Small Business Taxes & Management

Tax Court Cases--2019


Small Business Taxes & ManagementTM--Copyright 2019, A/N Group, Inc.

 

Below is a list of the 2019 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're using the full case name instead of our previous custom of substituted et ux. and et vir for the spouse's full name. 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--2018
Tax Court Cases--2017
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 September 7, 2019

Tax Court Cases

None

 

Memorandum Decisions

David K. Wagstaff and Jeffrey A. Davis T.C. Memo. 2019-114 Sec. 7430; Tax Court Rule 231; recovery of litigation costs; conflicting information from two governmental agencies; jurisdiction.
Melinda Jean Welwood T.C. Memo. 2019-113 Sec. 6015; innocent spouse relief; constructive knowledge of returns; advice of lawyer and accountant; equitabl relief; knowledge of understatement; factors weighed.
Derrick Barron Tartt T.C. Memo. 2019-112 Sec. 6320; 6330; 6673; hearing on filing lien notice; hearing before levy; penalty for delay; collection due process; failure to offer collection alternative; collection alternative; frivolous position.
George J. Smith and Sheila Ann Smith T.C. Memo. 2019-111 Sec. 3401; 6020; 6651; 6673; definitions; substitute for return; failure to file or pay; penalty for delay; IRS not required to make substitute return; frivolous positions.

 

Summary Opinions

Steven E. Mendelson T.C. Summary Opinion 2019-25 Sec. 63; 162; 166; 274; 280A; 6651; 6654; taxable income definition; business expenses; bad debts; business expense substantiation; home office; failure to file or pay; failure to pay estimated tax; standard deduction in excess of itemized; recordkeeping; documentation; documentation for existence of bona fide debt; reasonable cause.

 

Cumulative Cases - 2019

Tax Court Cases

Gwendolyn L. Kestin 153 T.C. No. 2 Sec. 6320; 6702; 6751; hearing on filing lien notice; frivolous returns; procedural requirements; frivolous Form 1040X; compliance with written supervisory approval for penalty; omission of assessment date on NFTL.
William C. Lipnick and Dale A. Lipnick 153 T.C. No. 1 Sec. 163; 752; interest expense; treatment of certain liabilities; gift and bequest of partnership interest; investment interest expense; interest expense passed through to taxpayer.
Atlantic Pacific Management Group, LLC 152 T.C. No. 17 Sec. 6330; hearing before levy; collection due process; jurisdiction by Tax Court; no notice of determination issued; late filing of partnership return; failure to file information return.
Linda J. Romano-Murphy 152 T.C. No. 16 Sec. 6672; failure to collect and pay over taxes; penalty assessed before making a final administrative determination; harmless error by IRS.
Mary K. Feigh and Edward M. Feigh 152 T.C. No. 15 Sec. 32; 131; earned income credit; certain foster care payments; foster care payments as earned income; Notice 2014-7.
DAF Charters, LLC 152 T.C. No. 14 Sec. 3121; definitions; employment taxes; limited liability company; sole member; disregarded entity; not disregarded for employment tax purposes.
James Clay and Audrey Osceola 152 T.C. No. 13 Sec. 61; 6662; 6751; 7491; gross income definition; accuracy-related penalty; procedural requirements; burden of proof; distributions from Native American operated casino vs. leases of land; supervisory approval for penalty.
Randy Alan Carpenter 152 T.C. No. 12 Sec. 6201; assessment authority; amounts for criminal restitution; collection actions to secure payment; collection of amounts ordered by sentencing court.
Maria Ivon Moya 152 T.C. No. 11 Tax Court Rule 34; Petition; look behind notice of deficiency; violation of Taxpayer's Bill of Rights; TBOR.
Whistleblower 769-16W 152 T.C. No. 10 Sec. 7623; expenses of detection of underpayments and fraud; remand of whistleblower case to the Whistleblower's Office for further consideration.
Charles K. Breland, Jr. 152 T.C. No. 9 Sec. 6871; claims for taxes in receivership proceedings; bankruptcy; tax debts excepted from discharge in bankruptcy; waiver by IRS.
ATL & Sons Holdings, Inc. 152 T.C. No. 8 Sec. 6699; 6751; failure to file S corporation return; procedural requirements; late filing of Form 1120S; written approval of penalty by supervisor; reasonable cause.
Damian K. Gregory and Shayla A. Gregory 152 T.C. No. 7 Sec. 6212; 6213; notice of deficiency; petition to Tax Court; last known address; Forms 2848 and 4868 as notification of updated address; jurisdiction; late filing of petition to Tax Court.
Levon Johnson 152 T.C. No. 6 Sec. 36B; premium tax credit; social security benefits included in modified adjusted gross income.
Blue Lake Rancheria Economic Development Corporation; Mainstay Business Solutions 152 T.C. No. 5 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; unpaid employment taxes; tribal corporation; assets and liabilities distinct from those of the corporation; subdivision of corporation.
Palmolive Building Investors, LLC, DK Palmolive Building Investors Participants, LLC, Tax Matters Partner 152 T.C. No. 4 Sec. 6751; procedural requirements; supervisory approval of penalties; multiple penalties different times and individuals approval.
Craig S. Walquist and Maria L. Walquist 152 T.C. No. 3 Sec. 6673; 6751; penalty for delay; procedural requirements; written supervisory approval not required; maintaining frivolous position; previous warning.
Eaton Corporation and Subsidiaries 152 T.C. No. 2 Sec. 964; miscellaneous provisions; controlled foreign corporation partners; computation of earnings and profits; Subpart F inclusions; conforming foreign corporation's P&L statement.
Renee Vento, et al. 152 T.C. No. 1 Sec. 7453; Tax Court Rule 155; rules of practice, procedure and evidence; new issues in a Rule 155 proceeding; new arguments; foreign tax credits; U.S. Virgin Islands.

