Small Business Taxes & Management

Tax Court Cases--2022


Small Business Taxes & ManagementTM--Copyright 2022, A/N Group, Inc.

 

Below is a list of the 2022 cases of the U.S. Tax Court. 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.

NOTE--The U.S. Tax Court has significantly revising its system of presenting cases and other information. Our old links (in year 2020 and prior) no longer work. However, you may search the U.S. Tax Court website at dawson.ustaxcourt.gov/ from the options Case Order Opinion select Opinion and search there by case/petitioner's name or by date or date range. You can search for cases as far back as May 1, 1986.

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

Tax Court Cases--2021
Tax Court Cases--2020
Tax Court Cases--2019
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 24, 2022

Tax Court Cases

b>None

 

Memorandum Decisions

John E. Vorreyer and Melissa D. Vorreyer, et al. (T.C. Memo. 2022-97) Sec. 162; 179; business expenses; expensing business assets; payment of expenses by shareholders; entity separate from shareholders; failure to make election to expense vehicle; no amended return filed.
William Goddard: Lee, Goddard, & Duffy, LLP (T.C. Memo. 2022-96) 6330; 6707; 6751; hearing before levy; failure to furnish infomation about reportable transactions; procedural requirements; collection due process; CDP; supervisory aproval of penalty; prior opportunity to dispute underlying tax liability; limitations period not before court.

 

Summary Opinions

None

 

Cumulative Cases - 2022

Tax Court Cases

Cory H. Smith (159 T.C. No. 3) Sec. 6103; 7121; confidentiality of returns; closing agreements; agreement valid and enforceable; waiver of right; disclosure of return information; proper delegation of authority.
Whistleblower 769-16w (159 T.C. No. 2) Sec. 7623; expenses of detection of underpayment and fraud; remand claims to whistleblower office for additional consideration; WBO.
Whistleblower 972-17w (159 T.C. No. 1) Sec. 6103; 7623; confidentiality of returns; expenses of detection of underpayment and fraud; proceeds collected but claim denied by IRS.

Michael D. Brown (158 T.C. No. 9) Sec. 6330; 7122; hearing before levy; offer in compromise; collection due process; CDP; 24-month deemed acceptance rule for offer in compromise; when offer rejected.
Angela M. Chavis (158 T.C. No. 8) Sec. 6015; 6320; 6330; innocent spouse relief; hearing on filing notice of lien; hearing before levy; collection due process; CDP; trust fund recovery penalty; TFRP; liability for TFRP not from liability on joint tax return; denial of collection alternatives; challenge of TFRP liability.
Michelle Delponte (158 T.C. No. 7) Sec. 6015; 7803; innocent spouse relief; Commissioner of Internal Revenue; IRS counsel authority to settle innocent spouse relief issue; IRS lawyer vs. usual procedures for innocent spouse relief.
Treece Financial Group (158 T.C. No. 6) Sec. 7436; Sec. 7436; determination of employment status; Voluntary Classification Settlement Program; VCSP; employee vs. independent contractor; section 530 of Revenue Act of 1978; existence of employment tax audit.
Bats Global Markets Holdings, Inc. and Subsidiaries (158 T.C. No. 5) Sec. 199; domestic production activities deduction; domestic production gross receipts; not engaged in providing customers with software for own direct use.
AptarGroup Inc. (158 T.C. No. 4> Sec. 861; income from sources within the United States; controlled foreign corporation; CFC; apportionment of interest expense; foreign tax credit limitation.
Gina C. Lewis (158 T.C. No. 3) Sec. 7430; recovery of litigation costs; definition of qualified offer; IRS position substantially justified; taxpayer's obligation to present all relevant information; IRS basis reasonable.
TBL Licensing LLC F.K.A. The Timberland Company, and Subsidiaries (A Consolidated Group) (158 T.C. No. 1) Sec. 367; 368; foreign corporations; definitions relating to corporate reorganizations; constructive transfer of intangible property to a foreign corporation in a reorganization; fair market value of property transferred; immediate recognition of gain; use of entire expected useful life of property to arrive at value.

