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 June 17, 2017

Steven M. Petersen et ux.; John E. Johnstun et ux. 148 T.C. No. 22 Sec. 267; 6662; transactions between related parties; accuracy-related penalty; S corporation and employee stock ownership plan; ESOP; related persons; matching rule; requirement of accural basis of accounting.

 

Memorandum Decisions

Ten Twenty Six Investors, Douglas Oliver, Tax Matters Partner T.C. Memo. 2017-115 Sec. 170; charitable contributions; conservation easement; use restriction and conservation purpose not protected in perpetuity; facade easement; execution of deed.
Thomas E. Watts et ux. et al. T.C. Memo. 2017-114 Sec. 165; 741; 6662; 6664; losses; character of gain or loss on sale or exchange; accuracy-related penalty; reasonable cause; ordinary abandonment losses; abandonment loss on disposal of partnership interests; capital loss on disposal of partnership interest; creation of amortizable intangible; nature of agreement on disposal of interests.
Allen T. Stettner et ux. T.C. Memo. 2017-113 Sec. 183; 6662; not-for-profit activities; accuracy-related penalty; hobby losses; car racing activity; factors in favor of IRS.
Whistleblower 19860-15W T.C. Memo. 2017-112 Sec. 7623; expenses of deduction of underpayments and fraud; information provided before effective date of law.
Michael L. Devine, Jr. et ux. T.C. Memo. 2017-111 Sec. 104; 6662; 6664; damage awards and sick pay; accuracy-related penalty; reasonable cause; award for sexual harassment and pregnancy discrimination; no physical injury or sickness; Form 1099-MISC received; no advice from tax professional.
Larry Geneser T.C. Memo. 2017-110 Sec. 162; 163; 1402; 6651; 6654; business expenses; interest expense; self-employment tax; failure to file or pay; failure to pay estimated tax; independent contractor; termination payments; substitute for return; SFR; allocation of loan proceeds between business and personal expenses.

 

Summary Opinions

Alfred H. Shum T.C. Summary Opinion 2017-40 Sec. 6330; hearing before levy; collection due process; challenge of underlying tax liability; failure to offer collection alternative.
Reza Zia-Ahmadi et ux. T.C. Summary Opinion 2017-39 Sec. 11; 162; 163; 167; 262; 274; 316; 448; 731; 1402; 6662; 6664; tax rate on corporations; business expenses; interest expense; depreciation; personal expenses; business expense substantiation; dividend defined; limitation on use of cash method; gain or loss on partnership distributions; net earnings from self employment; accuracy-related penalty; reasonable cause; payment of personal expenses by partnership; constructive dividends; personal service corporation; 35-percent tax rate; loan to shareholders; respecting separate entities; lease payments to related entity; ownership of depreciated property.
Alan David Snow T.C. Summary Opinion 2017-38 Sec. 6330; hearing before levy; collection due process; installment agreement rejected; not in compliance with tax obligations.

 

