Small Business Taxes & Management

Tax Court Cases--2020


Small Business Taxes & ManagementTM--Copyright 2020, A/N Group, Inc.

 

Below is a list of the 2020 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 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--2019
Tax Court Cases--2018
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 April 4, 2020

Tax Court Cases

None

 

Memorandum Decisions

Ronald M. Goldberg T.C. Memo. 2020-38 Sec. 6404; abatements; abatement of interest; Form 4549, Income Tax Examination Changes; not binding contract with IRS; challenge of underlying tax liability; prior opportunity.

 

Summary Opinions

None

 

Cumulative Cases - 2020

Tax Court Cases

Joseph Thomas Lander and Kimberly W. Lander 154 T.C. No. 7 Sec. 6212; 6330; notice of deficiency; hearing before levy; collection due process; audit reconsideration; opportunity to dispute tax liability; mailing of notice of deficiency.
Sandra M. Conrad 154 T.C. No. 6 Sec. 72; distributions from qualified plans; early distributions; penalty; equal protection clause of Constitution; age 59-1/2 exception to penalty.
David J. Chadwick 154 T.C. No. 5 Sec. 6672; 6751; failure to collect and pay over taxes; procedural requirements; trust fund recovery penalty; TFRP; penalty requiring supervisory approval; currently not collectible status; CNC.
Laidlaw's Harley Davidson Sales, Inc. 154 T.C. No. 4 Sec. 6330; 6751; hearing before levy; procedural requirements; collection due process; supervisory approval of penalty; approval made late.
Adams Challenge (UK) Limited 154 T.C. No. 3 Sec. 638; 882; 894; continental shelf areas; tax on foreign corporations connected with U.S. business; income affected by treaty; vessel chartered by domestic corporation for work in U.S. waters; effectively connected with U.S. business; income not exempt.
Charles L. Frost 154 T.C. No. 2 Sec. 162; 274; 704; 6662; 6751; business expenses; business expense substantiation; partners' distributive share; accuracy-related penalty; procedural requirements; travel expenses; recordkeeping; documentation; contemporaneous records; basis in partnership; documentation for loan; failure to meet supervisory approval of penalty documentation.
Belair Woods, LLC, Effingham Managers, LLC, Tax Matters Partner 154 T.C. No. 1 Sec. 6751; procedural requirements; supervisory approval of penalty; penalties formally communicated to taxpayer; supervisor at time Civil Penalty Approval Form signed.

 