 

Memorandum Decisions

John E. Vorreyer and Melissa D. Vorreyer, et al. (T.C. Memo. 2022-97) Sec. 162; 179; business expenses; expensing business assets; payment of expenses by shareholders; entity separate from shareholders; failure to make election to expense vehicle; no amended return filed.
William Goddard: Lee, Goddard, & Duffy, LLP (T.C. Memo. 2022-96) 6330; 6707; 6751; hearing before levy; failure to furnish infomation about reportable transactions; procedural requirements; collection due process; CDP; supervisory aproval of penalty; prior opportunity to dispute underlying tax liability; limitations period not before court.
Estate of Brett L. Clemons, Sr., Deceased, Brett Lee Clemons, Jr., Personal Representative (T.C. Memo. 2022-95) Sec. 162; 212; 901; 911; 6651; 6662; 6663; business exp0enses; expenses for the production of income; taxes of foreign countries and U.S. possessions; foreign earned income exclusion; failure to file or pay; accuracy-related penalty; fraud penalty; foreign bank account; substantiation of business expenses; no documentation for foreign tax credits; overseas living expenses; underreported income. Alan Brian Fabian (T.C. Memo. 2022-94) Sec. 301; 316; 6501; 6651; 6663; distributions of property; dividend definition; limitations on assessments and collections; failure to file or pay; fraud penalty; witness freed from disclosure prohibition; statute of limitations and fraudulent returns; plea agreemenbt; constructive dividends; dividends in excess of earnings and profits; improper disclosure of information.
Lakeisha Degourville (T.C. Memo. 2022-93) Sec. 2, 32, 61, 162, 6663, filing status; earned income credit; gross income definition; business expenses; fraud penalty; unreported income; reconstruction of income; bank deposits method; head of household filing status; requirements for obtaining earned income tax credit; substantiation of business expenses; recordkeeping; taxpayer licensed tax return preparer.
Eric D. Clarkson (T.C. Memo. 2022-92) Sec. 6330; 6673; 6702; hearing before levy; penalty for delay; penalty for frivolous returns; collection due process; Tax Court did not warn taxpayer of penalty for frivolous positions; zero income on Form 1040 tax return.
Johannes Lamprecht and Linda Lamprecht (T.C. Memo. 2022-91) Sec. 6501; 6662; 6664; 7609; limitations on assessment and collection; accuracy-related penalty; reasonable cause; special procedures for third-party summonses; qualified amended returns; issuance of summonses suspends statute of limitations.
Thomas J. Dern and Peggy M. Dern (T.C. Memo. 2022-90) Sec. 104; damage awards and sick pay; settlement wording; no indication award was for physical injury or sickness; illness caused by employer.
George Anton Remisovsky and Ellen Jones-Remisovsky (T.C. Memo. 2022-89) Sec. 6320; 6330; 6651; hearing before filing lien notice; hearing before levy; failure to file or pay; illness not reason to file return; ability to carry on other activities; illness of spouse does not excuse failure to file.
Sparta Pink Property, LLC, Spart Pink Manager, LLC, Tax Matters Partner (T.C. Memo. 2022-88) Sec. 170; 6751; charitable contributions; procedural requirements; conservation easement donation; property protected in perpetuity; donee entitled t a portion of proceeds on sale or conversion; fair market value of easement; supervisory approval of penalty; approval timely.
Jaroslaw Sek and Danuta Petrow-sek (T.C. Memo. 2022-87) Sec. 36B; premium tax credit; entitlement to credit; coverage obtained through former empployer vs. an exchange under ACA.
Alexander C. Deitch; Jonathan D. Barry and Susan S. Barry (T.C. Memo. 2022-86)Sec. 163; 707; interest deduction; transactions between partner and partnership; existence of partnership; interest vs. partnership payment.
Warner Enterprises, Inc. (T.C. Memo. 2022-85) Sec. 6751; procedural requirements; supervisory approval of penalty; issue to be raised in partnership level proceding.
