; claimed expenses reimbursed or reimbursable by company; recordkeeping; documentation.
Guthrie Washaurwa Chibanguza T.C. Summary Opinion 2016-84 Sec. 61; 446; 6662; 6664; gross income definition; methods of accounting; accuracy-related penalty; reasonable cause; distributive share of S corporation income; unreported gross receipts; reconstructed income; bank deposits method.
Curtis Lee Owens et ux. T.C. Summary Opinion 2016-83 Sec. 911; foreign earned income exclusion; civilian employee of U.S. agency.
Andrew Lee Stinson T.C. Summary Opinion 2016-82 Sec. 1401; 1402; self-employment tax; net earnings from self-employment; services performed with continuity and regularity; trade or business.
Gregory MacDonald Berry T.C. Summary Opinion 2016-81 Sec. 32; 1402; 6428; earned income credit; net earnings from self-employment; recovery rebate credit; one-time sales of tools and machinery not self-employment income.
John J. Ekeh T.C. Summary Opinion 2016-80 Sec/ 162; 212; 263; 469; 6662; 6664; business expenses; expenses for the production of income; capital expenditures; passive activity losses; accuracy-related penalty; reasonable cause; real estate professional; proof of time spent in activity; amounts required to be capitalized; broker's fee; meals and entertainment expenses.
Dwight McDonald and Donna McDonald T.C. Summary Opinion 2016-79 Sec. 6015; innocent spouse relief; real estate professional; actual awareness; reliance on CPA.
Gregor MacInnis T.C. Summary Opinion 2016-78 Sec. 6330; hearing before levy; collection due process; underlying liability; financial information for collection alternative.
Gary Frederick Roy T.C. Summary Opinion 2016-77 Sec. 162; 167; 274; 6662; 6664; business expenses; depreciation; business expense substantiation; accuracy-related penalty; reasonable cause; vehicle expenses; documentation; recordkeeping; professional membership fee; expenses related to trade or business.
Bohong Zhang et al. T.C. Summary Opinion 2016-76 Sec. 6015; innocent spouse relief; streamlined relief; economic hardship; basic living expenses; equitable relief; weighing of factors; knowledge of underpayment.
Amanda N. Vu T.C. Summary Opinion 2016-75 Sec. 6015; innocent spouse relief; lack of jurisdiction; petition to Tax Court before determination notice issued; timing of Form 8857, request for innocent spouse relief.
Karl D. Bobo et ux. T.C. Summary Opinion 2016-74 Sec. 61; 1001; gross income definition; gain or loss on disposition of asset; deed in lieu of foreclosure; cash for keys agreement; amount realized on property; vacation home.
Peter Phuong K. Pham and Bach T. Nguyen T.C. Summary Opinion 2016-73 Sec. 61; 165; gross income definition; losses; gambling losses; house players; documentation; reporting of gross winnings; substantiation; recordkeeping; basis for estimating gambling losses.
Orobosa Obayagbona T.C. Summary Opinion 2016-72 Sec. 162; 163; 475; 6662; 6664; business expenses; interest expense; mark to market accounting method; accuracy-related penalty; reasonable cause; ordinary and necessary expenses; trader or investor; mark to market election.
Hector Bawak Besong T.C. Summary Opinion 2016-71 Sec. 152; 162; 274; 6662; 6664; dependent defined; business expenses; business expense substantiation; accuracy-related penalty; reasonable cause; mother as qualifying relative; cost of goods sold; travel and entertainment.
Clyde A. Arashiro T.C. Summary Opinion 2016-70 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; negligence; losses from cattle-breeding partnership; IRS warning of abusive tax shelter.
Joseph L. Jackson et ux. T.C. Summary Opinion 2016-69 Sec. 61; gross income definition; pastor; nonemployee compensation vs. gifts; Form 1099-MISC.
Dennis K. Hicks et ux. T.C. Summary Opinion 2016-68 Sec. 162; 262; 274; 6662; 6664; business expenses; personal expenses; business expense substantiation; accuracy-related penalty; reasonable cause; Schedule C expenses personal vs. business; business nature of credit card interest; business purpose of expenses.