 

Memorandum Decisions

David K. Wagstaff and Jeffrey A. Davis T.C. Memo. 2019-114 Sec. 7430; Tax Court Rule 231; recovery of litigation costs; conflicting information from two governmental agencies; jurisdiction.
Melinda Jean Welwood T.C. Memo. 2019-113 Sec. 6015; innocent spouse relief; constructive knowledge of returns; advice of lawyer and accountant; equitabl relief; knowledge of understatement; factors weighed.
Derrick Barron Tartt T.C. Memo. 2019-112 Sec. 6320; 6330; 6673; hearing on filing lien notice; hearing before levy; penalty for delay; collection due process; failure to offer collection alternative; collection alternative; frivolous position.
George J. Smith and Sheila Ann Smith T.C. Memo. 2019-111 Sec. 3401; 6020; 6651; 6673; definitions; substitute for return; failure to file or pay; penalty for delay; IRS not required to make substitute return; frivolous positions.
Duane Lee Chapman and Alice E. Smith T.C. Memo. 2019-110 Sec. 6212; notice of deficiency; deficiency notice valid; last known address; untimely petition.
Suresh Hatte T.C. Memo. 2019-109 Sec. 162; 274; business expenses; business expense substantiation; standard mileage method; car logs; required recordkeeping; documentation; contemporaneous record; conflicting log entries.
Denise Celeste McMillan T.C. Memo. 2019-108 Sec. 61; 162; 183; 280A; 6662; gross income definition; business expenses; not-for-profit activities; home office; accuracy-related penalty; lawsuit settlement income; not for physical injuries or sickness; Schedule C horse breeding/showing activity; home office exclusive use.
Taryn L. Dodd T.C. Memo. 2019-107 Sec. 6330; hearing before levy; collection due process; challenge to underlying tax liability; abuse of discretion by settlement officer.
Mark Gerald Skitzki T.C. Memo. 2019-106 Sec. 2; 24; 32; 152; head of household; child tax credit; earned income tax credit; dependent definition; qualifying child; principal place of abode for more than half the year.
Maria M. Faust T.C. Memo. 2019-105 Sec. 61; 71; 215; 6662; gross income definition; alimony; alimony; accuracy-related penalty; stipulation agreement entered into to pay alimony; divorce decree; pendente lite order; living separately; payments met requirements for alimony.
Ronnie Hairston and Gloria Cruz Hairston T.C. Memo. 2019-104 Sec. 469; passive activity losses; real estate professional; calendar entries ambiguous; detail lacking; 750 hour requirement for material participation.
King Solarman, Inc. T.C. Memo. 2019-103 Sec. 446; 453; 471; 6662; 6664; methods of accounting; installment sales; general rule for inventories; accuracy-related penalty; reasonable cause; accrual method of accounting; use of inventory mandatory; small business taxpayer exception; all events test; installment method of accounting not applicable to merchandise.
Robert G. Taylor, II T.C. Memo. 2019-102 Sec. 165; 6662; 6664; losses; accuracy-related penalty; reasonable cause; casualty loss deduction; competent appraisals of storm damage; pre- and post- casualty fair market value; source of damage to property.
Estate of Aaron U. Jones, Donor, Deceased, Rebecca L. Jones and Dale A. Riddle, Personal Representatives T.C. Memo. 2019-101 Sec. 2512; valuation of gifts; timberland; lumber mill; integrated operation; valuation methods.
Todd Myron Moore T.C. Memo. 2019-100 Sec. 162; 163; 6662; 6664; business expenses; interest expense; accuracy-related penalty; reasonable cause; bona fide loan; payment of interest; substantiation; documentation; recordkeeping; commission expenses deductible.
Jon D. Adams T.C. Memo. 2019-99 Sec. 6404; abatement of interest; performance of ministerial or managerial acts; period when abatement possible.
Kent Alan Wegener and Shinae Wegener T.C. Memo. 2019-98 Sec. 162; 183; 212; 6651; business expenses; not-for-profit activities; expenses for the production of income; failure to file or pay; involvement in farming activity; trade or business; hobby losses; profit motive.
Bianca Lavinia Gilmore T.C. Memo. 2019-97 Sec. 6330; hearing before levy; collection due process; doubt as to liability not raised at collection due process hearing; failure to provide financial information; failure to demonstrate hardship for collection alternative.
Patrick Combs T.C. Memo. 2019-96 Sec 316; 6651; 6662; 6673; dividend definition; failure to file or pay; accuracy-related penalty; penalty for delay; constructive dividends; payment of personal expenses by corporation; earnings and profits computation; personal vs. business expenses; frivolous arguments.
Hisham N. Ashkouri and Ann C. Draper T.C. Memo. 2019-95 Sec. 111; 162; 263A; 274; 1222; 1231; 6662; recovery of tax benefit items; business expenses; capitalization of certain costs; business expense substantiation; terms relating to capital gains and losses; property used in a trade or business; capitalization of real property expenses; expenses for marketing and promotion; business purpose for meals and entertainment; business purpose for traveling and other expenses; state tax refunds included in income.
Giving Hearts, Inc. T.C. Memo. 2019-94 Sec. 501; exempt organizations; operated exclusively for exempt purposes; generating sales leads for a for-profit organization; revocation of exempt status.
Christopher Michael Dufresne T.C. Memo. 2019-93 Sec. 61; 6662; gross income definition; accuracy-related penalty; cash deposits unreported income; additional compensation; repayment of loans; bona fide loan.
Danny R. Love T.C. Memo. 2019-92 Sec. 6320; 6330; 6404; hearing on filing lien notice; hearing before levy; abatements; offer-in-compromise rejected; reasonable ability to pay; private school expenses not allowable in determining ability to pay; no unreasonable delay in action by IRS.