Medtronic, Inc. and Consolidated Subsidiaries (T.C. Memo. 2022-84) Sec. 367; 482; foreign corporations; valuation misstatement penalty; transfer pricing; arm's length transactions; royalty payments; licenses; proper allocations.
Nnabugwu C. Eze (T.C. Memo. 2022-83) Sec. 162; 274; business expenses; business expense substantiation; vehicle expenses; documentation; Cohan rule not available; proof of places visited; proof items on receipts actually purchased.
Jamie B. Hall (T.C. Memo. 022-82) Sec. 6651; 6654; failure to file or pay; failure to pay estimated tax; unreported dividend income; capital gain income.
Charles G. Kinney (T.C. Memo. 2022-81) Sec. 162; 274; business expenses; business expense substantiation; vehicle expenses; commercial vehicle classification vs. passenger auto; car logs; documentation; recordkeepint.
Donald W. Thompson (T.C. Memo. 2022-80) Sec. 170; 6662; 6751; charitable contributions; accuracy-related penaalty; procedural requirements; conservation easement donation; protected in perpetuity; supervisory approval of penalty.
Trevor R. Pettennude (T.C. Memo. 2022-79) Sec. 6330; hearing before levy; collection due process; CDP; challenge of underlying tax liabilities; review by settlement officer.
Jennifer A. Soler (T.C. Memo. 2022-78) Sec. 6015; innocent spouse relief; knowledge of understatements; failure to review tax returns; income level; other factors.
Alejandro J. Rojas and Elena G. Rojas (T.C. Memo. 2022-77) Sec. 71; alimony; support vs. alimony; child-related contingency; other contingencies.
Noel Christopher Knight (T.C. Memo. 2022-76) Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; CDP; challenge of tax liability; sustaining collection action.
Clement Ziroli and Dawn M. Ziroli (T.C. Memo. 2022-75) Sec. 162; business expenses; disgorgement deduction; SEC action; fine or penalty; characterization of settlement.
Gregory Bernard Colbert, II and Simone P Colbert (T.C. Memo. 2022-74) Sec. 6662; 6751; accuracy-related penalty; procedural requirements; supervisory approval of penalty; dating of approval.
Thomas E. Kelly (T.C. Memo. 2022-73) Sec. 6320; 6323; 6330; 6651; hearing on filing lien notice; validity and priority of liens; hearing before levy; failure to file or pay; collection due process; CDP; partial payment installment agreement; timely Letter 3172; satisfaction of current tax obligations; reasonable abatement for failure to file.
Estate of William E. Demuth, Jr., Deceased, Donald L. Demuth, Executor (T.C. Memo. 2022-72) Sec. 2033; gross estate; inclusion in gross estate; checks written before decedent's death.
TBL Licensing LLC f.k.a. The Timberland Company, and Subsidiaries (A Consolidated Group) (T.C. Memo. 2022-71) Sec. 41; 367; 368; research credit; foreign corporations; corporate reorganizations; leave to amend; prejudice; imposition of burden on IRS.
Julian Wolpert and Estate of Eileen Wolpert, Deceased, Julian Wolpert, Executor (T.C. Memo. 2022-70) Sec. 162; 262; 274; 6662; 6751; business expenses; personal expenses; business expense substantiation; accuracy-related penalty; procedural requirements; documentation; recordkeeping; vehicle expenses; travel expenses; business purpose of trips; compensation to assistants; internet and cell phone charges; supervisory approval of penalty.
Clair R. Coluturier, Jr. (T.C. Memo. 2022-68) Sec. 4973; excess contributions to tax-favored accounts; tacit approval of position by the IRS; failure to challenge a position.
John Edward Barrington and Deanna Barriebarrington (T.C. Memo. 2022-68) Sec. 61; gross income definition; unreported income; failure to maintain records; documentation; substantiation; reconstruction of income from plea agreements.
Dino Kotride (T.C. Memo. 2022-67) Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; CDP; notice of federal tax lien; NFTL; balanced intrusivess against efficient tax collection.
Alejandro Sern (T.C. Memo. 2022-66) Sec. 6320; 6330; 7122; hearing on filing lien notice; hearing before levy; offer in compromise; collection due process; CDP; collectibility grounds; home equity; currently-not-collectible; CNC.
