Small Business Taxes & Management

Tax Court Cases--2024


Small Business Taxes & ManagementTM--Copyright 2024, A/N Group, Inc.

 

Below is a list of the 2024 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 revised 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--2023
Tax Court Cases--2022
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 May 11, 2024

Tax Court Cases

None

 

Memorandum Decisions

Lisa M. Holley (T.C. Memo. 2024-54) Sec. 6330; hearing before levy; collection due process; CDP; settlement officer followed required procedures in sustaining Notice of Federal Tax Lien; NFTL.

 

Summary Opinions

Justin M. Maderia (T.C. Summary Opinion 2024-5) Sec. 6662; accuracy-related penalty; failure to report dividends; constructive dividends from closely held corporation; personal expenses paid by corporation or unsubstantiated expenditures.

 

Cumulative Cases - 2024

Tax Court Cases

Raju J. Mukhi (162 T.C. No. 8) Sec. 6038; 6677; 6330; information reporting with respect to certain foreign corporations; failure to file information with respect to certain foreign trusts; hearing before levy; collection due process; CDP; penalties not fines; eight amendment excessive fines clause; protecting revenue and reimbursement of government of investigation; IRS authority under Section 6038.
Mohamed K. Abdo and Fardowsa J. Farah (162 T.C. No. 7) Sec. 7508A: authority to postpone certain deadlines; automatic postponement; Covid-19 pandemic; non-pension-related time-sensitive act.
Valley PLark Ranch, LLC, Reed Oppenheimer, Tax Matters Partner (162 T.C. No. 6) Sec. 170; charitable contribution; qualified conservation easement; protected in perpetuity; statute procedurally invalid under the Administrative Procedure Act and that the deed therefore need not comply with its requirements.
Paul Andrew Frutiger (162 T.C. No. 5) Sec. 6015; innocent spouse relief; jurisdiction; 90-day deadline for filing petition; statute clear.
Clair R. Couturier (162 T.C. No. 4) Sec. 4973; 6501; excess IRA contributions; limitation on assessment and collection; no retroactive application of Sec. 6501 penalty.
23rd Chelsea Associates, L.L.C., Related 23rd Chelsea Associates, L.L.C., Tax Matters Partner (162 T.C. No 3) Sec. 42; low income housing credit; financing with tax-exempt bonds; inclusion of financing costs in eligible basis.
Sydney Ann Chaney Thomas (162 T.C. No. 2) Sec. 6015 innocent spouse relief; failure to show economic hardship; enjoyment of vacations while tax liabilities not discharged.
Douglas Dodson and Rebecca Dodson (162 T.C. No. 1) Sec. 6213; petition to Tax Court; deadline for filing petition on deficiency notice incorrect; second notice sent; date on first notice governs filing deadline.

 