Cumulative Cases - 2017

Tax Court Cases

Steven M. Petersen et ux.; John E. Johnstun et ux. 148 T.C. No. 22 Sec. 267; 6662; transactions between related parties; accuracy-related penalty; S corporation and employee stock ownership plan; ESOP; related persons; matching rule; requirement of accural basis of accounting.
Ian D. Smith 148 T.C. No. 21 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower awards; amount in dispute; collected proceeds; $2 million theshold.
David T. Myers 148 T.C. No. 20 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower awards; untimely petition.
Whistleblower 4496-15W 148 T.C. No. 19 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower awards; petition timely; waiver of appeal rights.
Estate of Nancy H. Powell, Deceased, Jeffrey J. Powell, Executor 148 T.C. No. 18 Sec. 2033; 2035; 2036; 2038; 2043; decedent's interest in property; gifts made within three years of death; transfers with retain life estate; revocable transfers; transfers for insufficient consideration; transfers to family limited partnership; invalid transfer under state law; retention of right through son who was attorney-in-fact; limitations illusory; transfer void or revocable; authority under state law.
First Rock Baptist Church Child Development Center and First Rock Baptist Church (148 T.C. No. 17) 148 T.C. No. 17 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; jurisdiction; receipt of notice of determination; challenge of underlying liabilities; court can consider issues raised in collection due process hearing. Bernard P. Malone et ux. 148 T.C. No. 16 Sec. 6230; 6662; additional administrative provisions; accuracy-related penalty; partnerships; adjustmentsd to partnership items; penalty for failure to report partnership items.
Kevin Dewitt Skaggs 148 T.C. No. 15 Sec. 32; earned income credit; penal institution; time spent in mental hospital; eligibility for credit.
John C. Trimmer et ux. 148 T.C. No. 14 Sec. 402; taxability of beneficiary of employee's trusts; hardship waiver; 60-day rollover.
Estate of Andrew J. McKelvey, Deceased, Bradford G. Peters, Executor 148 T.C. No. 13 Sec. 1001; 1259; amount of and recognition of gain and loss; constructive sales treatment for appreciated financial positions; open transaction doctrine; variable prepaid forward contracts.
Whistleblower 16158-14W 148 T.C. No. 12 Sec. 7623; expenses of detection of underpayments and fraud; right to reward; no collected proceeds; no action taken by the IRS.
Mescalero Apache Tribe148 T.C. No. 11 Sec. 3402; 6103; income tax collected at source; disclosure of return information; failure to withhold; employee vs. independent contractor.
Good Fortune Shipping SA 148 T.C. No. 10 Sec. 883; exclusions from gross income; bearer-share regulations; foreign corporation; exemption from U.S. taxation; ownership by qualified individuals.
Lindsay Manor Nursing Home, Inc. 148 T.C. No. 9 Sec. 6343; authority to release levy; regulation invalid; economic hardship of taxpayer.
Amazon.Com, Inc. & Subsidiaries 148 T.C. No. 8 Sec. 482; allocation of income and deductions among taxpayers; transfer pricing; transfer and use of preexisting intangibles; Luxembourg subsidiary; discounted cash flow valuation.
Whistleblower 12568-16w 148 T.C. No. 7 Tax Court Rule 345; request for anonymity; showing of harm; balance between societal interest and anonymity.
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