Louis U. Giannini and Dawn M. Giannin (T.C. Memo. 2022-65) Sec. 61; 6651; 6673; gross income definition; failure to file or pay; penalty for delay; unreported wage income; frivolous argument.
David Gilmartin (T.C. Memo. 2022-64) Sec. 61; 72; 1402; 6651; 6654; 6673; gross income definition; qualified plan distributions; net earnings from self-employment; failure to file or pay; failure to pay estimated tax; penalty for delay; failure to report wages and nonemployee compensation; retirement plan distributions as income; self-employment tax; frivolous arguments in Tax Court proceedings.
Chule Rain Walker (T.C. Memo. 2022-63) Sec. 6320; 6330; 6702; hearing on filing notice of lien; hearing before levy; frivolous tax submissions; collection due process; CDP; frivolous position in Sec. 6702(c).
Gregg Michael Kellett (T.C. Memo. 2022-62) Sec. 162; 195; business expenses; start-up expenditures; amortization of start-up expenditures; provision of services by business; lack of revenue; recordkeeping; substantiation; business purpose of expenses.
Morgan Run Partners, LLC, Overflow Marketing, LLC (T.C. Memo. 2022-61) Sec. 170; 6751; charitable contributions; procedural requirements; conservation easement; perpetuity requirement; judicial extinguishment; supervisory approval of penalty.
Ronald W. Howland, Jr. and Marilee R. Howland (T.C. Memo. 2022-60) Sec. 163; 6662; interest deduction; accuracy-related penalty; home mortgage interest; foreclosure; application of sale proceeds; loan agreement.
Arlin George Hatfield, III and Jennifer Marie Willishatfield (T.C. Memo. 2022-59) Sec. 61; 6651; 6662; gross income definition; failure to file or pay; accuracy-related penalty; unreported income; wages; summary judgment; genuine dispute of material fact; frivolous argument.
Anthony L. Phillips (T.C. Memo. 2022-58) Sec. 6320; 6330; hearing on filing notice of lien; hearing before levy; collection due process; CDP; underlying liabilities; Form 12153; challenge of liabilities during CDP hearing; settlement officer verified taxpayer's liabilities properly assessed; explanation of issues settlement officer would consider.
William E. Musselwhite, Jr. and Melissa Musselwhite (T.C. Memo. 2022-57) Sec. 735; 1221; character of gain or loss on disposition of distributed property; capital asset defined; sale of lots; no development of property; lots not inventory or stock in trade; capital loss.
Innocent O. Chinweze (T.C. Memo. 2022-56) Sec. 6320; 6330; hearing on filing notice of lien; hearing before levy; collection due process; CDP; opportunity to challenge underlying liabilities; notice of deficiency sent; appropriate steps taken by settlement officer.
Jan E. Pocock (T.C. Memo. 2022-55) Sec. 6015; innocent spouse relief; streamlined relief; satisfaction of threshold requirements and streamlined relief elements; IRS claim of hidden assets; economic hardship; abuse and physical intimidation.
Ifeoma Ezekwo (T.C. Memo. 2022-54) Sec. 7345; revocation or denial of passports in case of certain tax delinquencies; IRS correctly certified seriously delinquent tax debt; collection due process hearing not requested.
Martha L. Albrecht (T.C. Memo. 2022-53) Sec. 170; charitable contributions; substantiation requirements; deed of gift; conditions attached to gifts; contemporaneous written acknowledgment.
Genecure, L.L.C., Frank Y. Tung, Tax Matters Partner (T.C. Memo. 2022-52 Sec. 48D; 61; 162; 274; 6663; 6751; qualifying therapeutic discovery project credit; gross income definition; business expenses; business expense substantiation; fraud penalty; procedural requirements; recapture of credit; recordkeeping; documentation; Cohen rule not applied; unreported income; presumption of correctness; supervisory approval of penalty challenged.
Paul Christopher Caldwell (T.C. Memo. 2022-51) Sec. 61; 6651; gross income definition; failure to file or pay; disability benefits taxable; substitute for return; SFR.
Warren Keith Jackson and Barbara Ann Jackson (T.C. Memo. 2022-50) Sec. 6330; hearing before levy; collection due process; CDP; issue raised during telephone hearing; installment agreement rejected; failure to be current on estimated taxes.