Harvey C. Hubbell Trust, et al. T.C. Summary Opinion 2016-67 Sec. 642; special rule for credits and deductions; trusts; charitable contributions; governing instrument of trust; charitable contributions not properly made not deductible.
James Clement Powell et ux. T.C. Summary Opinion 2016-66 Sec. 162; 165; 274; 1372; 7433; business expenses; losses; business expense substantiation; partnership rules for fringe benefit purposes; civil damages for unauthorized collection; health insurance fringe benefit; rounded mileage not estimated; S corporation operating loss carryforward; jurisdiction; credible witness; documentation; recordkeeping.
Julie Tishkoff T.C. Summary Opinion 2016-65 Sec. 61; 104; 6651; 6654; gross income definition; damage awards and sick pay; failure to file or pay; failure to pay estimated tax; lawsuit settlement; emotional distress; no reference to physical injuries or sickness.
Rosella Marie Hill T.C. Summary Opinion 2016-64 Sec. 61; 408; 6662; 6664; gross income definition; individual retirement account; accuracy-related penalty; reasonable cause; taxability of distributions from IRA.
Lawrence L. Cole T.C. Summary Opinion 2016-63 Sec. 162; 212; 274; 6662; 6664; business expenses; expenses for the production of income; business expense substantiation; accuracy-related penalty; reasonable cause; travel, meals and entertainment; ordinary and necessary; recordkeeping; documentation.
Betty Jean Spencer T.C. Summary Opinion 2016-62 Sec. 170; charitable contributions; noncash contributions; proof of contribution; substantiation; recordkeeping.
William Lester Kennedy, Jr. T.C. Summary Opinion 2016-61 Sec. 24; 152; 6662; 6664; child tax credit; dependent definition; accuracy-related penalty; reasonable cause; noncustodial parent; Form 8332; release of claim to exemption; support decree language on right to claim child conditional.
Andrew Christopher Sanek T.C. Summary Opinion 2016-60 Sec. 162; 274; 6662; 6664; business expenses; business expense substantiation; accuracy-related penalty; reasonable cause; unreimbursed employee business expenses; recordkeeping; documentation; work clothing; condition of employment.
Nathan Pilmer et ux. T.C. Summary Opinion 2016-59 Sec. 25A; American Opportunity Tax Credit; at least half of full-time workload.
Chris Robert Klein T.C. Summary Opinion 2016-58 Sec. 61; 6651; 6673; gross income definition; failure to file or pay; damages for delay; frivolous arguments.
Mario Joseph Collodi,Jr. et ux. T.C. Summary Opinion 2016-57 Sec. 162; 6662; 6664; business expenses; accuracy-related penalty; reasonable cause; unreimbursed employee business expenses; travel away from home; travel nondeductible personal expenses.
Diana C. Czekalski T.C. Summary Opinion 2016-56 Sec. 162; 213; 274; 6662; 6664; business expenses; medical expenses; business expense substantiation; accuracy-related penalty; reasonable cause; recordkeeping; documentation.
Warren Satchell T.C. Summary Opinion 2016-55 Sec. 6330; hearing before levy; collection due process; deficiency notice; first-time homebuyer credit rejected by Appeals Officer.
Donald Nathaniel Cooper, Jr. T.C. Summary Opinion 2016-54 Sec. 71; 215; 6662; alimony; alimony; accuracy-related penalty.
Eric L. Cox T.C. Summary Opinion 2016-53 6630; 6672; hearing before levy; failure to pay over taxes; collection due process; opportunity to dispute liability for trust fund recovery penalties; payment of penalty and refund action.
Bruce W. Peterson et ux. T.C. Summary Opinion 2016-52 Sec. 72; 6662; 6664; distributions from pension plans; accuracy-related penalty; reasonable cause; pension benefits rolled over to a single premium annuity that was canceled resulted in taxable income.