Ten Twenty Six Investors, Douglas Oliver, Tax Matters Partner T.C. Memo. 2017-115 Sec. 170; charitable contributions; conservation easement; use restriction and conservation purpose not protected in perpetuity; facade easement; execution of deed.
Thomas E. Watts et ux. et al. T.C. Memo. 2017-114 Sec. 165; 741; 6662; 6664; losses; character of gain or loss on sale or exchange; accuracy-related penalty; reasonable cause; ordinary abandonment losses; abandonment loss on disposal of partnership interests; capital loss on disposal of partnership interest; creation of amortizable intangible; nature of agreement on disposal of interests.
Allen T. Stettner et ux. T.C. Memo. 2017-113 Sec. 183; 6662; not-for-profit activities; accuracy-related penalty; hobby losses; car racing activity; factors in favor of IRS.
Whistleblower 19860-15W T.C. Memo. 2017-112 Sec. 7623; expenses of deduction of underpayments and fraud; information provided before effective date of law.
Michael L. Devine, Jr. et ux. T.C. Memo. 2017-111 Sec. 104; 6662; 6664; damage awards and sick pay; accuracy-related penalty; reasonable cause; award for sexual harassment and pregnancy discrimination; no physical injury or sickness; Form 1099-MISC received; no advice from tax professional.
Larry Geneser T.C. Memo. 2017-110 Sec. 162; 163; 1402; 6651; 6654; business expenses; interest expense; self-employment tax; failure to file or pay; failure to pay estimated tax; independent contractor; termination payments; substitute for return; SFR; allocation of loan proceeds between business and personal expenses.
Nelly Mencias T.C. Memo. 2017-109 Sec. 6015; innocent spouse relief; not shown and did not sign return; receipt of refund; equitable relief.
James Awad T.C. Memo. 2017-108 Sec. 7623; expenses of deduction of underpayments and fraud; whistleblower; disclosure of foreign bank account; volutary disclosure; whistleblower's information not used.
Elizabeth A. Gardner T.C. Memo. 2017-107 Sec. 6330; 6673; hearing before levy; penalty for delay; collection due process; appeal pending for different period; failure to supply financial information; maintaining frivolous position.
Catherine Ann Riggins T.C. Memo. 2017-106 Sec. 6001; 6215; 6651; required records; assessment of deficiency found by Tax Court; failure to file or pay; return processed after IRS issued deficiency notice; evidence of deductions, credits, and filing status.
Cynthia Gonzalez T.C. Memo. 2017-105 Sec. 7623; expenses of deduction of underpayments and fraud; whistleblower; jurisdiction.
Robert Lippolis T.C. Memo. 2017-104 Sec. 7623; expenses of deduction of underpayments and fraud; whistleblower; less than $2 million in dispute.
Joseph Wages et ux. T.C. Memo. 2017-103 Sec. 111; 162; 274; tax benefit rule; business expenses; business expense substantiation; documentation; recordkeeping; Cohan rule.
Seminole Nursing Home, Inc. T.C. Memo. 2017-102 Sec. 6330; hearing before levy; collection due process; unpaid employment tax obligations; installment agreement rejected; economic hardship relief provision; liquidating assets; borrowing against assets.
Paul S. Mudrich T.C. Memo. 2017-101 Sec. 71; 215; 6651; 6662; alimony; alimony; failure to file or pay; accuracy-related penalty; payment not consistent with divorce or separation agreement.
Carolyn F. Whitsett T.C. Memo. 2017-100 Sec. 6662; accuracy-related penalty; reliance on return preparer; preparer failed to file return.
Katrina E. Taylor et vir. T.C. Memo. 2017-99 Sec. 274; 6662; business expense substantiation; accuracy-related penalty; vehicle expenses; records not contemporaneous.
Western Hills Residental Care, Inc. T.C. Memo. 2017-98 Sec. 6330; 6343; hearing before levy; authority to release levy and return property; collection process; unpaid employment tax obligations; installment agreement rejected; economic hardship relief provision; liquidating assets; borrowing against assets.
Hennessey Manor Nursing Home, Inc. T.C. Memo. 2017-97 Sec. 6330; hearing before levy; collection process; unpaid employment tax obligations; installment agreement rejected; economic hardship relief provision; liquidating assets; borrowing against assets.
Silvercrest Manor Nursing Home, Inc. T.C. Memo. 2017-96 Sec. 6330; hearing before levy; collection process; unpaid employment tax obligations; installment agreement rejected; economic hardship relief provision; liquidating assets; borrowing against assets.