Jason George Demar T.C. Memo. 2019-91 Sec. 2; 24; 32; 152; head of household status; child tax credit; earned income tax credit; dependent definition; EITC; terms of divorce; Form 8332; release of claim to exemption by custodial parent.
John E. Rogers and Frances L. Rogers, et al. T.C. Memo. 2019-90 Sec. 61; 162; 165; 166; 172; 212; 263A; 274; 6662; gross income definition; business expenses; losses; bad debts; net operating losses; expenses for the production of income; uniform capitalization rules; business expense substantiation; accuracy-related penalty; justification of expenses; recordkeeping; documentation; travel expense.
Deborah P. Richards and Daniel D. Richards T.C. Memo. 2019-89 Sec. 6320; 6323; 6330; hearing on filing lien notice; validity and priority against certain persons; hearing before levy; collection due process; request for withdrawal of notice of filing tax lien; NFTL; request based on negative affect on taxpayers' credit rating.
Brigette Ogden T.C. Memo. 2019-88 Sec. 6015; innocent spouse relief; late filing of request for relief; tax deficiency resulting from spouse requesting relief; abuse requirement.
Janice Kay Haskins and Julian William Haskins T.C. Memo. 2019-87 Sec. 67; 162; 167; 168; 217; 911; 6662; 2-percent floor on miscellaneous itemized deductions; business expenses; depreciation; accelerated cost recovery system; moving expenses; foreign earned income exclusion; accuracy-related penalty; requirements for exclusion; substantiation of moving expenses.
Irvin Hannis Catlett, Jr. T.C. Memo. 2019-86 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; abatement of criminal restitution; obligation not enforceable.
Shahram Kohan and Yonina Kohan T.C. Memo. 2019-85 Sec. 6501; 6663; 6664; limitations on collections and assessments; civil fraud; reasonable cause; badges of fraud; reliance on tax professional; failure to provide accurate information to tax preparer.
Martin A. Kapp T.C. Memo. 2019-84 Sec. 6320; 6330; 6751; 6701; hearing on filing lien notice; hearing before levy; procedural requirements; penalties for aiding and abetting underpayment of tax liabilities; collection due process; mariners; deduction of cost of meals furnhished by employer; returns prepared by CPA; penalties personally approved.
Nancy Burack T.C. Memo. 2019-83 Sec. 408; individual retirement accounts; distribution from IRA; rollover; bookkeeping error from IRA provider.
Samuel Wegbreit and Elizabeth J. Wegbreit; The Samuel Wegbreit Trust Fund T.C. Memo. 2019-82 Sec. 61; 641; 1035; 6651; 6663; gross income definition; imposition of tax; exchanges of insurance policies; failure to file or pay; civil fraud; reconstruction of income; bank deposits method; failure to maintain adequate books and records; trust fund; grantor fund; sham; economic substance; sham exchange of insurance policies; valid life insurance policy.
Stanley H. EpsteinT.C. Memo. 2019-81 Sec. 7623; expenses of detection of underpayment and fraud; whistleblower award; threshold requirements; claims denied.
Kelvin R. Crews T.C. Memo. 2019-80 Sec. 6330; 6672; hearing before levy; failure to collect and pay over taxes; trust fund recovery penalty.
Troy K. Dixon T.C. Memo. 2019-79 Sec. 6320; 6330; 6672; hearing on filing lien notice; hearing before levy; failure to collect and pay over taxes; trust fund recovery penalty; collection due process; responsible person; abuse of discretion.
Hector Baca and Magdalena Baca T.C. Memo. 2019-78 Sec. 162; 179; 274; 280A; 6662; 6664; business expenses; expensing business assets; business expense substantiation; business use of home; accuracy-related penalty; reseasonable cause; strict substantiation rule; listed property; travel and entertainment; diary; unreimbursed employee business expenses; failure to attach Form 8829 Expenses for Business Use of Your Home; ownership of property for depreciation.
Sheldon Sapoznik and Melissa McCrossen T.C. Memo. 2019-77 Sec. 61; 162; 183; gross income definition; business expenses; not-for-profit activities; hobby losses; factors analyzed.
Ronald E. Byers T.C. Memo. 2019-76 Sec. 6651; Tax Court Rule 162; failure to file or pay; motion to vacate order and decision; failure to establish prima facie case; fraud on the Court.
Paul Staples T.C. Memo. 2019-75 Sec. 61; 1401; 6651; 6673; gross income definition; self-employment tax; failure to file or pay; penalty for delay; unreported income; frivolous arguments; income not loans.
Aldo V. Fonticiella T.C. Memo. 2019-74 Sec. 6330; hearing before levy; collection due process; IRS Appeals Office not unconstitutional; arguments addressed in Tucker.
Philip N. Rose and Leanna Rose T.C. Memo. 2019-73 Sec. 61; 162; 212; 280A; 469; 6651; 6662; Tax Court Rule 155; gross income definition; business expenses; expenses for the production of income; disallowance of expenses in connection with dwelling unit; passive activity losses; failure to file or pay; accuracy-related penalty; unreported income; real estate transactions; explanation of cash deposits; records on home sale; real estate professional; timely filing; recordkeeping; documentation.
Gregory L. Murphy and Monica J. Murphy T.C. Memo. 2019-72 Sec. 6330; hearing before levy; collection due process; claimed credit on refund claim denied; failure to propose collection alternative.
James P. Donoghue and Elaine S. Donoghue T.C. Memo. 2019-71 Sec. 183; 6662; not-for-profit activities; accuracy-related penalty; nine factors analyzed; logs of time spent in activity; projected profit or loss; failure to generate profit.