Tiffany Marie McSweeney T.C. Summary Opinion 2016-51 Sec. 2; 24; 32; 152; filing status; child tax credit; earned income credit; dependent definition; head of household status; qualifying child; qualifying relative; Form 8332; custodial status of child.
Christie M. Nawrot T.C. Summary Opinion 2016-50 Sec. 162; 212; 262; 274; 6662; 6664; business expenses; expenses for the production of income; personal and living expenses; business expense substantiation; accuracy-related penalty; reasonable cause; reimbursement by employer for business trips; clothing expense and requirement by employer.
Diran Li T.C. Summary Opinion 2016-49 Sec. 25A; 7701; education credits; definitions; substantial presence test; nonresident alien for part of the year; entitlement to credits.
Lavell White and Adriene White T.C. Summary Opinion 2016-48 Sec. 6015; innocent spouse relief; actual knowledge of items generating deficiency.
Djamal Mameri T.C. Summary Opinion 2016-47 Sec. 25A; education credits; computer as qualifying expense; computer requirement.
Richard G. Braddock T.C. Summary Opinion 2016-46 Sec. 104; 105; damage awards and sick pay; amounts received from accident and health plans; physical injury or illness; suit to receive long-term disability benefits.
Kevin A. Peck T.C. Summary Opinion 2016-45 Sec. 6511; limitations on credit or refund; claim time barred; financial disability.
Cynthia A. Bullock Petitioner and Brian Bullock, Intervenor T.C. Summary Opinion 2016-44 Sec. 6015; innocent spouse relief; liability due to requesting spouse; equitable relief.
Melissa A. Simonetta T.C. Summary Opinion 2016-43 Sec. 6015; innocent spouse relief; knowledge of understatement; equitable relief; expectation liability would be repaid; weighing of factors.
Julie A. Tizard T.C. Summary Opinion 2016-42 Sec. 195; start-up expenditures; active trade or business; formally advertise; no gross receipts.
Mandie Bradford Gaston T.C. Summary Opinion 2016-41 Sec. 162; 170; 263; 274; business expenses; charitable contributions; capital expenditures; business expense substantiation; documentation; recordkeeping; noncash contributions; description of donated property; repair vs. capital improvement.
Paul Parisi T.C. Summary Opinion 2016-40 Sec. 72; 408; 529; early distributions; individual retirement accounts; qualified tuition programs; no exception to IRA income inclusion; 10% penalty.
Ruben Jauregui T.C. Summary Opinion 2016-39 Sec. 162; 212; 274; 6662; 6664; business expenses; expenses for the production of income; business expense substantiation; accuracy-related penalty; reasonable cause; documentation; recordkeeping; mileage; auto use; uniforms and protective clothing.
Robert Carter, Jr. et ux. T.C. Summary Opinion 2016-38 Sec. 6330; hearing before levy; collection due process; proof of mailing of deficiency notice; presumption of receipt of notice; failure to submit requested documents; failure to communicate with IRS; collection alternative not requested.
Michael D. Hirsch et ux. T.C. Summary Opinion 2016-37 Sec. 162; 911; 6662; 6664; business expenses; foreign earned income exclusion; accuracy-related penalty; reasonable cause; out-of-country residence; travel expenses; no requirement for foreign residence; principal place of business in U.S.
Daniel L. Cook Sec. 25A; 151; 152; American Opportunity Tax Credit; personal exemption; dependent definition; qualifying child; qualifying relative; principal place of abode; over one-half of support.
Alex Kopaigora et ux. T.C. Summary Opinion 2016-35 Sec. 162; business expenses; itemized deductions; unreimbursed employee expenses; education expenses; Executive Master of Business Administration program.
James L. Evans T.C. Summary Opinion 2016-34 Sec. 6330; 6702; hearing before levy; frivolous returns; collection due process; frivolous on their face.
James David Jackson T.C. Summary Opinion 2016-33 Sec. 163; interest; qualified residence interest; legal title to property; legal obligation to pay.