Sulphur Manor, Inc. T.C. Memo. 2017-95 Sec. 6330; hearing before levy; collection process; unpaid employment tax obligations; installment agreement rejected; economic hardship relief provision; liquidating assets; borrowing against assets.
Crescent Manor, Inc. T.C. Memo. 2017-94 Sec. 6330; hearing before levy; collection process; unpaid employment tax obligations; installment agreement rejected; economic hardship relief provision; liquidating assets; borrowing against assets.
Paul Morris McNally ut ux. T.C. Memo. 2017-93 Sec. 162; 170; 274; 469; 6662; business expenses; charitable contributions; business expense substantiation; passive activity losses; accuracy-related penalty; vehicle expenses; business purpose; substantiation; real estate professional.
Henry Langer et ux. T.C. Memo. 2017-92 Sec. 6663; fraud; fraudulent intent; concealment of income; burden of proof.
Joseph Chiarelli T.C. Memo. 2017-91 Sec. 6330; hearing before levy; collection due process; property transferred to child; levy sustained.
Azael D. Perales T.C. Memo. 2017-90 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower awards; action by IRS; identification of federal tax issue.
Chester George Durda T.C. Memo. 2017-89 Sec. 6330; hearing before levy; collection due process; current not collectible (CNC) status; withdrawal of levy.
Christina M. Fitzpatrick T.C. Memo. 2017-88 Sec. 7430; attorney's fees; prevailing party; recovery of costs; statutory rate; no special factors for additional costs.
Jeffrey A. Spinner et ux. T.C. Memo. 2017-87 Sec. 6330; hearing before levy; collection due process; failure to appear at hearing; notice of hearing.
George E. Timmins T.C. Memo. 2017-86 Sec. 85; 6673; unemployment compensation; penalty for delay; Form 1099-G; frivolous arguments.
Charles O. Yambo T.C. Memo. 2017-85 Sec. 6320; 6330; hearing before filing lien notice; hearing before levy; collection due process; failure to provide financial information.
Neil L. Whitesell et ux. T.C. Memo. 2017-84 Sec. 6501; 7122; limitations on collection and assessment; offer-in-compromise; how period of assessment expiration is determined; income from S corporation; whether or not offer-in-compromise in effect.
Leroy Muncy T.C. Memo. 2017-83 Sec. 6201; 6213; 6651; 6654; 6673; assessment authority; restrictions applicable to deficiencies, petitions to Tax Court; failure to file or pay; failure to pay estimated tax; damages for delay; tax-avoidance scheme; restitution and effect on deficiencies; criminal vs. civil actions; fraudulent failure to file; frivolous litigation.
Edward Daniel T.C. Memo. 2017-82 Sec. 6330; hearing before levy; collection due process; failure to file tax returns; not in compliance with estimated taxes; failure to submit requested financial information.
Xing F. Wang and Kathleen P. Lee T.C. Memo. 2017-81 Sec. 48D; 50; 167; 263; 280A; 442; 1212; 1402; 6662; 6664; qualifying therapeutic discovery project credit; recapture of credits; depreciation; capital expenditures; business use of home; change of annual accounting period; capital loss carryovers; self-employment tax; accuracy-related penalty; reasonable cause; grant reduces expenditures qualifying for credit; tax basis for depreciation; substantiation of long-term capital loss.
Mae Izzedin Asad, Petitioner, and Sam Akel, Intervenor T.C. Memo. 2017-80 Sec. 6015; innocent spouse relief; former spouses entitled to joint relief from each other; losses on rental properties; issue in divorce agreement; IRS consent needed.
Barry Leonard Bulakites T.C. Memo. 2017-79 Sec. 71; 162; 163; 172; 215; 6662; 6664; alimony; business expenses; interest expense; net operating loss; alimony; accuracy-related penalty; reasonable cause; oral modification of separation instrument; detailed statement of net operating loss; proof of interest paid; loan documents.
Kenneth D. Humphrey T.C. Memo. 2017-78 162; 6662; 6664; business expenses; accuracy-related penalty; reasonable cause; unreimbursed employee business expenses; reimbursement by employer; expense relationship to employment.
Estate of Hung-Liang Lynn Lin, Deceased, Jeffrey S. Lin, Administrator T.C. Memo. 2017-77 Sec. 408; 6662; Individual Retirement Account; accuracy-related penalty; distribution from IRA; gross income; funds rolled over.