Memorandum Decisions

Lisa M. Holley (T.C. Memo. 2024-54) Sec. 6330; hearing before levy; collection due process; CDP; settlement officer followed required procedures in sustaining Notice of Federal Tax Lien; NFTL.
Elizabeth White (T.C. Memo. 2024-53) Sec.6330; hearing before levy; collection due process; CDP; no liability challenge by taxpayer; settlement officer followed procedure.
Buckelew Farm, LLC f.k.a. Big K Farms LLC, Big K LLC, Tax Matters Partner (T.C. Memo. 2024-52) (T.C. Memo. 2024-52) Sec. 170; 6662; charitable contributions; accuracy-related penalty; conservation easement; gift in perpetuity; proportionate share of proceeds on extinguishment; gross valuation misstatement.
Estate of Randy Glassman, Deceased, Steven Glassman, Personal Representative, and Steven Glassman (T.C. Memo. 2024-51) Sec. 6751; procedural requirements; supervisory approval of penalty; challenge to signator due to complexity of audit.
Piccirc, LLC, Pimlico, LLC, A Partner Other Than the Tax Matters Partne (T.C. Memo. 2024-50) Sec. 707; 6662; transactions between partner and partnership; accuracy-related penalty; disguised sales; structured distressed debt investment transaction; multiple partnerships.
Joseph Belcik, et al. (T.C. Memo. 2024-49) Sec. 167 274; 1402; 6651; 6654; 6673; depreciation; business expense substantiation; net earnings from self-employment; failure to file or pay; failure to pay estimated taxes; penalty for delay; recordkeeping; documentation; maintaining frivolous positions; basis in warehouse not established.
Richard A. Shaw, Jr. (T.C. Memo. 2024-48) Sec. 6440; hearing before levy; collection due process; CDP; deadline to file petition; equitable tolling; 30-day filing period.
Michael C. Giambrone; William W. Giambrone and Michele L. Giambrone (T.C. Memo. 2024-47) Sec. 165; 6662; losses; accuracy-related penalty; theft loss; failure to show loss incurred; sale of stock.
John A. Hartmann (T.C. Memo. 2024-46) Sec. 6330; hearing before levy; collection due process; CDP; denial of collection alternatives; requirements met; financially able to make monthly payments; information not provided by taxpayer.
Robert Y. Diaz and Brittany L. Diaz (T.C. Memo. 2024-45) Sec. 911; 7121; foreign earned income exclusion; closing agreements; closing agreement valid; questionable signatures; handwriting experts.
Keith M. Phillip (T.C. Memo. 2024-44) Sec. 6212; notice of deficiency; last known address; failure of IRS to prove proper mailing to taxpayer; jurisdiction of Tax Court.
Christopher S. Pascucci and Silvana B. Pascucci (T.C. Memo. 2024-43) Sec. 165; theft loss; Ponzi scheme; decline in value in variable life insurance policies; assets held in accounts of others.
Estate of Roman J. Finnegan, Deceased, Kevin C. Tankersley, Personal Representative, and Lynnette Finnegan, et al. (T.C. Memo. 2024-42) Sec. 104; damage awards and sick pay; claim that post traumatic stress disorder (PTSD) is a physical injury; no reference in settlement agreement to injury.
Burt Kroner (T.C. Memo. 2024-41) Sec. 6662; 6664; accuracy-related penalty; reasonable cause exception; reliance on professional advice; no evidence regarding nature of advice; lack of information presented to professional; reliance on advice.
Valerie Stephens (T.C. Memo. 2024-40) Sec. 6330; hearing before levy; collection due process; CDP; petition to review determination of collection; 30-day filing period; failure to attach copy of notice of intention to dispute.
Robert A. Zienkowski (T.C. Memo. 2024-39) Sec. 6320; 6440; notice of federal tax lien; hearing before levy; collection due process; CDP; rejection of proposed installment agreement.
Amgen Inc. & Subsidiaries (T.C. Memo. 2024-38) Src 6751; procedural requirements; supervisory approval for penalties; whether supervisor had discretion over penalties; timing of issuance of penalties.
Merrie P. Wycoff (T.C. Memo. 2024-37) Sec. 6330; 6673; hearing before levy; penalty for delay; collection due process; CDP; failure to propose collection alterntives; frivolous filings maintained despite warnings; levy proposed.
Khuram Shahzad Gondal and Arooj Asmat (T.C. Memo. 2024-36) Sec. 61; 6663: gross income definition; civil fraud penalty; unreported income; constructive dividends; business purpose of payments; proof of fraudulent intent.