John J. Sweeney et ux. T.C. Summary Opinion 2016-32 Sec. 6001; 6662; 6664; required records; accuracy-related penalty; reasonable cause; unreported income; Forms 1099-MISC; recordkeeping; documentation; substantiation.
Nayemul B. Chowdhury and Laila Banu T.C. Summary Opinion 2016-31 Sec. 108; 162; 165; 168; 197; 6662; 6664; cancellation of indebtedness; business expenses; losses; depreciation; amortization; accuracy-related penalty; reasonable cause; substantiation; documentation; recordkeeping; abandonment losses; computation of depreciation; computation of basis; unamortized basis.
Perry Walter Payne and Florence Nakakande Kasule T.C. Summary Opinion 2016-30 Sec. 170; 6662; 6664; charitable contributions; accuracy-related penalty; reasonable cause; noncash contributions; recordkeeping and reporting requirement; contemporaneous written acknowledgment; qualified valuation requirement.
Christopher Michael Haag et ux. T.C. Summary Opinion 2016-29 Sec. 67; 162; 170; 262; 274; 6662; 6664; 2-percent floor on miscellaneous itemized deductions; business expenses; charitable contributions; personal and living expenses; business expense substantiation; accuracy-related penalty; reasonable cause; commuting expenses; distance traveled; home office principal place of business/convenience of employer; clothing for work; meals away from home.
Barton Slavin et ux. T.C. Summary Opinion 2016-28 Sec. 163; 6662; 6664; mortgage interest; accuracy-related penalty; reasonable cause; no payment of interest; capitalized interest; mortgage modification agreement; cash basis taxpayers.
James E. Hess et ux. T.C. Summary Opinion 2016-27 Sec. 183; not-for-profit activities; distribution of health and beauty products; business plan; records for business planning.
George Tzivleris T.C. Summary Opinion 2016-26 Sec. 61; 108; 1231; 6662; 6664; gross income definition; cancellation of indebtedness; property used in a trade or business; accuracy-related penalty; reasonable cause; reconstruction of income; bank deposits method; line of credit deposits not income; insolvency exception.
Don Stephen McAuliffe T.C. Summary Opinion 2016-25 Sec. 6511; 6512; limitations on credit or refund; limitations on Tax Court petition; failure to timely file return; more than two years after taxes deemed paid.
Lynn Marie Domaschko T.C. Summary Opinion 2016-24 Sec. 6015; innocent spouse relief; contribution to taxes paid; ownership interest in overpayment.
Joseph D. Moon et ux. T.C. Summary Opinion 2016-23 Sec. 274; 280F; 469; 6662; 6664; substantiation of business expenses; luxury autos; passive activity losses; accuracy-related penalty; reasonable cause; rental real estate; material participation; real estate professional; documentation; recordkeeping.
Elazar M. Cole T.C. Summary Opinion 2016-22 Sec. 61; 894; gross income definition; income affected by treaty; U.S.-Israel treaty; sale of stock taxed in U.S.; U.S. citizen.
Lawrence M. Aleamoni et ux. T.C. Summary Opinion 2016-21 Sec. 162; business expenses; expenses treated as investment in S corporation; not deductible on Schedule C.
John Thompson, Jr. et ux. T.C. Summary Opinion 2016-20 Sec. 86; 6662; social security benefits; accuracy-related penalty; worker's compensation offset.
Wendell Wilson et ux. T.C. Summary Opinion 2016-19 Sec. 911; 6664; foreign earned income exclusion; reasonable cause; accuracy-related penalty; merchant marine; international waters; foreign territorial waters; reliance on tax preparer; prior IRS audit.
Richard A. Eichinger and Diana Suarez T.C. Summary Opinion 2016-18 Sec. 152; dependent definition; noncustodial parent; release; Form 8332; requirement for written declaration.
Leonard B. Gilbert T.C. Summary Opinion 2016-17 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; failure to report substantial amount of income.
Deborah Lee Bean and Neal Allan Berkowitz T.C. Summary Opinion 2016-16 Sec. 6213; 6330; 6402; Tax Court petition restrictions; hearing before levy; authorization to make credits or refunds; collection due process; credits on tax return used to offset trust fund recovery penalty; TFRP.