Michael J. Rogerson (T.C. Memo. 2022-49) Sec. 469; 6662; passive activity losses; accuracy-related penalty; rental activities; material participation; businesses considered as single, overall activity; yacht rental activities; reliance on competent tax adviser.
Christian Renee Evert (T.C. Memo. 2022-48) Sec. 6501; limitations on assessment and collection; statute of limitations; period not expired when notice of deficiency mailed; taxpayer claimed Form 872, Consent to Extend the Time to Asdses Tax signed under duress.
Timothy J. Lewis (T.C. Memo. 2022-47) Sec. 7623; expenses of detection of underpayments and fraud; jurisdiction; statute does not clearly define what constitutes a determination.
Neil Wolfson (T.C. Memo. 2022-46) Sec. 6330; hearing before levy; collection due process; CDP; trust fund recovery penalty; no abuse of discretion by settlement officer; ample time to submit required documentation.
Gregory J. Podlucky and Karla S. Podlucky (T.C. Memo. 2022-45) Sec. 6015; innocent spouse relief; reason to know of deficiency; benefits received; payment of personal expenses with company funds.
Edgerton Mighty and Eulalee Mighty (T.C. Memo. 2022-44) Sec. 6320; 6330; 6751; hearing before filing lien notice; hearing before levy; procedural requirements; collection due process; CDP; prior opportunity to challenge liability; notice of deficiency sent to last known add4ess; supervisory approval of penalty; adequate time to respond.
Celia Mazze (T.C. Memo. 2022-43) Sec. 7430; recovery of litigation costs; attorney and expert witness fees; lower court requirement to follow appellate court's resolution of legal issue.
Tracy Renee Valentine (T.C. Memo. 2022-42) Sec. 61; 104; 274; 6651; gross income definition; damage awards and sick pay; business expense substantiation; failure to file or pay; determination of disability not retroactive; evidence injuries combat related; retirement distributions included in gross income; recordkeeping; documentation for expenses; reasonable cause for failure to file; diligent search for accountant
Michael T. Sestak (T.C. Memo. 2022-41) Sec. 162; 165; 6663; business expenses; losses; fraud penalty; forfeiture of property to government; ordinary and necessary business expense; forfeiture related to federal violations; unreported income; failure to report bribery proceeds; badges of fraud weighed.
Christian Sezonov and Francine M. Sezonov (T.C. Memo. 2022-40) Sec. 469; passive activity losses; real estate professionals; two rental properties; contemporaneous records; 750 hour requirement.
David Issac Bindel (T.C. Memo. 2022-39) Sec. 61; 6673; gross income definition; penalty for delay; W-2s received; claim not taxable income; lack of frivolous claims in the past.
Treece Investment Advisory Corp. (T.C. Memo. 2022-38) Sec. 7436; determination of employment status; Voluntary Classification Settlement Program; VCSP; Tax Court jurisdiction.
Todd Kohout and Lisa M. Kohout (T.C. Memo. 2022-37) Sec. 705; 6001; basis in partnership; regulations requiring records, statements, and special returns; enough bases to take passthrough losses; payment of credit cards held to be disguised distributions in the absence of records; claim of overstatement of gross receipts on original return not supported by documentation.
Douglas Mihalik and Wendi J. Mihalik (T.C. Memo. 2022-36) Sec. 132; fringe benefits; no additionl cost services; airline tickets not excludable; not taxpayer or dependent children of taxpayer; de minimis fringe benefit.
Pediatric Impressions Home Health, Inc. (T.C. Memo. 2022-35) Sec. 3401; 6651; 6662; definitions; failure to file or pay; accuracy-related penalty; employment status; employee vs. independent contractor; factors examined; safe harbor relief of section 530; failure to maintain consistency; failure to deposit penalty.
The Redi Foundation, Inc. (T.C. Memo. 2022-34) Sec. 3401; 6651; definitions; failure to file or pay; founder and officer statutory employee; dual status as employee and independent contractor; services performed for the company; reasonable cause.