Masoud Fakumejad T.C. Memo. 2019-70 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; notice of deficiency already received; opportunity to challenge; documentation of estimated tax payments.
Mikel A. Brown, Sr. and Debra A. Brown T.C. Memo. 2019-69 Sec. 61; 107; 162; 274; 469; 6662; 6664; gross income definition; rental value of parsonages; business expenses; business expense substantiation; passive activity losses; accuracy-related penalty; reasonable cause; pastor of independent church; unreported income; bank deposit method; reconstructed income; refuting revenue agent's analysis; material participation test; auto expenses; recordkeeping; documentation; car log.
Indus Group, Inc. T.C. Memo. 2019-68 Sec. 6330; 6656; Tax Court Rule 121; hearing before levy; failure to deposit taxes; collection due process; unpaid employment taxes; collection alternatives; unfiled returns.
Maria Shenorah McCree T.C. Memo. 2019-67 Sec. 61; 72; 402; 6330; 7122; gross income definition; distributions; taxability of beneficiary of employees' trust; hearing before levy; compromises; proof of rollover; 10-percent penalty; collection due process.
Curtiss T. Williams T.C. Memo. 2019-66 Sec. 6213; 7502; notice of deficiency; petitions to Tax Court; late filed petition; proof of mailing; normal time to arrive by mail; burden of proof.
K. Slaughter T.C. Memo. 2019-65 Sec. 1401; 1402; 6662; self-employment rate of tax; definitions; accuracy-related penalty; self-employment income vs. royalty payments; brand promotion; trade or business.
Mitchel Skolnick and Leslie Skolnick et al. T.C. Memo. 2019-64 Sec. Tax Court Rule 143; evidence; motion in limine; motion to suppress report of expert witness; report's failure to satisfy evidence rules of Tax Court.
Amnesty National T.C. Memo. 2019-63 Sec. 448; 6662; Tax Court Rule 121; personal service corporation; accuracy-related penalty; summary judgment; failure to produce documents; discovery.
H. Garrett Frey and Mary K. Frey T.C. Memo. 2019-62 Sec. 6651; 6662; 7491; failure to file or pay; accuracy-related penalty; burden of proof; competent tax professional; IRS burden of proof with respect to penalties.
John E. Rogers and Frances L. Rogers, et al. T.C. Memo. 2019-61 Sec. 6015; 6751; innocent spouse relief; procedural requirements; spouse not eligible for equitable relief; supervisory approval of penalty; partnership vs. partner level for penalties.
Kevin Scott Millen T.C. Memo. 2019-60 6330; hearing before levy; collection due process; rejection of collection alternative; failure to submit amended return; minimum essential health coverage; shared responsibility payment; termination of installment agreement; not current on tax obligations.
Charles K. Breland, Jr. and Yvonne S. Breland T.C. Memo. 2019-59 Sec. 165; 1001; 1031; losses; determination of amount of gain or loss; like-kind exchange; adjusted basis of property; foreclosure; default on mortgage loan; satisfaction of loan; fair market value of foreclosed property; allocation of basis of multiple properties.
Edward F. Sadjadi and Cynthia M. Sadjadi T.C. Memo. 2019-58 Sec. 6330; hearing before levy; collection due process; offer-in-compromise; default; failure to meet current obligation.
Robert A. Oliveri T.C. Memo. 2019-57 Sec. 170; 6651; 6662; 6751; charitable contributions; failure to file or pay; accuracy-related penalty; procedural requirements; personal expenses vs. charitable; involvement in religious activities; supervisory approval for penalty; late filing.
Leslie Ruppert Krehnbrink and Robert Grift Krehnbrink T.C. Memo. 2019-56 Sec. 6330; 6404; 6751; hearing before levy; abatements; procedural requirements; collection due process; failure to offer collection alternatives; failure to reasonably cooperate during examination; failure to identify IRS error; supervisory approval for penalty.
Constance H. Briley T.C. Memo. 2019-55 Sec. 6015; innocent spouse relief; knowledge of items resulting in tax understatement; NOL of S corporation; equitable relief; disqualified assets; transfer of assets.
Mary Bui T.C. Memo. 2019-54 Sec. 61; 108; gross income definition; cancellation of debt income; qualified principal residence indebtedness; insolvency exclusion.
Jevon Kearse T.C. Memo. 2019-53 Sec. 6213; 6320; 6330; petition to Tax Court; hearing on filing lien notice; hearing before levy; collection due process; proper mailing; proof of mailing.
Rudy Rosenberg T.C. Memo. 2019-52 Sec. 6020; 6330; substitute for return; hearing before levy; collection due process; receipt of notice of deficiency; challenge of underlying liability; unclaimed certified mail; case on remand; summary judgment; taxpayer's failure to provide credible support for claims; second settlement officer for supplemental CDP hearing.
Craig Kenneth Martin T.C. Memo. 2019-51 Sec. 6015; innocent spouse relief; equitable relief; economic hardship; lack of copy of tax return for the year at issue.
Fred B. Barbara and Lisa M. Barbara T.C. Memo. 2019-50 Sec. 469; 6662; 6664; passive activity losses; accuracy-related penalty; reasonable cause; material participation.
Gregory Dwight Goosby, Sr. T.C. Memo. 2019-49 Sec. 6330; hearing before levy; collection due process; rejection of installment agreement; abuse of discretion; calculation of living expenses.
Jason Aaron Cook T.C. Memo. 2019-48 Sec. 1; 24; 32; 152; head of household; child tax credit; earned income tax credit; qualifying child; principal place of abode for more than half the year; Form 8332; noncustodial parent; earned income credit qualifying child.
Norman Hinerfeld T.C. Memo. 2019-47 Sec. 7122; offer-in-compromise; fair market value of property; adequate assets to satisfy tax liability; nominee; transfer for adequate consideration.