Christopher S. Harrell Sr. et ux T.C. Memo. 2017-76 Sec. 72; 101; 262; early distribution; certain death benefits; personal expenses; investment in annuity contract; proof of after-tax contributions; funeral and estate administration expenses.
Panagiota Pam Sotiropoulos T.C. Memo. 2017-75 Sec. 905; applicable rules foreign tax credit; U.S. citizen working in U.K.; overpayments and refunds of withheld U.K. taxes; reduction of foreign tax credit; ultimate repayment of refunded U.K. taxes.
Christopher R. Cooke T.C. Memo. 2017-74 Sec. 280A; 6662; 6664; disallowance of losses in connection with dwelling unit; accuracy-related penalty; reasonable cause; use of property more than 14 days in tax year; bed and breakfast; 50% interest in LLC; days spent working on property; diary or log; specific activities; time spent.
Eddie Borna et ux. T.C. Memo. 2017-73 Sec. 61; 446; 483; 6662; gross income definition; methods of accounting; interest on deferred payments; accuracy-related penalty; reconstruction of income; bank deposits method; capital gains and losses; deduction for basis and sale expenses; unstated interest on notes.
Danielle Jan Bates et vir T.C. Memo. 2017-72 Sec. 104; 6662; damage awards and sick pay; accuracy-related penalty; emotional distress; discrimination and wrongful discharge allegations.
Damon Aaron Redfield T.C. Memo. 2017-71 Sec. 911; foreign earned income exclusion; failure to make timely election; late filed return; substitute for return; Form 2555.
Joel E. Wainwright, Keerti Varmaa, Next Friend T.C. Memo. 2017-70 Sec. 48; 163; 165; 167; 170; 6501; 6662; 6664; residential energy credit; interest; losses; depreciation; charitable contributions; limitations on assessment and collection; accuracy-related penalty; reasonable cause; substantiation of energy credit; type of windows; where installed; equitable interest in property for mortgage; benefits and burdens of ownership; substantiation of casualty loss; reimbursement by insurance; business use of property for depreciation; notice of deficiency issued within three years of filing of return.
Larry E. Austin et ux.; Estate of Arthur E.Kechijian, Deceased et al. T.C. Memo. 2017-69 Sec. 83; 6662; property transferred for performance of services; accuracy-related penalty; restricted shares; substantial risk of forfeiture; ESOP; control of stock; S corporation.
Patricia S. Windham T.C. Memo. 2017-68 Sec. 67; 162; 212; 274; 469; 6662; 6664; 2-percent floor; business expenses; expenses for the production of income; business expense substantiation; passive activity losses; accuracy-related penalty; reasonable cause; unreimbursed business expense; car and truck expenses; cell phone; Cohan rule; business purpose for meal; real estate professional.
Sean M. Murray T.C. Memo. 2017-67 Sec. 72; 6651; 6654; 6673; early distribution; failure to file or pay; failure to pay estimated tax; penalty for delay; frivolous arguments; prolonging Tax Court proceedings.
Brenda Taft T.C. Memo. 2017-66 Sec. 6015; innocent spouse relief; financial independence; taxpayer's signature; no significant benefit.
Zane W. Penley et ux. T.C. Memo. 2017-65 Sec. 469; 6662; passive activity losses; accuracy-related penalty; real estate professional; time spent on real estate; log not credible.
Shawn Darren Allen T.C. Memo. 2017-64 Sec. 6330; hearing before levy; collection due process; partial-pay installment agreement; upfront payment; estimated tax obligations.
Lisa F. Wilson T.C. Memo. 2017-63 Sec. 6015; innocent spouse relief; knowledge of understatement; equitable relief; economic hardship.
Vincent J. Castigliola et ux. T.C. Memo. 2017-62 Sec. 1402; 6662; 6664; net earnings from self-employment; accuracy-related penalty; reasonable cause; members of professional LLC; member-managed; income from the LLC subject to self-employment tax; reliance on professional.
Rupert E. Phillips et ux. T.C. Memo. 2017-61 Sec. 1366; 6662; 6664; pass-through items to shareholders; accuracy-related penalty; reasonable cause; debt basis in S corporation; guaranteed loans; economic outlay; deficiency judgments for guaranteed loans.