Memorandum Decisions

Ronald M. Goldberg T.C. Memo. 2020-38 Sec. 6404; abatements; abatement of interest; Form 4549, Income Tax Examination Changes; not binding contract with IRS; challenge of underlying tax liability; prior opportunity.
Sean McNamee T.C. Memo. 2020-37 Sec. 6330; 6694; hearing before levy; understatement of taxpayer's liablity by return preparer; preparer penalties; challenge of liability; final administrative determination not absolute prerequisite to assessment of penalty.
Valerie R. Bishop T.C. Memo. 2020-36 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; delinquent returns; financial documentation not supplied.
Walter Nicklaus Cline T.C. Memo. 2020-35 Sec. 7623; expenses of detection of underpayment and fraud; whistleblower; no action taken, no proceeds collected.
Mark Alan Staples T.C. Memo. 2020-34 Sec. 6512; limitations in case of petition to Tax Court; cash basis taxpayers; offset of Social Security Disability Insurance benefits by Federal Employee Retirement System disability annuity.
Sara M. Thomas and David A. Thomas T.C. Memo. 2020-33 Sec. 6213; 7502; Tax Court petition; last known address; timely mailing as timely filing; postage meter date disregarded, USPS postmark legible; jurisdiction.
Do S. Wong T.C. Memo. 2020-32 Se. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; challenge of underlying liability; audit reconsideration not sought; failure to valid collection alternative proposal.
Mark Y. Liu and Ginger Y. Bian, Deceased, Mark Y. Liu, Surviving Spouse T.C. Memo. 2020-31 Sec. 1366; 7481; pass-through of items to shareholders; date when tax court decision becomes final; Tax Court jurisdiction on overpayment of interest; distributive shares of S corporation income reported as qualified dividends; release of erroneous filed federal tax lien.
Sun River Financial Trust, Jay A. Greek, Trustee T.C. Memo. 2020-30 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; delinquent returns filed; frivolous return.
Charles Stuart Pulcine T.C. Memo. 2020-29 Sec. 7623; expenses of detection of underpayment and fraud; threshold conditions not met; failure to file Form 211, Application for Award for Original Information; condition for award rectified by delinquent taxpayer.
Pierson M. Grieve T.C. Memo. 2020-28 Sec. 2501; 2502; 2503; 2702; 7491; imposition of gift tax; rate of tax; taxable gifts; special valuation rules in case of transfers of interests in trusts; burden of proof; valuation of gifts to trusts; discount for marketability; discount for lack of control.
Dung T. Le and Nghia T. Tran T.C. Memo. 2020-27 Sec. 61; 162; 6662; 6663; Tax Court Rule 39; gross income definition; business expenses; accuracy-related penalty; civil fraud penalty; recordkeeping; documentation; substantiation; failure to keep records of income; reconstruction of income; bank deposits method; badges of fraud.
Rock Bordelon and Torie Bordelon T.C. Memo. 2020-26 Sec. 465; 704; deductions limited to amount at risk; partners' distributive share; loan basis; liability for loan; protection against loss; guarantee; recourse to taxpayer.
Alvin E. Keels, Sr. T.C. Memo. 2020-25 Sec. 162; 409A; 6651; 6662; business expenses; inclusion in gross income of deferred compensation under nonqualified deferred compensation plans; failure to file or pay; accuracy-related penalty; documentation; substantiation; recordkeeping; expenses deducted twice; IRS failed to meet burden of proof.
Oakhill Woods, LLC, Effingham Managers, LLC, Tax Matters Partner T.C. Memo. 2020-24 Sec. 170; charitable contributions; conservation easement; compliance with reporting requirements; cost basis required; reliance on CPA.
Richard Essner T.C. Memo. 2020-23 Sec. 61; 6662; 6664; 7605; gross income definition; accuracy-related penalty; reasonable cause; time and place of examination; IRA distributions taxable income; inherited IRA; proof of investment in IRA; two examinations for same year; unnecessary examination; AUR; automatic underreporter program.
Railroad Holdings, LLC, Railroad Land Manager, LLC, Tax Matters Partner T.C. Memo. 2020-22 Sec. 170; charitable contributions; contribution of conservation easement; perpetual restriction requirement; allocation of proceeds on extinguishment.
Nathaniel A. Carter and Stella C. Carter; Ralph G. Evans T.C. Memo. 2020-21 Sec. 170; 6751; charitable contributions; procedural requirements; contribution of conservation easement; perpetual restriction requirement; supervisory approval of penalty before imposition of penalties; 30-day letters not included.
Christian Bernd Alber T.C. Memo. 2020-20 Sec. 7623; expenses of detection of underpayments and fraud; rejection of whistleblower's claim; no violation of law found by Whistleblower's Office.
Hubert W. Chang T.C. Memo. 2020-19 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; jurisdiction by Tax Court; untimely requests for collection due process hearings; taxpayer's testimony.