Turner Ansley T.C. Memo. 2019-46 Sec. 6330; 7122; hearing before levy; offer-in-compromise; collection due process; doubt as to collectibility; reasonable collection potential; expenses allowed; substantiation; basic living expenses.
Jason Bontrager T.C. Memo. 2019-45 Sec. 7430; Tax Court Rule 231; recovery of litigation costs; prevailing party; assessment of underpayment interest.
Timothy Todd Fisher and Christina Fisher T.C. Memo. 2019-43 Sec. 36B; Tax Court Rule 121; advance premium tax credit; income above threshold; married for part of year; alternative computation.
Coastal Luxury Management Inc. T.C. Memo. 2019-43 Sec. 6330; hearing before levy; collection due process; installment agreement rejected; taxpayer not in compliance with current filings.
Keith A. Bolles and Shelley R. Bolles T.C. Memo. 2019-42 Sec. 61; 162; 165; 707; gross income definition; business expenses; losses; transactions between partner and partnership; control and dominion over funds; deduction for contract labor; checks; cost of goods sold; substantiation of amounts paid; casualty loss; proof of adjusted basis in property; reliance on valuation provided by insurance company.
Charles W. Monroe and Rebecca A. Monroe T.C. Memo. 2019-41 Sec. 36B; premium tax credit; modified adjusted gross income calculation; social security benefits; qualification for credit.
Rick B. Ferguson and Deanna Ferguson T.C. Memo. 2019-40 Sec. 162; 165; 1366; business expenses; losses; pass-thru of items to shareholders; settlement payments in lawsuit; origin of claim; multiple entities; debt vs. equity in S corporation; allocation of settlement deduction by Tax Court; payment by shareholder capital contribution to S corporation; C corporation's settlement payment by shareholder unreimbursed business expenses; capital loss vs. ordinary loss on sale of parcels as part of settlement.
Donnovan M. Mcnely and Betty J. Cruz-Mcnely T.C. Memo. 2019-39 Sec. 165; losses; theft loss deduction; no effort to investigate loss; fraud scheme.
Estate of Scott C. Ronning, Deceased, Harlan L. Paul, Personal Representative T.C. Memo. 2019-38 Sec. 61; 162; 172; 6662; 6664; gross income definition; business expenses; net operating loss; accuracy-related penalty; reasonable cause; unreported income; cost of goods sold; computation error for NOL; personal representative responsible for accuracy-related penalty.
Siemer Milling Company T.C. Memo. 2019-37 Sec. 41; 174; 6662; 6664; 6751; credit for increasing research expenditures; research and experimental expenditures; accuracy-related penalty; reasonable cause; procedural requirements; qualifying research expenses; four tests for Sec. 41; business component; uncertainty as to outcome.
Ames D. Ray T.C. Memo. 2019-36 Sec. 162; 212; 6662; business expenses; expenses for the production of income; accuracy-related penalty; legal expenses; relationship to trade or business; ordinary and necessary.
Thomas J. Francel T.C. Memo. 2019-35 Sec. 6015; innocent spouse relief; failure to meet two of five requirements; tax deficiencies allocable to petitioner; S corporation sole shareholder.
Syzygy Insurance Co., Inc., et al. T.C. Memo. 2019-34 Sec. 831; 6662; 6664; insurance companies other than life; accuracy-related penalty; reasonable cause; microcaptive insurance company; definition of insurance; deductible premiums.
Daryl Ragsdale T.C. Memo. 2019-33 Sec. 6330; 7122; hearing before levy; offer-in-compromise; collection due process; reliance on financial recommendation by offer specialist; reasonable collection potential; harmless calculation mistake; effect on outcome.
Brokertec Holdings, Inc. f.k.a. ICAP US Investment Partnership T.C. Memo. 2019-32 Sec. 61; 118; gross income definition; contributions to capital; state's intent in making payment to corporation was contribution to capital; no connection between contribution by state and services provided by corporation.
Timbron International Corporation; Timbron Holdings Corporation T.C. Memo. 2019-31 Sec. 6213; Tax Court Rule 60; notice of deficiency; lack of jurisdiction; corporate privileges suspended under state law.
Michael E. Brown and Miriam L. Mercado-Brown T.C. Memo. 2019-30 Sec. 162; 6662; business expenses; accuracy-related penalty; travel expenses; tax home; taxpayer should have been suspicious of reporting position.
Gardinier Associates, Inc. T.C. Memo. 2019-29 Sec. 6330; hearing before levy; collection due process; financial information provided was illegible; failure to be current on tax obligations.
Jill Schermer T.C. Memo. 2019-28 Sec. 691; recipients of income in respect of decedents; IRD; proof estate tax paid on amounts; accounts not part of estate in question.
Martin G. Plotkin T.C. Memo. 2019-27 Sec. 6330; hearing before levy; collection due process; period for collection closed; uncollectibility of part of the liabilities.
Allen R. Davison III T.C. Memo. 2019-26 Sec. 6330; 6662; 7491; hearing before levy; accuracy-related penalty; burden of proof; collection due process; FPAA; Final Partnership Administrative Adjustment.
Charles M. Steiner and Rhoda L. Steiner T.C. Memo. 2019-25 Sec. 183; not-for-profit activities; hobby losses; factors examined; yacht charter.
Katherine Denise Henry, Petitioner and Timmy H. Black, Intervenor T.C. Memo. 2019-24 Sec. 6015; innocent spouse relief; threshold conditions met; streamlined determination; equitable relief; knowledge of income; factors examined.
Whistleblower 15488-17W T.C. Memo. 2019-23 Sec. 7623; expenses of detection of underpayment and fraud; determination of award; jurisdiction; ability to seek judicial review.