Denise Lloyd T.C. Memo. 2017-60 Sec. 6330; 7122; hearing before levy; offer-in-compromise; collection due process; doubt as to collectibility; reasonable collection potential analyzed; financial information.
Veretta Rice Yancey T.C. Memo. 2017-59 Sec. 6015; innocent spouse relief; knowledge of gambling activity generating income; preparation of returns.
Ted Lawrence Williams T.C. Memo. 2017-58 Sec. 6330; 6673; hearing before levy; penalty for delay; collection due process; frivolous arguments; last known address.
Bradley A. Ballard et ux. T.C. Memo. 2017-57 Sec. 61; 162; 446; 6651; 6663; gross income definition; business expenses; methods of accounting; failure to file or pay; civil fraud; unreported income; income reconstruction; bank deposits method; badges of fraud; substantiation; documentation.
Ivan Rives T.C. Memo. 2017-56 Sec. 6330; hearing before levy; collection due process; appeals officer verification of mailing of notice of deficiency; evidence established proper mailing.
Caiping Zang and Tao Liu T.C. Memo. 2017-55 Sec. 61; 6662; 6664; gross income definition; accuracy-related penalty; reasonable cause; underreported wage income; rental income; gambling winnings; income re reconstruction; specific items method; promissory notes; intention to repay loan; enforce repayment.
Daniel E. Larkin et ux. T.C. Memo. 2017-54 Sec. 162; 163; 164; 165; 170; 212; 262; 274; 904; 911; 1402; 6651; 6662; 6664; business expenses; interest, taxes, losses, charitable contributions; expenses for the production of income; personal expenses; business expense substantiation; limitations on credit; foreign earned income exclusion; net earnings from self-employment; failure to file or pay; accuracy-related penalty; reasonable cause; home office; computer; rental expenses; contributions to pension plan; K-1 earned income; recordkeeping; documentation; substantiation of basis in property; casualty loss; foreign taxes creditable against U.S. Taxes.
Albert Okorogu et ux. T.C. Memo. 2017-53 Sec. 61; 85; 6015; 6662; 6664; gross income definition; unemployment compensation; innocent spouse relief; accuracy-related penalty; reasonable cause; cancellation of debt; Form 1099-C; emotional and physical abuse of spouse; restriction to financial information by spouse; equitable relief.
Leif D. Rozin T.C. Memo. 2017-52 Sec. 6201; 6211; 6213; assessment authority; deficiency definition; restricts applicable to deficiencies; restitution payments; deficiency not yet assessed; reduction of liability.
Home Team Transition Management T.C. Memo. 2017-51 Sec. 162; business expenses; management services provided by related entity; ordinary, necessary and reasonable payments; reasonable compensation; evidence of management services.
Linday Manor Nursing Home, Inc. T.C. Memo. 2017-50 Sec. 6330; hearing before levy; collection due process; proposed installment agreement rejected; sufficient assets to fully pay liability; not in compliance with employment tax obligations; economic hardship; corporations.
Saeid Zolghadr and Mandana Zolghadr T.C. Memo. 2017-49 Sec. 61; 162; 163; 274; 446; 6651; 6662; 6664; gross income definition; business expenses; interest expense; business expense substantiation; methods of accounting; failure to file or pay; accuracy-related penalty; reasonable; underreported business income; reconstruction of income; bank deposits method; documentation; recordkeeping; relationship of expenses to business; late filing; reliance on tax professional.
Muhieddin A. Ghazawi et ux. T.C. Memo. 2017-48 Sec. 61; 162; 163; 446; 1366; 6662; 6664; gross income definition; business expenses; interest deduction; methods of accounting; pass-through items to shareholders; accuracy-related penalty; reasonable cause; home mortgage interest; unreported income; income reconstruction; bank deposits method; substantiation of cost of goods sold; reliance on tax professional.
Rafael Martinez T.C. Memo. 2017-47 Sec. 6330; hearing before levy; collection due process; some of liabilities based on substitute returns; self-assessed tax on return; failure to submit documentation for offer in compromise; compliance.
Patrick Bitter, Jr. T.C. Memo. 2017-46 Sec. 6330; hearing before levy; collection due process; raising of underlying liability; tax shelter disclosure penalty; collection alternative not requested.
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

