https://www.irs.gov/pub/irs-drop/rr-17-06.pdfMarch 3, 2017

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Small Business Taxes & Management

Tax Court Cases--2017


Small Business Taxes & ManagementTM--Copyright 2017, A/N Group, Inc.

 

Below is a list of the 2017 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--2016
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 March 18, 2017

Tax Court Cases

Richard Liljeberg, et al. 148 T.C. No. 6 Sec. 162; 213; business expenses; medical expenses; nonresident alien students; travel away from home; business connections with home countries; health insurance as a condition of employment; U.S. State Department Summer Work Travel Program; SWTP.

 

Memorandum Decisions

Estate of Charles Konkus, Deceased, Linda Collins, Administrator T.C. Memo. 2017-45 Sec. 6330; hearing before levy; collection due process; offer-in-compromise; tax shelter promoter penalties; doubt as to collectibility.
Dale Grimm T.C. Memo. 2017-44 Sec. 7502; timely mailing as timely filing; U.S. Postal Service postmark absent; late filed petition.
Michael Howard Dalton T.C. Memo. 2017-43 Sec. 1363; 6330; hearing before levy; collection due process; offer-in-compromise; doubt as to liability; collection alternatives; incorrect K-1.

 

Summary Opinions

Christopher B. Anderson et ux. T.C. Summary Opinion 2017-17 Sec. 217; moving expenses; 39-week requirement; time employment started.
Rita Lopez T.C. Summary Opinion 2017-16 Sec. 24; 32; additional child credit; earned income credit; proof of income; self-employed; client statements.
Doris Gaines et vir T.C. Summary Opinion 2017-15 Sec. 162; 170; 274; 6662; 6664; business expenses; charitable contributions; business expense substantiation; accuracy-related penalty; reasonable cause; vehicle expense; mileage logs; valuation of items donated; information pertaining to property donated.
John Edward Rapp et ux. T.C. Summary Opinion 2017-14 Sec. 469; passive activity losses; real estate professional; documentation of time spent in real estate; time in activity.
Samuel S. Beckey et ux. T.C. Summary Opinion 2017-13 Sec. 162; 274; 6662; business expenses; business expense substantiation; unreimbursed employee business expenses; documentation; recordkeeping; reimbursement policy; expenses incurred by another party; trade or business; ordinary and necessary; accuracy-related penalty.

 

Cumulative Cases - 2017

Tax Court Cases

Richard Liljeberg, et al. 148 T.C. No. 6 Sec. 162; 213; business expenses; medical expenses; nonresident alien students; travel away from home; business connections with home countries; health insurance as a condition of employment; U.S. State Department Summer Work Travel Program; SWTP.
Joe Alfred Izen, Jr. 148 T.C. No. 5 Sec. 170; charitable contributions; contemporaneous written acknowledgment; defective acknowledgment; contribution of interest in vintage airplane.
Elizabeth M. Jacobson 148 T.C. No. 4 Sec. 7459; reports and decisions; Tax Court Rule 13; whistleblower awards; Tax Court review; petitioner move for voluntary dismissal.
Douglas M. Thompson et ux. 148 T.C. No. 3 Sec. 6662A; 7441; accuracy-related penalty and reportable transactions; status of Tax Court; Excessive Fines Clause of Eight Amendment; removal of Tax Court judges for cause; tax penalty as a form of punishment.
Stanley Battat et ux. 148 T.C. No. 2 Sec. 7441; status of Tax Court; motion to disqualify all Tax Court Judges; declare Sec. 7443(f) unconstitutional.
Timothy M. Dees 148 T.C. No. 1 Sec. 6214; determinations by Tax Court; jurisdiction; validity of notice of deficiency; NOD; taxpayer not misled.

 