Northside Carting, Inc. T.C. Memo. 2020-18 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; unpaid employment taxes; failure to submit information for offer-in-compromise; installment agreement; not in compliance with current tax obligations.
Lon B. Issacson T.C. Memo. 2020-17 Sec. 61; 6663; gross income definition; fraud penalty; contingency fee; year taxable; judicial estoppel; badges of fraud.
Lori J. Manroe; Robert D. Manroe T.C. Memo. 2020-16 Sec. 6230; 6662; additional administrative provisions; accuracy-related penalty; jurisdiction of penalties at partnership level.
Ugorji Timothy Wilson Onyeani T.C. Memo. 2020-15 Sec. 212; 446; 6001; expenses for the production of income; methods of accounting; required records; corporation not separate entity; alter ego; reconstruction of income; unreported income.
Dean Lee Christensen T.C. Memo. 2020-14 Sec. 162; 262; 274; business expenses; personal expenses; business expense substantiation; business reason for travel; travel expenses for wholly owned company; ordinary and necessary test; travel logs inadequate; recordkeeping; documentation; capital contribution not employee business expense.
Edward Anthony Purvis and Maureen Helena Purvis T.C. Memo. 2020-13 Sec. 6663; 6664; 6751; civil fraud; reasonable cause; procedural requirements; supervisory approval of penalty; penalties approved before formal communication to taxpayers; badges of fraud; failure to provide complete information to tax advisor.
Moises A. Aviles T.C. Memo. 2020-12 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; challenge to underlying tax liability; currently not collectible or installment agreement requested; sufficient income.
Mei Productions T.C. Memo. 2020-11 Sec. 6213; 6320; 6330; 6651; notice of deficiency; hearing on filing lien notice; hearing before levy; failure to file or pay; collection due process; preconditions for making assessment.
Daniel Alan Near and Denise Frances Mayhugh T.C. Memo. 2020-10 Sec. 61; 162; 262; 274; gross income definition; business expenses; personal expenses; business expense substantiation; business vs. personal expenses; travel including family members; business purpose; unreimbursed business expenses; "necessary" requirement.
Glenn David Cuthbertson a.k.a. David Cuthbertson and Pamela Cuthbertson T.C. Memo. 2020-9 Sec. 165; 446; 453; 6662; losses; methods of accounting; installment method; accuracy-related penalty; losses on disposition of golf course; benefits and burdens of ownership transferred; economic reality test for abandonment loss; closed and completed transaction.
Alta V Limited Partnership, Transferee, et al. T.C. Memo. 2020-8 Sec. 6651; 6662; 6901; failure to file or pay; accuracy-related penalty; transferred assets; transferee liabilities; statute of limitations.
Wifredo E. Rivera and Maria T. Rivera T.C. Memo. 2020-7 Sec. 61; 162; 274; 6662; gross income definition; business expenses; business expense substantiation; accuracy-related penalty; unreported income; income reconstructed; bank deposits method; challenge of method; recordkeeping; documentation; expenses disallowed; auto expenses, gifts, meal expense disallowed.
Michael J. Seely and Nancy B. Seely T.C. Memo. 2020-6 Sec. 7502; petitions to Tax Court; lack of jurisdiction; timely mailing as timely filing; intervening holiday.
Ed Thielking, Inc. T.C. Memo. 2020-5 Sec. 401; 601; 7476; qualified pension plans; exemption from tax on corporations; declaratory judgments relating to certain qualified pension plans; Employee Stock Ownership Plan; ESOP; Employee Stock Ownership Trust; ESOT; qualification of plan; operational failures; ineligible participants; acceptance of contributions in excess of limitations; qualification in form.
Jason Hommel T.C. Memo. 2020-4 Sec. 165; 446; 471; 6001; 6651; 6662; 6751; losses; methods of accounting; general rule for inventories; records requirement, statements, special returns; failure to file or pay; procedural requirements; unreported income; bank deposits method to reconstruct income; adjustment of inventory for theft loss; lack of records; substantiation of cash transactions.
Chad Loube and Dana M. Loube T.C. Memo. 2020-3 Sec. 170; charitable contributions; appraisal requirement; missing information on Form 8283; basis and acquisition date; failure to meet appraisal requirements.
Tribune Media Company f.k.a. Tribune Company & Affiliates v. Commissioner; Chicago Baseball Holdings, LLC, Northside Entertainment Holdings, LLC, f.k.a. Ricketts Acquisition, LLC, Tax Matters Partner T.C. Memo. 2020-2 Sec. 6751; procedural requirements; supervisor approval of penalty; timing of requirement of supervisory approval.
Clark J. Gebman and Rebecca Gebman T.C. Memo. 2020-1 Sec. 72; 165; 172; 6015; 6662; 6673; distributions from qualified plans; losses; net operating losses; innocent spouse relief; accuracy-related penalty; penalty for delay; premature withdrawals from IRA; Schedule E deductions not substantiated; NOLs denied for lack of substantiation; frivolous arguments.