Savannah Shoals, LLC, Green Creek Resources, LLC, Tax Matters Partner (T.C. Memo. 2024-35) Sec. 170; 6662; charitable contributions; accuracy-related penalty; conservation easement; substantiation requirements; aplprasisal relied on for other information; gross valuation misstatement.
Sunil S. Patel and Laurie McAnally Patel, et al. (T.C. Memo. 2024-34) Sec. 162; 831; business expenses; tax on insurance companies; captive insurance companies; election invalid; payments not insurance premiums.
Rodney A. Taylor (T.C> Memo. 2024-33) Sec. 6330; 6671; 6672; hearing before levy; penalty for delay; failure to collect and pay over taxes; collection due process; CDP; trust fund recovery penalty; responsible person; CEO and sole shareholder; in charge of disbursing funds; funds disbursed to shareholder.
Midwest Medical Aesthetics Center; Kathleen M. Stegman (T.C. Memo. 2024-32) Sec. 61; 162; 6651; 6663; gross income definition; business expenses; failure to file or pay; civil fraud penalty; recordkeeping; substantiation; documentation; cost of goods sold overstated; failure to document certain business expenses; failure to show purchase of assets where depreciation claimed; failure to show business purpose of asset.
George McDonald White (T.C. Memo. 2024-31) Sec. 6330; hearing before levy; collection due process; CDP; failure to file tax returns; collection alternatives denied; not current with estimated taxes; failure to rectify issues; collection action sustained.
Lance C. Standifird (T.C. Memo. 2024-30) Sec. 6651; 6654; failure to file or pay; failure to pay estimated taxes; jurisdiction to determine income tax and self-employment tax deficiencies with respect to partnership level proceeding.
Anthony Aulisio, Jr. (T.C. Memo. 2024-29) Sec. 162; 164; 170, 172, business expenses for taxes, dedution, charitable contributions; net operating loss carryforward; income amounts not corroborated; interest and real estate taxes not substantiated; substantiation of mortgage payments; substantiation of real estate taxes; proof of charitable contributions; failure to prove net operating carryforward loss available.
Ramesh C. Kapur and Chanda Kapur (T.C. Memo. 2024-28) Sec. 41; research tax credits; use of sampling methodology.
Charles Scott and Linder Scott (T.C. Memo. 2024-24) Sec. 104; damage awards and sick pay; Civil Service Retirement System disability payment; amount not attributable to injury or sickness related to time in armed forces.
Zofia Kraszewska, Petitioner, and Simon P. Ricks, Jr., Intervenor (T.C. Memo. 2024-26) Sec. 6015 innocent spouse relief; accuracy related penalty; know or reason to know of understatement; intervenor's concealment of finances from spouse; equitable relief.
Oconee Landing Property, LLC, Oconee Landing Investors, LLC, Tax Matters Partner (T.C. Memo. 2024-25) Sec. 170; charitable contributions; requirements of contribution with return; requirement to attach qualified appraisal; conservation easement; failure to exercise ordinary business care; proof of computation of basis of property.
James Elbert Aldridge, Jr. and Shirley Lorraine Aldridge (T.C. Memo. 2024-24) Sec. 61; 641; 6663; gross income definition; imposition of tax; fraud penalty; six trusts; unreported income; trusts as shams; economic substance; relationship between taxpayer and trust; fraudulent intent.
Donald Ecret and Kristen Ecret (T.C. Memo. 2024-23) Sec. 86; Social Security benefits; social security disability benefits and social security benefits; maximum nontazable amount; average current earnings; ACE.
Whistleblower 14376-16W (T.C. Memo. 2024-22) Sec. 7623; expenses of detection of underpayment and fraud; denial of award; target filed delinquent and amended returns; no bad faith on Whistleblower Office.
Acqis Technology, Inc. and Consolidated Subsidiary (T.C. Memo. 2024-21) Sec. 61; 6501; 6662; gross income definition; limitations on assessment and collection; accuracy-related penalty; settlement for patent infringement; inclusion of award in income; contributions to capital; purchase agreement of shares sham transaction; intention of other party; transaction deemed sham.
Susan D. Turner (T.C. Memo. 2024-20) Sec. 2, 32; 152; head of household; earned income credit; dependent definition; qualifying child; principal place of abode for more than half the tax year.
Christopher Crumedy (T.C. Memo. 2024-19) Sec. 6330; 6702; hearing before levy; penalty for frivolous returns; challenge of liability; failure to receive notice of deficiency; failure to raise issue during hearing.