Milton E. McMurtry, Jr. T.C. Memo. 2019-22 Sec. 6330; hearing before levy; collection due process; rejection of collection alternatives; failure to supply financial information; additional time provided.
Jon Robert Ludlam and Maria Louisa Ludlam T.C. Memo. 2019-21 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; additional time to prepare; failure to provide collection alternatives; failure to provide additional information.
Edward G. Kurdziel, Jr. T.C. Memo. 2019-20 Sec. 172; 183; 274; 6751; net operating losses; not-for-profit activities; business expense substantiation; procedural requirements; profit motive; plan to realize profit; lack of gross income; commuting vs. unreimbursed business expenses; NOL; documentation; recordkeeping; supervisor's approval for penalty.
Carlos Langston and Pamela Langston T.C. Memo. 2019-19 Sec. 165; 167; 274; 6662; 6664; losses; depreciation; business expense substantiation; accuracy-related penalty; reasonable cause; apartment as income-producing asset; conversion from personal use; profit motive; loss on personal asset; business use of property; recordkeeping; documentation.
Robert Wesley T.C. Memo. 2019-18 Sec. 6330; 6673; hearing before levy; damages for delay; collection due process; precluded from challenging liability; res judicata; frivolous arguments; failure to submit collection alternatives; failure to submit financial information; frivolous litigation penalty.
David F. Burbach T.C. Memo. 2019-17 Sec. 167; 179; 404; 6651; 6662; depreciation; expensing business assets; deduction for contributions to pension plan; failure to file or pay; accuracy-related penalty; basis for depreciation; pension contributions only for employee; employee vs. director of corporation; good-faith reliance on professional advice.
Marc L. Mancini T.C. Memo. 2019-16 Sec. 165; 6751; losses; procedural requirements; gambling losses as casualty losses; side effect of prescription drug; physical damage to property requirement of casualty loss; supervisory approval for accuracy-related penalty.
Teri Jordan T.C. Memo. 2019-15 Sec. 7502; timely mailing as timely filing; untimely Tax Court petition; private postage label.
Denine Kerns and Bryan Kerns T.C. Memo. 2019-14 Sec. 36B; 61; advanced premium tax credit; gross income definition; excess advance premium credit in income; failure to reconcile premium credit on return.
Ronald Curtiss Grumbkow T.C. Memo. 2019-13 Sec. 6330; hearing before levy; collection due process; failure to offer collection alternative; failure to provide financial information; compliance with tax return filings.
Laura Denise Contreras T.C. Memo. 2019-12 Sec. 6015; innocent spouse relief; equitable relief; streamline determination; threshold requirements; economic hardship; knowledge of inability to pay; abuse or duress.
Jeffrey Siegel and Sandra Siegel T.C. Memo. 2019-11 Sec. 71; 215; alimony; alimony; payments in arrears; payment pursuant to court order; lump-sum payment treated as alimony.
Peter E. Hendrickson and Doreen M. Hendrickson T.C. Memo. 2019-10 Sec. 61; 6501; 6651; 6663; gross income definition; limitations on collections and assessments; failure to file or pay; civil fraud; unreported income; statute of limitations; proof of income; frivolous arguments; returns did not contain enough information to be valid.
Daniel James Humiston T.C. Memo. 2019-9 Sec. 6320; 6330; 6672; 6751; hearing on filing lien notice; hearing before levy; failure to collect and pay over taxes; procedural requirements; trust fund recovery penalty; TFRP; supervisory approval requirement; failure to provide financial information.
Daniel R. Doyle and Lynn A. Doyle T.C. Memo. 2019-8 Sec. 104; 162; 6662; 6751; damage awards and sick pay; business expenses; accuracy-related penalty; procedural requirements; emotional distress; physical injury or sickness; legal fees related to employment; supervisory approval of penalty; reliance on competent professional; reasonable cause.
Steven Samaniego T.C. Memo. 2019-7 Sec. 6330; hearing before levy; collection due process; collection alternative requested; installment agreement; failure to provide financial information.
Robert C. Gunther and Jayne C. Gunther T.C. Memo. 2019-6 Sec. 6230; 6231; additional adminstrative provisions; notice of proceedings and adjustments; partner-level determination; TEFRA proceedings; jurisdiction to consider penalties.
Anthony Meggs and Beth Meggs T.C. Memo. 2019-5 Sec. 1235; sale or exchange of patents; consideration as long-term capital gain; fact pattern.
John F. Campbell T.C. Memo. 2019-4 Sec. 6330; 7122; hearing before levy; offer-in-compromise; collection due process; reasonable collection potential; RCP; dissipated assets; amount collectible; amounts transferred before notification of audit examination; abuse of discretion.
2590 Associates, LLC, 5615 Associates, LLC, as Successor in Interest to, 5615 Associates, LP, Tax Matters Partner T.C. Memo. 2019-3 Sec. 166; bad debt losses; bona fide debt; factors examined.
Estate of Arthur S. Andersen, Deceased, Tena Haroldson, Eric Stoval, and Harold Albright, Personal Corepresentatives T.C. Memo. 2019-2 Sec. 162; 274; 1016; business expenses; business expense substantiation; adjustments to basis; substantiation; documentation; recordkeeping; business purpose for expenses; proof of increases to basis; proof of depreciation.
Eric Belanger T.C. Memo. 2019-1 Sec. 6320; 6330; 6673; hearing on filing lien notice; hearing before levy; penalty for delay; collection due process; notices of deficiency issued; challenge of liability; evidence with respect to abuse of discretion; frivolous arguments.