Victor M. Crown T.C. Summary Opinion 2016-15 Sec. 6330; hearing before levy; collection due process; no offer of collection alternative; challenge of underlying liabilities.
Lucas Matthew McCarville T.C. Summary Opinion 2016-14 Sec. 25A; American Opportunity Credit; expenses paid in prior year; cash method taxpayer.
Christopher H. Kaiser et ux. T.C. Summary Opinion 2016-13 Sec. 183; 6662; 6664; not-for-profit activities; accuracy-related penalty; reasonable cause; hobby losses; horse training activity.
Rodney J. Guarino et ux. T.C. Summary Opinion 2016-12 Sec. 469; 1402; 6662; 6664; passive activity losses; self-employment income; accuracy-related penalty; reasonable cause; real estate professional; mortgage brokerage activity; contemporaneous diary; profit from personal transaction.
Dona De Primavera Jackson et vir T.C. Summary Opinion 2016-11 Sec. 162; 263; 274; business expenses; capital expenditures; business expense substantiation; recordkeeping; documentation; lack of receipts; corroborating evidence.
John H. Fisher et ux. T.C. Summary Opinion 2016-10 Sec. 162; 6662; 6664; business expenses; accuracy-related penalty; reasonable cause; payments to children as wages determined based on testimony; no W-2 issued; business of writing; trade or business.
Robert W. Nuzum et ux. T.C. Summary Opinion 2016-9 Sec. 61; 71; 6662; 6664; gross income definition; alimony; accuracy-related penalty; reasonable cause; property settlement.
Sofien Beltifa T.C. Summary Opinion 2016-8 Sec. 67; 162; 170; 213; 6001; 6662; 6664; 2% floor on itemized expenses; business expenses; charitable contributions; medical and dental expenses; recordkeeping; accuracy-related penalty; reasonable cause; substantiation; documentation; business expenses of bartender; substantiation of charitable contributions.
Jose G. Henao T.C. Summary Opinion 2016-7 Sec. 25A; 162; 170; 274; 6662; 6664; American Opportunity Tax Credit; business expenses; charitable contributions; business expense substantiation; accuracy-related penalty; reasonable cause; substantiation for education expenses; unreimbursed employee business expenses; travel and entertainment; substantiation; documentation; recordkeeping; substantiation of business purpose; reliance on tax professional.
Robert Lee Morris T.C. Summary Opinion 2016-6 Sec. 2; 24; 32; 152; 7703; head of household; child tax credit; earned income credit; dependent definition; determination of marital status; qualifying dependents; partner not a dependent; partner's granddaughter not a dependent.
James W. Blackbourn, II, et ux. T.C. Summary Opinion 2016-5 Sec. 36; 6662; 6664; first-time homebuyer credit; accuracy-related penalty; reasonable cause; husband's principal residence; reasonable disagreement.
Xionghui He T.C. Summary Opinion 2016-4 Sec. 24; 152; child tax credit; dependent definited; noncustodial parent; Form 8332; written declaration required.
Howard Bernstein et ux. T.C. Summary Opinion 2016-3 Sec. 162; 170; 274; business expenses; charitable contributions; business expense substantiation; documentation; recordkeeping.
Albert Martin Elbe; Adah M. Elbe, Intervenor T.C. Summary Opinion 2016-2 Sec. 6015; innocent spouse relief; equitable relief; knowledge tax would not be paid; choice to file jointly.
Hazem Garada and Noha Elghosein T.C. Summary Opinion 2016-1 Sec. 61; 164; 212; 274; 446; 6015; 6662; gross income definition; interest expense; expenses for the production of income; business expense substantiation; methods of accounting; innocent spouse relief; accuracy-related penalty; unreported income; bank deposits method; recordkeeping; documentation; travel expenses; constructive dividends.

 


Copyright 2016 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject.--ISSN 1089-1536


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--Last Update 12/31/16