 

Summary Opinions

Edwin D. Benton and Sheila E. Benton T.C. Summary Opinion 2020-12 Sec. 72; 162; 274; 280A; 6651; distributions from qualified plans; business expenses; business expense substantiation; business use of home; failure to file or pay; residential property used as business location; substantiation requirements for vehicles; penalty for early distribuiton from retirement account; recordkeeping; documentation; taxpayer's testimony regarding purchases.
Friday O. James T.C. Summary Opinion 2020-11 Sec. 6320; 6330; 6701; hearing on filing lien notice; hearing before levy; penalties for aiding and abetting underpayment of tax liabilities; erroneous claims by tax preparer.
James H. Dunlap and Eileen M. Dunlap T.C. Summary Opinion 2020-10 Sec. 409A; 1401; inclusion in gross income of deferred compensation under nonqualified deferred compensation plans; rate of tax; self-employment taxes; post-retirement payments based on taxpayer's prior labor; earned in prior years.
Claudia Yanira Magana T.C. Summary Opinion 2020-9 Sec. 2; 25A; head of household; American Opportunity Tax Credit; no record of tuition; substantiation; documentation; qualifying child.
Hakeem Abubakr and Sharmila Kassim T.C. Summary Opinion 2020-8 Sec. 162; 6662; business expenses; accuracy-related penalty; travel expenses; substantiation; documentation; recordkeeping.
Reliable Computer Services, Inc.; Patrick Lind and Mary Beth Blotnick Lind T.C. Summary Opinion 2020-7 Sec. 162; 274; 316; 446; 6662; business expenses; business expense substantiation; dividend definition; methods of accounting; accuracy-related penalty; cost of goods sold not substantiated; expenses as ordinary and necessary; recordkeeping; documentation; distributions from C corporation; proof of earnings and profits; accounting for inventory; accrual basis taxpayer; good faith reliance on tax preparer.
Jemar Y. Purdie T.C. Summary Opinion 2020-6 Sec. 72; 6662; qualified plan distributions; accuracy-related penalty; failure to introduce evidence.
Tracey Rene Merrell and Christopher L. Merrell T.C. Summary Opinion 2020-5 Sec. 72; 86; qualified plan distributions; Social Security benefits; premature distribution from IRA; lump sum election under Social Security; exception to penalty for disabled.
Atul Gambhir and Rashi Gambhir T.C. Summary Opinion 2020-4 Sec. 62; 162; 274; 280A; adjusted gross income definition; business expenses; business expense substantiation; disallowance of expenses in connection with dwelling unit; home office; principal place of business; administrative duties; statutory employee.
Suresh Anisetti T.C. Summary Opinion 2020-3 Sec. 6330; hearing before levy; collection due process; challenge of liability; failure to provide information; health excuse not documented.
James Gordon Primus T.C. Summary Opinion 2020-2 Sec. 162; 195; 212; business expenses; start-up costs; expense for the production of income; preparation of land to produce agricultural commodities; commencement of trade or business.
Janet Mioko Stovall and David Dunson T.C. Summary Opinion 2020-1 Sec. 162; 274; 280A; 6662; business expenses; business expense substantiation; home office; accuracy-related penalty; vehicle expenses; contemporaneous mileage log; business purpose of trip; business connection for travel expenses; business purpose of home expenses.

 


Copyright 2020 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 04/04/20