 

Summary Opinions

Steven E. Mendelson T.C. Summary Opinion 2019-25 Sec. 63; 162; 166; 274; 280A; 6651; 6654; taxable income definition; business expenses; bad debts; business expense substantiation; home office; failure to file or pay; failure to pay estimated tax; standard deduction in excess of itemized; recordkeeping; documentation; documentation for existence of bona fide debt; reasonable cause.
Milton H. Thomas II and Priscilla Snelling Thomas T.C. Summary Opinion 2019-24 Sec. 25A; American Opportunity Tax Credit; credit received in more than four years.
Santiago Gutierrez T.C. Summary Opinion 2019-23 Sec. 2; 24; 32; 151; 152; 6662; 6664; head of household; child tax credit; earned income tax credit; exemption; dependent definition; accuracy-related penalty; reasonable cause; eligible foster child as qualifying dependent; tiebreaker rule.
Jasper J. Nzedu and Vivian A.Nzedu T.C. Summary Opinion 2019-22 162; 274; 1362; 6651; 6662; 6664; business expenses; business expense substantiation; S corporation election, termination; failure to file or pay; accuracy-related penalty; reasonable cause; no election made for S corporation; expenses claimed by more than one business.
Gerard J. McEnroe and Regina McEnroe T.C. Summary Opinion 2019-21 Sec. 72; 401; distributions from qualified plan; qualified pension plans; loan from plan; failure to repay; reinstatement of loan; hardship exception; equitable exception.
Diana Doucoure T.C. Summary Opinion 2019-20 Sec. 32; earned income tax credit; Schedule C income; proof of expenses; amount of earned income not established; recordkeeping; documentation.
Lily Hilda Soltani-Amadi and Bahman Justin Amadi T.C. Summary Opinion 2019-19 Sec. 72; 401; early distributions; qualified pension plans; first-time home purchase; exceptions from 10-percent penalty on early distributions; IRA only exception.
Rodrigo Kho and Loreta Kho T.C. Summary Opinion 2019-18 Sec. 25A; 152; 162; 167; 170; 262; 280A; 6662; 6664; American Opportunity Tax Credit; dependent definition; business expenses; depreciation; charitable contributions; personal expenses; business use of home; accuracy-related penalty; reasonable cause; foster care provider; personal vs. business expenses; foster children not qualifying relatives.
Jun Wu T.C. Summary Opinion 2019-17 Sec. 162; 165; 179; 183; 461; 6001; 6662; 6664; business expenses; losses; expensing business assets; not-for-profit activities; taxable year of deduction; records requirement, statements, and special returns; accuracy-related penalty; reasonable cause; hobby losses; gambling activity; casino records; substantiation; recordkeeping; documentation; amortization of loan origination fee.
Theodore James Zalesiak T.C. Summary Opinion 2019-16 Sec. 162; 183; 274; business expenses; not-for-profit activities; business expense substantiation; factors weighed for profit motive; hobby losses; professional gambler; commuting expenses; travel expenses.
Dwayne Perry T.C. Summary Opinion 2019-15 Sec. 165; 172; 6020; 6651; 7491; business expense deduction; net operating losses; substitute for return; failure to file or pay; burden of proof; substantiation of expenses; documentation; recordkeeping; proof of net operating loss; loss on sale of property; proof of basis.
Sunderam Krishnan T.C. Summary Opinion 2019-14 Sec. 162; 167; 170; 217; 274; 6662; 6664; business expenses; depreciation; expensing business assets; moving expenses; business expense substantiation; accuracy-related penalty; reasonable cause; documentation; recordkeeping; duplication of living expenses; tax home.
Jennifer Esteen T.C. Summary Opinion 2019-13 Sec. 162; 274; 280A; 6662; 6664; business expenses; business expense substantiation; disallowance of expenses in connection with dwelling unit; accuracy-related penalty; reasonable cause; home office; recordkeeping; documentation; education expenses; business activity at home office; reasonable cause but not good faith for avoidance of penalty.