Daniel Metz (T.C. Memo. 2022-33) Sec. 61; 6651; 6654; 6663; gross income definition; failure to file or pay; failure to pay estimated taxes; civil fraud penalty; reconstruction of income; bank deposits method; refusal to cooperate; satisfaction of threshold requirement for income determination; fraudulent failure to file.
Steven W. Webert and Catherine S. Webert (T.C. Memo. 2022-32) Sec. 121; exclusion of gain on sale of principal residence; use of house as principal residence; report of property on Schedule E vs. personal residence.
Continuing Life Communities Thousand Oaks LLC, spieker CLC, LLC, Tax Matters Partner (T.C. Memo. 2022-31) Sec. 446; 451; methods of accounting; general rule for taxable year of inclusion; accounting for deferred fees; method consistently applied and in compliance with GAAP.
Robert J. Norberg and Debra L. Norberg (T.C. Memo. 2022-30) Sec. 6330; hearing before levy; collection due process; CDP; request for currently not collectible status; living expenses exceeding income; Form 433-A; adjustment for expenses to local standards; monthly payment possible; taxpayer failed to justify deviation from local standards.
Shawn Stephen Salter (T.C. Memo. 2022-29) Sec. 63; 72; 6651; taxable income definition; distributions from qualified plans; failure to file or pay; early distributions; only standard deduction allowed on substitute for return.
Luke J. Middleton (T.C. Memo. 2022-28) Sec. 6330; 6672; hearing before levy; failure to collect and pay over taxes; collection due process; CDP; trust fund recovery penalty; employment tax liability; procedural steps taken by settlement officer.
Edgardo L. Villanueva (T.C. Memo. 2022-27) Sec. 172; net operating loss; NOL; failure to establish loss; failure to file amended return for year showing the loss; failure to show carryover loss not absorded in prior year.
Jason D. Golditch (T.C. Memo. 2022-26) Sec. 6330; 6673; hearing before levy; penalty for delay; collection due process; CDP.
Jeremy Edwin Porter (T.C. Memo. 2022-25) Sec. 6404; abatements; abatement of interest claim on Form 843; taxpayer's claim of IRS delay in settlement.
Jonah B. Addis (T.C. Memo. 2022-24) Sec. 6330; hearing before levy; collection due process; CDP; assertion of frivolous positions; contesting penalty for frivolous positions; opportunity to disclaim positions.
Oxbow Bend, LLC, parkway South, LLC, Tax Matters Partner (T.C. Memo. 2022-23) Sec. 6751; procedural requirements; supervisory approval for penalty; timing of initial determination of penalty.
Pickens Decorative Stone, LLC, Eco Terra 2016 Fund, LLC, Tax Matters Partner (T.C. Memo. 2022-22) SEc. 170; 6751; charitable contribution; procedural rules; conservation easement; protection of easement not protected in perpetuity; supervisory approval of penalty.
Thomas Rhea Hamilton and Edith Marie Palmer Hamilton (T.C. Memo. 2022-21) Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; CDP; upholding of filing of notice of federal tax lien; missing documentation; work of settlement officer.
Brian K. Bunton and Karen A. Bunton (T.C. Memo. 2022-20) Sec. 6330; 6751; hearing before levy; procedural requirements; collection due process; CDP; supervisory approval for penalty; challenge of underlying tax liabilities; receipt of notices of deficieny; face-to-face hearing.
Sherwin Community Painters Inc.; Robert Ward, Jr. And Swanette Triem Ward (T.C. Memo. 2022-19) Sec. 61; 162; 262; gross income definition; business expenses; personal expenses; constructive dividends; economic benefit from payments made by corporation.
Carl William Cosio (T.C. Memo. 2022-18) SEc. 6330; hearing before levy; collection due process; CDP; receipt of notice of deficiency; failure to submit requested information; eligibility for collection alternative; failure to provide financial information.
Jessica Walters (T.C. Memo. 2022-17) Sec. 183; 6662; not-for-profit activities; accuracy-related penalty; hobby losses; real estate; personal use of property; business motive.