Memorandum Decisions

Estate of Charles Konkus, Deceased, Linda Collins, Administrator T.C. Memo. 2017-45 Sec. 6330; hearing before levy; collection due process; offer-in-compromise; tax shelter promoter penalties; doubt as to collectibility.
Dale Grimm T.C. Memo. 2017-44 Sec. 7502; timely mailing as timely filing; U.S. Postal Service postmark absent; late filed petition.
Michael Howard Dalton T.C. Memo. 2017-43 Sec. 1363; 6330; hearing before levy; collection due process; offer-in-compromise; doubt as to liability; collection alternatives; incorrect K-1.
Luczaj and Associates et al. T.C. Memo. 2017-42 Sec. 162; 170; 262; 274; 280A; 316; 6662; 6664; business expenses; charitable contributions; personal and living expenses; business expense substantiation; disallowance of expenses in relation to dwelling unit; dividend defined; accuracy-related penalty; reasonable cause; car and truck expenses; business use of vehicles; meals and entertainment expenses; expenses attributable to personal residence; substantiation of contributions; constructive dividend of corporation; personal expenses.
Steven L. Ertelt T.C. Memo. 2017-41 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; notice of mailing of deficiency notice by IRS; issue of underlying liabilities; last known address.
Estate of Eva Franzen Kollsman, Deceased, Jeffrey Hyland, Executor T.C. Memo. 2017-40 Sec. 2013; definition of gross estate; valuation of paintings; discount for condition; estate's expert opinion rejected; comparable works market value; valuation determined by court.
Joanne C. Ruddy et vir T.C. Memo. 2017-39 Sec. 6330; hearing before levy; collection due process; proper mailing of deficiency notices; period of limitations; last known address; proof of mailing by IRS.
Gary J. Kauffman T.C. Memo. 2017-38 Sec. 162; 163; 6662; 6664; business expenses; interest expenses; accuracy-related penalty; reasonable cause; payments to related entity; ordinary and necessary business expenses; home mortgage interest; home equity cap; proof of improvement expenses; substantiation; documentation.
Karson C. Kaebel T.C. Memo. 2017-37 Sec. 6630; hearing before levy; collection due process; mailing of notice; last known address; challenge of underlying tax liability.
Jason M. Scheurer T.C. Memo. 2017-36 Sec. 166; 704; bad debts; partner's distributive share; proof of advance of funds; substantiation of partnership expenses; share of losses; payment of another's expenses.
Charles D. Shaffran, Sr. T.C. Memo. 2017-35 Sec. 6672; failure to collect and pay over taxes; trust fund recovery penalty; TFRP; responsible person; control over business affairs.
Mohammad M. Zarrinnegar et ux. T.C. Memo. 2017-34 Sec. 162; 469; 6662; 6664; business expenses; passive activity losses; accuracy-related penalty; reasonable cause; expense substantiation; Cohan rule; meals and entertainment; items purchased at grocery stores; relationship to business; vague testimony; real estate professional; credible testimony and log.
Elias Olson et ux. T.C. Memo. 2017-33 Sec. 61; 104; 6320; 6330; gross income definition; damage awards and sick pay; hearing before filing lien notice; hearing before levy; collection due process; worker's compensation-type payments; pension related to disability; pension taxable.
David W.Schieber et ux. T.C. Memo. 2017-32 Sec. 108; cancellation of debt income; exclusion of forgiven debt to extent of insolvency; inability to convert interest in defined benefit pension into a lump-sum cash amount; pension not an asset.
Allyn B. Smaaland et ux. T.C. Memo. 2017-31 Sec. 6015; innocent spouse relief; knowledge and/or involvement in transactions resulting in deficiency; failure to report income; knowledge of omitted income.
Peter William Moss T.C. Memo. 2017-30 Sec. 151; 6012; 6013; 6042; personal exemptions; required return; joint returns; authority to make refunds; separate return of spouse; not entitled to file married joint; capacity of spouse to file own return; taxpayer acting as agent; credit of overpayment against tax liability.
Grisel A. Smyth T.C. Memo. 2017-29 Sec. 2; 24; 32; 152; head of household; child tax credit; earned income credit; dependent definition; grandchildren not qualifying children; children also claimed by parents; tie-breaker rule; release of claim of dependency; amended return not properly filed with IRS.
Ronald E. Byers T.C. Memo. 2017-28 Sec.6320; 6330; 6673; hearing before filing lien notice; hearing before levy; penalty for delay; collection due process; collection alternative not requested; financial information not provided.
John C. Noyes T.C. Memo. 2017-27 Sec. 6330; hearing before levy; collection due process; mailing of notices of deficiency; reasonable care by settlement officer.