Steven Austin Smith T.C. Summary Opinion 2019-12 Sec. 162; 195; 274; 6662; 6664; business expenses; start-up expenses; business expense substantiation; accuracy-related penalty; reasonable cause; travel expenses; means and entertainment; recordkeeping; documentation; active trade or business; commencement of business operations.
Donald Burden and Mary Torres T.C. Summary Opinion 2019-11 Sec. 162; 179; 212; 274; 280F; 6662; business expenses; expensing business assets; expenses for the production of income; business expense substantiation; listed property; accuracy-related penalty; recordkeeping; documentation; relationship of expense to business; no response to penalty; unreimbursed business expenses; minister; travel; meal and entertainment.
Sibille G. Cooney and Dominic C. Cooney T.C. Summary Opinion 2019-10 Sec. 179; 274; 280F; 6662; expensing business assets; business expense substantiation; listed assets; accuracy-related penalty; repair and maintenance expenses; failure to make proper election to expense assets; log; recordkeeping; documentation; auto expenses.
Elizabeth Jackson Simpson and Geoffrey N. Simpson T.C. Summary Opinion 2019-9 Sec. 162; 164; 170; 274; business expenses; taxes; charitable contributions; business expense substantiation; unreimbursed employee business expenses; contribution acknowledgment failed to provide dates of contributions; acknowledgment failed to specify type of gift; documentation; recordkeeping; failure to maintain log.
Joel H. Arseo T.C. Summary Opinion 2019-8 Sec. 61; 72; 165; gross income definition; excess contribution to IRA; losses; gambling income; substantiation of gambling losses; inclusion of W-2G income; pretax contribution to IRA not deductible.
Vica Technologies, LLC T.C. Summary Opinion 2019-7 Sec. 6320; 6330; 6698; hearing on filing lien notice; hearing before levy; failure to file partnership return.
Huirong Zhu and Tina X. Zhou T.C. Summary Opinion 2019-6 Sec. 162; 262; 274; 280A; 6662; 6664; business expenses; personal expenses; business expense substantiation; disallowance of expenses in connection with dwelling unit; accuracy-related penalty; reasonable cause; unreimbursed business expenses; recordkeeping; documentation; home office; expenses not paid or incurred by business.
Jim Stuart Brooks T.C. Summary Opinion 2019-5 Sec. 6015; innocent spouse relief; equitable relief; Rev. Proc. 2013-34 threshold requirements; examination of factors.
Jesus Rodriguez and Juanita Rodriguez T.C. Summary Opinion 2019-4 Sec. 24; 62; 162; 217; 6050P; 6651; 6751; child tax credit; adjusted gross income definition; business expenses; moving expenses; Form 1099-C cancellation of indebtedness; failure to file or pay; procedural requirements; child over 17; educator expense deduction; eligible educator; unreimbursed employee business expenses; substantiation; requirements for moving expense deduction; nonreceipt of Form 1099-C; compliance by IRS with supervisory approval requirement.
Rosemary McDowell and Adric McDowell T.C. Summary Opinion 2019-3 Sec. 162; 197; 274; business expenses; amortization of intangibles; business expense substantiation; connection between expenses and business; medical expenses; recordkeeping; documentation; expense of license must be amortized.
Thad Marshall Pugh T.C. Summary Opinion 2019-2 Sec. 162; 163; business expenses; interest; investment interest; legal fees; relationship of legal expenses to trade or business.
Christopher John Totten T.C. Summary Opinion 2019-1 Sec. 25D; 36; 67; 72; 162; 165; 170; 6651; residential energy credit; first-time homebuyer credit; miscellaneous itemized deductions; early distributions; business expenses; losses; charitable contributions; failure to file or pay; qualifying property for residential energy credit; substantiation of expenses; capital loss actually long-term capital gain.

 


Copyright 2019 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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