Barry A. Hacker and Celeste Hacker (T.C. Memo. 2022-16) Sec. 61; 6651; 6662; 6663; gross income definition; failure to file or pay; accuracy-related penalty; fraud penalty; constructive dividends; payment of personal expenses by business; unreported income; unexplained deposits.
Clary Hood, Inc. (T.C. Memo. 2022-15) Sec. 162; 6662; 6664; business expenses; accuracy-related penalty; reasonable cause; C corporation; reasonable compensation; substantial increase in salary from prior; factors weighed.
John D. Lord and Belinda Lord (T.C. Memo. 2022-14) Sec. 168; 280E; depreciation; illegal sale of drugs; books and records; generally accepted accounting principles; GAAP; depreciation method not allowed for business trafficking in controlled substances.
Mohammad A. Kazmi T.C. Memo. 2022-13) Sec. 6320; 6330; 6672; hearing on filing notice of lien; hearing before levy; failure to collect and pay over taxes; collection due process; trust fund recovery penalty; responsible person; supervisory approval for penalty.
Corning Place Ohio, LLC, Corning Place Ohio Investment, LLC, Tax Matters Partner (T.C. Memo. 2022-12) Sec. 170; charitable contributions; conservation easement; failure to submit all items required to substantiate deduction; substantial compliance; summary judgment denied.
Scott Nicholas Shaddix (T.C. Memo. 2022-11) Sec. 6320; 6330; hearing on filing notice of lien; hearing before levy; collection due process; CDP; challenge of tax liability; erroneous information provided by settlement officer.
James Lee Hicks, Jr. (T.C. Memo. 2022-10) Sec. 24; 151; 152; child tax credit; personal exemptions; dependent definition; claiming children alternatively each year; order by state court; Form 8332, Release of Claim for Exemption of Child by Custodial Parent; qualifying children.
Hoops, LP, Heisley Member, Inc., Tax Matters Partner (T.C. Memo. 2022-9) Sec. 404; 461; deduction for contributions by employer to employee's trust; taxable year of deduction; deferred compensation liability; inclusion realized on sale of business; assumption of liabilities in sale; computation of gain on sale; economic performance rule.
James P. Harwood and Connie J. Harwood (T.C. Memo. 2022-8) Sec. 162; business expenses; unreimbursed employee business expenses; employer's reimbursement policy.
Larry T. Williams (T.C. Memo. 2022-7) Sec. 162; 274; 6651; 6673; business expenses; business expense substantiation; failure to file or pay; penalty for delay; recordkeeping; documentation; frivolous arguments.
Norma L. Slone, Transferee, et al. (T.C. Memo. 2022-6) Sec. 1341; 6751; 6901 claim of right; procedural requirements; transferred assets; issues before the court; transferor corporation's tax liabilities; supervisory approval; equitable recoupment.
Edmund Gerald Flynn (T.C. Memo. 2022-5) Sec. 6330; hearing before levy; collection due process; CDP; offer-in-compromise; rejection of OIC.
Estate of Anthony K. Washington, Deceased, Lenda Washington, Personal Representative (T.C. Memo. 2022-4) Sec. 6320; 6330; hearing on filing notice of lien; hearing before levy; collection due process; CDP; rejection of offer-in-compromise; OIC; taxpayer died intestate with outstanding installment agreement.
John M. Larson (T.C. Memo. 2022-3) Sec. 83; 162; property transferred in connection with performance of services; business expenses; substantial risk of forfeiture; Employee Stock Option Plan (ESOP) created; fair dealing with ESOP participants; participants not informed of rights.
Long Branch Land, LLC, Big Escambia Ventures, LLC, Tax Matters Partner T.C. Memo. 2022-2) Sec. 6751; procedural requirements; supervisory approval of penalty; timely approval of penalty.
Mohamed H. Elbasha (T.C. Memo. 2022-1) Sec. 1; 2; 162; 274; 6662; filing status; head of household; business expenses; business expense substantiation; accuracy-related penalty; ordinary and necessary expenses; living apart vs. single; expenses for profession; continuing education expenses; expenses requiring strict substantiation; lack of receipts or other documentary evidence; home office deduction; car and truck expenses; reliance on tax preparer; no testimony on preparer's expertise.