Basic Engineering, Inc. T.C. Memo. 2017-26 Sec. 460; 6662; 6664; long-term contracts; accuracy-related penalty; reasonable cause; completed contract method; reasonably expected to complete contract in two years; reliance on tax professional.
Estate of Lillian Beckenfeld, Deceased, Ronald Beckenfeld, Trustee T.C. Memo. 2017-25 Sec. 6324; liens for estate and gift taxes; intent to levy; deceased donor's gift tax liability; late-filing, late-payment penalties.
William Namen T.C. Memo. 2017-24 Sec. 705; 6651; basis of partnership interest; failure to file or pay; reasonable cause; ability to take losses; liability on loans to partnership; documentation; substantiation; share of partnership losses; adjustments to basis.
Vincent E. Craven, Jr. et ux. T.C. Memo. 2017-23 Sec. 6330; hearing before levy; collection due process; collection alternative denied; failure to provide requested information.
Kevin Cheves et ux. T.C. Memo. 2017-22 Sec. 61; 72; 408; 6662; 6664; gross income definition; early distributions; individual retirement accounts; accuracy-related penalty; reasonable cause; no economic hardship exception to early distribution penalty.
Edward S. Flume T.C. Memo. 2017-21 Sec. 6038; 6679; information reporting for foreign corporations and partnerships; failure to file returns for foreign corporations and partnerships; penalties; Form 5471; Mexican corporations; controlled foreign corporation; CFC.
Scott Kimrey Goldsmith T.C. Memo. 2017-20 Sec. 61; 108; 162; 1366; 6651; gross income definition; cancellation of debt income; business expenses; pass-through items to shareholders; failure to file or pay; basis in S corporation; costs associated with loan personal.
Christian Chukwuemeka Ibeagwa T.C. Memo. 2017-19 Sec. 34; fuel tax credit; fuel purchased for nontaxable purpose; proof of purchase of fuel.
Philip S. Brown et ux. T.C. Memo. 2017-18 Sec. 162; trade or business expenses; ordinary and necessary; S corporation; administrative dissolution; corporation not in existence; deduction disallowed.
Stewart Thomas Oatman et ux. T.C. Memo. 2017-17 Sec. 162; 170; 274; 469; 6662; 6664; business expenses; charitable contributions; business expense substantiation; passive activity losses; accuracy-related penalty; reasonable cause; unreimbursed employee business expenses; recordkeeping; documentation; reimbursement policy; taxpayers' testimony insufficient for charitable deduction.
Stephen P. Hardy et ux. T.C. Memo. 2017-16 Sec. 469; passive activity losses; interest in property rented to active business treated as passive; business purpose for renting space in owned property; minority interest; participation in property's operation; grouping of taxpayer's activities.
Neil S. Schuster T.C. Memo. 2017-15 Sec. 6502; 7405; collection after assessment; recovery of erroneous refunds; erroneous credit to taxpayer's account; credit transfer; application of overpayment.
Silvia Santana, et al. T.C. Memo. 2017-14 Sec. 6330; 6404; 6651; hearing before levy; abatement of interest; failure to file or pay; collection due process; failure to offer collection alternatives; failure to provide financial information; consequence of IRS ministerial error.
Tyree Phillips T.C. Memo. 2017-13 Sec. 6330; hearing before levy; collection due process; collection alternatives; delinquent returns.
Pazzo Pazzo, Inc. T.C. Memo. 2017-12 Sec. 6330; 7122; hearing before levy; offer-in-compromise; collection due process; failure to meet IRS requests; IRS motion to permit levy denied.
Estate of Ruben A. Myers, Deceased, Ken Norton, Executor T.C. Memo. 2017-11 Sec. 6324; special liens for estate and gift taxes; right of collection due process hearing; delinquent installment payments; 10-year period to collect tax.
Yvonne A. Williams T.C. Memo. 2017-10 Sec. 6511; limitations on credit or refund; equitable relief; waiver of limitations period.
New Millennium Trading, LLC, et al. T.C. Memo. 2017-9 Sec. 6231; 6662; 6664; notice of proceedings and adjustment; accuracy-related penalty; reasonable cause; Son-of-Boss transaction; tax shelter variant; final partnership administrative adjustment; FPAA; spread transactions.
Lois Brodmerkle et vir T.C. Memo. 2017-8 Sec. 162; 172; 6651; 6662; 6664; business expenses; net operating losses; failure to file or pay; accuracy-related penalty; reasonable cause; recordkeeping; documentation; substantiation; documentation for claimed income.
Isidro Garza, Jr. et ux. T.C. Memo. 2017-7 Sec. 6663; fraud; guilty plea for tax evasion; estoppel; civil fraud penalty.
Ann McKinney T.C. Memo. 2017-6 Sec. 61; 104; gross income definition; damage awards and sick pay; employment discrimination.
Brian E. Harriss T.C. Memo. 2017-5 Sec. 61; 72; 408; 6651; 6662; 6664; 6673; gross income definition; early distribution; individual retirement account; failure to file or pay; accuracy-related penalty; reasonable cause; damages for delay; IRA; exception to penalty; distribution from IRA taxable; wages taxable; frivolous arguments.
Michael Lombardi T.C. Memo. 2017-4 Sec. 162; 274; 6662; 6664; business expenses; business expense substantiation; accuracy-related penalty; reasonable cause; recordkeeping; meals and entertainment; required documentation.
Candace Elaine T.C. Memo. 2017-3 Sec. 72; 6662; 6664; early distribution; accuracy-related penalty; reasonable cause; financial hardship; exceptions; documentation; prior IRS audit no change.
Barry John Sullivan T.C. Memo. 2017-2 Sec. 61; 6213; 6651; 6662; 6664; gross income definition; jurisdiction; failure to file or pay; accuracy-related penalty; reasonable cause; wages and annuity income; credit under Sec. 31; unsigned return; reasonable cause; Forms 4852 attached.
John M. Sensenig et ux. T.C. Memo. 2017-1 Sec. 166; 385; 6662; bad debts; debt vs. equity; accuracy-related penalty; S corporation; bad-debt deduction; advances to other entities; evidence of debt; treatment by debtor; documentation.