Alfred H. Shum T.C. Summary Opinion 2017-40 Sec. 6330; hearing before levy; collection due process; challenge of underlying tax liability; failure to offer collection alternative.
Reza Zia-Ahmadi et ux. T.C. Summary Opinion 2017-39 Sec. 11; 162; 163; 167; 262; 274; 316; 448; 731; 1402; 6662; 6664; tax rate on corporations; business expenses; interest expense; depreciation; personal expenses; business expense substantiation; dividend defined; limitation on use of cash method; gain or loss on partnership distributions; net earnings from self employment; accuracy-related penalty; reasonable cause; payment of personal expenses by partnership; constructive dividends; personal service corporation; 35-percent tax rate; loan to shareholders; respecting separate entities; lease payments to related entity; ownership of depreciated property.
Alan David Snow T.C. Summary Opinion 2017-38 Sec. 6330; hearing before levy; collection due process; installment agreement rejected; not in compliance with tax obligations.
Michael E. Nordloh et ux. T.C. Summary Opinion 2017-37 Sec. 61; 6662; gross income definition; accuracy-related penalty; lump-sum social security payment; repayment of amount in following year; claim of right; reliance on professional.
Kent E. Keeter T.C. Summary Opinion 2017-36 Sec. 61; 104; gross income definition; damage awards and sick pay; military disability retirement income; injury or sickness from active service in armed forces; finding of disability.
Mary T. Kahmann et vir T.C. Summary Opinion 2017-35 Sec. 61; 446; 6662; gross income definition; methods of accounting; accuracy-related penalty; Forms 1099-K; reconstruction of income; bank deposits method.
Joseph Palisi et ux. T.C. Summary Opinion 2017-34 Sec. 61; 446; 6662; 6664; gross income definition; methods of accounting; accuracy-related penalty; reasonable cause; reconstruction of income; bank deposits method; unreported income.
Paul Niski T.C. Summary Opinion 2017-33 Sec. 6330; 6511; 6601; 6651; 6654; hearing before levy; limitations on credit or refund; interest on underpayment; failure to file or pay; failure to pay estimated tax; collection due process; review by SO.
Jagtar Singh Khinda T.C. Summary Opinion 2017-32 Sec. 162; 163; 164; 274; 6662; business expenses; interest; taxe; business expense substantiation; accuracy-related penalty; meal and entertainment expenses; qualified residence interest; unreimbursed employee business expenses.
Sharon M. Nielsen et vir T.C. Summary Opinion 2017-31 Sec. 167; depreciation; land vs. land improvements; allocation of basis to land and buildings.
Trudy S. Reed T.C. Summary Opinion 2017-30 Sec. 108; cancellation of debt income; proof of insolvency; access to Thrift Savings account for medical bills.
Edgar David Brown T.C. Summary Opinion 2017-29 Sec. 162; 170; 212; 274; 280A; 6651; 6662; 6664; business expenses; charitable contributions; charitable contributions; expenses for the production of income; business expense substantiation; disallowance of expenses in connection with dwelling unit; failure to file or pay; accuracy-related penalty; reasonable cause; regular and exclusive use of home for business; requirement of home office by employer; reimbursement of employee business expenses; business purpose of expenses.
Agwu U. Okiyi et ux. T.C. Summary Opinion 2017-28 Sec. 162; 170; 274; 6662; 6664; business expenses; charitable contributions; business expense substantiation; accuracy-related penalty; reasonable cause; contemporaneous written acknowledgment for charitable contribution; documentation; recordkeeping; employee business expenses; eligible for reimbursement.
Jason M. Roach T.C. Summary Opinion 2017-27 Sec. 24; 152; 6662; child tax credit; dependent definition; accuracy-related penalty; additional child tax credit; qualifying relative; lived with taxpayer more than one-half of year; support test; Form 8332.
Megan Zhao Creigh et vir T.C. Summary Opinion 2017-26 Sec. 162; 6662; 6664; business expenses; accuracy-related penalty; reasonable cause; education expenses; MBA; qualification in new trade or business; car and truck expenses for travel to classes; reliance on tax professional.
Dreck Spurlock Wilson T.C. Summary Opinion 2017-25 Sec. 162; 280A; 6662; 6664; business expenses; home office; accuracy-related penalty; reasonable cause; legal and professional expenses; portion of home used exclusively for business.
Gregory Alan Brown T.C. Summary Opinion 2017-24 Sec. 2; 163; 316; head of household; mortgage interest; dividends; mortgage payment by corporation; married at close of tax year.
William A. Alexander, Jr. et ux. T.C. Summary Opinion 2017-23 Sec. 61; 86; 6662; gross income definition; social security benefits; accuracy-related penalty; gift vs. income; compensation.
Adrian Corey Jenkins T.C. Summary Opinion 2017-22 Sec. 2; 24; 32; 152; head of household; child tax credit; earned income credit; dependent definition; qualifying relative; qualifying child; lived with taxpayer for more than one-half of the year.
Windy W. Harris T.C. Summary Opinion 2017-21 Sec. 6015; innocent spouse relief; loss from not-for-profit activity; actual knowledge of facts.
Brandi R. Mccutcheon-Cox T.C. Summary Opinion 2017-20 Sec. 24; 152; child care credit; dependent definition; conditional release of exemption; custodial parent; Form 8332 not signed.
Pardeep Singh T.C. Summary Opinion 2017-19 Sec. 163; 461; 6662; 6664; interest; taxable year of deduction; accuracy-related penalty; reasonable cause; mortgage points; points on purchase or improvement loan.
Walter Cancel T.C. Summary Opinion 2017-18 Tax Court Rule 123; failure to prosecute; taxpayer failed to cooperate with the IRS in preparing case; failure to respond to Tax Court's orders.
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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--Last Update 06/17/17