 

Summary Opinions

George C. Luna (T.C. Summary Opinion 2022-18) Sec. 162; 274; business expenses; business expense substantiation; unreimbursed business expenses; strict substantiation; contemporaneous diary or log; adequate books and records; substantiation of amount of expenses; ordinary and necessary.
Ruben H. Domdom, Jr. (T.C. Summary Opinion 2022-17) Sec. 911; 6662; foreign earned income exclusion; accuracy-related penalty; principal place of abode; claiming head of household status abode in United States; reliance on paid preparer; acted in good faith.
George W. Butterfield and Christina L. Butterfield (T.C. Summary Opinion 2022-16) Sec. 162; 274; business expenses; unreimbursed employee business expenses; strict substantiation requirements; Cohan rule; insufficient evidence. Robert L. Pressman (T.C. Summary Opinion 2022-15) Sec. 163; 6662; interest; accuracy-related penalty; home mortgage interest; substantiation of interest expense; documentation showing interest accrued or charged but record lacking if interest actually paid.
Matthew C. Elstein (T.C. Summary Opinion 2022-14) Sec. 6651; 6662; failure to file or pay; accuracy-related penalty.
Maribel Gonzalez (T.C. Summary Opinion 2022-13) Sec. 162; 274; business expenses; business expense substantiation; vehicle logs; business nature of trips; per diem vs. actual expenses; self-employed; recordkeeping; documentation.
Lionel E. Larochelle and Molly B. Larochelle (T.C. Summary Opinion 2022-12) Sec. 6662; accuacy-related penalty; IRA distribution; nonreceipt of Form 1099-R; reasonable cause.
Mark Ryan Pedersen (T.C. Summary Opinion 2022-11) Sec. 162; 274; business expenses; business expense substantiation; unreimbursed employee business expenses; reimbursed by employer; employment temporary vs. indefinite; travel expenses; credit card statements not sufficient documentation for meals.
Alfred Christopher Morgan (T.C. Summary Opinion 2022-10) Sec. 61; 911; 6651; gross income definition; foreign earned income; failure to file or pay; exclusion of income as contractor in Saudi Arabia
Raul Romana and Maria Corazon Romana (T.C. Summary Opinion 2022-9) Sec. 162; 6662; business expeenses; accuracy-related penalty; unreimbursed employee business expenses; deductions for clothing, tools and phone; Cohan rule; reasonable basis for estimating expenses; reasonable cause to avoid penalty; reliance on preparer.
Brandon Paul Spencer (T.C. Summary Opinion 2022-8) Sec. 162; 274; business expenses; business expense substantiation; Cohan rule; contract labor expenses; car and truck expenses; strict substantiation; credible and noncredible testimony.
Jihad Y. Ibrahim (T.C. Summary Opinion 2022-7) Sec. 215; 6662; alimony; accuracy-related penalty; property settlement vs. alimony; maintenance.
Nicole Harrison (T.C. Summary Opinion 2022-6) Sec. 162; 170; 274; 469; 6651; business expenses; charitable contributions; business expense substantiation; passive activity losses; failure to file or pay; unreimbursed employee business expenses; documentation; charitable contribution substantiation; recordkeeping; Schedule C expenses; trade or business activity; rental activities and active participation requirement.
Suzanne M. Scholz (T.C. Summary Opinion 2022-5) Sec. 162; 170A; 274; 6662; business expenses; definition of charitable contribution; business expense substantiation; accuracy-related penalty; employee business expense; substantiation; recordkeeping; documentation; noncash contributions; qualification as charitable contributions; recordkeeping; documentation; contemporaneous mileage log; purpose of travel expenses.
Cheri L. Rau (T.C. Summary Opinion 2022-4) Sec. 162; 170; 274; business expenses; charitable contributions; business expense substantiation; vehicle expenses; mileage logs; documentation; recordkeeping; contemporaneous logs; meal expenses; noncash contributions; condition of property donated.
Aaron J. Sonntag and Stefanie R. Gilman (T.C. Summary Opinion 2022-3) Sec. 162; 274; business expenses; business expense substantiation; recordkeeping; documentation.
Babajide Muhammed Ola-Buraimo (T.C. Summary Opinion 2022-2) Sec. 152; 6330; dependent definition; hearing before levy; collection due process; qualifying child; alternative to collection action; failure to provide financial information; request for currently not collectible status; CNC.
Sharon A. Struble (T.C. Summary Opinion 2022-1) Sec. 162; 262; 274; business expenses; personal living expenses; business expense substantiation; unreimbursed employee expenses; recordkeeping; documentation; business purpose for travel; military service; ADFS; nonreimbursable vs. reimbursable.

 


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--Last Update 09/24/22