 

Summary Opinions

Christopher B. Anderson et ux. T.C. Summary Opinion 2017-17 Sec. 217; moving expenses; 39-week requirement; time employment started.
Rita Lopez T.C. Summary Opinion 2017-16 Sec. 24; 32; additional child credit; earned income credit; proof of income; self-employed; client statements.
Doris Gaines et vir T.C. Summary Opinion 2017-15 Sec. 162; 170; 274; 6662; 6664; business expenses; charitable contributions; business expense substantiation; accuracy-related penalty; reasonable cause; vehicle expense; mileage logs; valuation of items donated; information pertaining to property donated.
John Edward Rapp et ux. T.C. Summary Opinion 2017-14 Sec. 469; passive activity losses; real estate professional; documentation of time spent in real estate; time in activity.
Samuel S. Beckey et ux. T.C. Summary Opinion 2017-13 Sec. 162; 274; 6662; business expenses; business expense substantiation; unreimbursed employee business expenses; documentation; recordkeeping; reimbursement policy; expenses incurred by another party; trade or business; ordinary and necessary; accuracy-related penalty.
William Henry Paynter et ux. T.C. Summary Opinion 2017-12 Sec. 6330; 6651; 6654; hearing before levy; failure to file or pay; failure to pay estimated tax; collection due process; pattern of filing returns without paying; substantiation tax not paid.
James David Jackson T.C. Summary Opinion 2017-11 Sec. 163; interest expense; qualified residence interest; substantiation; documentation; payment of mortgage interest; equitable interest in property; obligation to pay mortgage.
Larry Lee Lock, II et al. T.C. Summary Opinion 2017-10 Sec. 162; 262; 911; 6015; business expenses; personal expenses; foreign earned income exclusion; innocent spouse relief; business expenses disallowed as personal; substantiation; documentation; employer reimbursement policy business expenses as condition of employment; tax home in foreign country requirement; abode in U.S.; ex-wife entitled to innocent spouse relief; knowledge of facts; sophistication in tax matters.
William H. Tinsley et ux. T.C. Summary Opinion 2017-9 Sec. 1366; pass-through of items to shareholders; basis in debt; guarantee of loan; primary obligor; liquidation of corporation.
Tommy J. Walker, Jr. T.C. Summary Opinion 2017-8 Sec. 2; 24; 32; 152; filing status; additional child tax credit; earned income credit; dependent definition; head of household; qualifying child; qualifying relative; domicile; one-half of support.
LaVerne Renee Hudson T.C. Summary Opinion 2017-7 Sec. 6015; innocent spouse relief; equitable relief; financial hardship; no benefit from unpaid liability.
Alvin Jones et ux. T.C. Summary Opinion 2017-6 Sec. 469; passive loss limitations; real estate professional; failure to show time spent in non-real estate activity; contemporaneous daily time reports; more time in real estate activity than other activity.
Emad Alabsi et ux. T.C. Summary Opinion 2017-5 Sec. 61; 62; 162; 262; 274; 6662; 6664; gross income definition; adjusted gross income; business expenses; personal expenses; business expense substantiation; accuracy-related penalty; reasonable cause; professional poker player; deduction for expenses directly related to gambling tournaments; gambling income underreported; failure to maintain records.
James Ramone Taylor T.C. Summary Opinion 2017-4 Sec. 61; gross income definition; military retirement pay; equitable estoppel; amount excluded on prior return accepted by IRS; prior IRS error.
Mark A. Quintal T.C. Summary Opinion 2017-3 Sec. 71; 215; alimony; alimony; description of payments in settlement agreement.
Ellen M. Sas and Roger A. Jones T.C. Summary Opinion 2017-2 Sec. 62; 162; gross income definition; business expenses; legal fees related to lawsuit; breach of fiduciary duty.
Mahmoud A. Makhlouf et ux. T.C. Summary Opinion 2017-1 Sec. 469; passive loss limitation; real estate professionals; support for time spent on real estate activities.

 


Copyright 2017 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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