Joseph Anthony Martino, Jr. (T.C. Memo. 2024-18) Sec. 71; alimony; payments not alimony but property settlement; installment payments on property settlement; documents created over 10-year period.
Justin C. Cloar (T.C. Memo. 2024-17) Sec. 6330; hearing before lefy; collection due process; CDP; rejection of offer in compromise; claim of zero monthly earnings; IRS arguement that taxpayer had potential to be employed again.
Lonnie Wayne Hubbard (T.C. Memo. 2024-16) Sec. 61; 6651; gross income definition; failure to file or pay; contructive receipt from individual retirement account; IRA account forfeited to government; constructive receipt of funds by receiving an economic benefit; taxpayer should have known forfeiture of IRA would produce income.
Christopher Meyer, Transferee (T.C. Memo. 2024-15) Sec. 6901; transferred assets; stock sale reclassified by IRS as asset sale and liquidating distributing: IRS precluded by statute of limitations; judicially estopped.
Paulette Thompson and Johnnie L. Thompson v. Commissioner; Paulette Thompson (T.C. Memo. 2024-14) Sec. 61; 162; 6651; 6654; gross income definition; business exenses; failure to file or pay; failure to pay estimated tax; cancellation of debt income; COD; unreported income; agricultural program payment income; business purpose of expenses.
Bernard T.Swift, Jr. and Kathy L. Swift (T.C. Memo. 2024-13) Sec. 162; 831; 6662; business expenses; tax on insurance companies; accuracy-related penalty; microcaptive insurance companies; deductions for legal and professional expenses.
Cynthia L. Huffman and Estate of Chet S. Huffman, Deceased, Cynthia L. Huffman, Executor, et al. (T.C. Memo. 2024-12) Sec. 6662; accuracy-related penalty, gift tax; sale of shares in a corporation to son from exercised options; reliance on professional; reasonable cause.
Essel Eyewear, Inc. (T.C. Memo. 2024-11) Sec. 162; 6662; business expenses; accuracy-related penalty; reconstruction of income; failure to maintain books and records; deemed admissions; substantiation; recordkeeping; documentation.
Stephanie Murrin (T.C. Memo. 2024-10) Sec. 6501; limitations on assessments and collections; fraudulent return by preparer with intent to evade tax; statute of limitations not applicable.
Michael W. Aubin and Kerry A. Aubin (T.C. Memo. 2024-9); Sec. 7121; closing agreements; enforceability; delegation of power by IRS.
Estate of Thomas H. Fry, Deceased, Ruth M. Fry, Personal Representative, and Ruth M. Fry (T.C. Memo. 2024-8) Sec. 1366; 6662; pass-through to shareholders; accuracy-related p0enalty; transfers to S corporation; interests in equity; sufficient stock basis for deducting flow-through losses.
Saul Bradley (T.C. Memo. 2024-7) Sec. 6330; hearing before levy; collection due process; proof of mailing of deficiency notice; currently not collectile (CNC) status denied.
Clair R. Couturier, Jr. (T.C. Memo. 2024-6) Sec. 4973; 6751; tax on excess contributions; procedural requirements; excess contribution "penalty" was a tax and not a penalty; supervisory approval not needed for additional tax.
Christopher R. Pangelina (T.C. Memo. 2024-5) Sec. 6020; 6651; 6662; returns prepared by IRS; failure to file or pay; accuracy-related penalty; substitute for return.
William M. Hefley and Aimee J. Hefley (T.C . Memo. 2024-4) Sec. 162; 6662; 6751; business expenses; accuracy-related penalty; procedural requirements; approval of supervisor for penalty; unreported income not addressed by taxpayers; substantiation of deductions.
William E. Frazier and Mary A. Frazier, et al. (T.C. Memo. 2024-3) Sec. 162; 6214; 6651; 6662; business expenses; determinations by Tax Court; failure to file or pay; accuracy-related penalty; evidence of actual source of payment; related entities; issue raised on brief; lack of warning to taxpayers; reasonable cause for failure to file; threshold for accuracy-related penalty not met.
Terence J. Keating and Janet D. Keating, et al. (T.C. Memo. 2024-2) Sec. 162; 301; 316; 831; 953; 6662; business expensess; corporate distributions of property; what is a dividend; tax on insurance companies; insurance income; aaccuracy-related penalty; microcaptive arrangement; qualification as insurance company; distributions as dividend incoem.
Jesse Alvarado and Estate of Maria De Lourdes Velasquez, Deceased, Jesse Alvarado, Special Administrator (T.C. Memo. 2024-1) Sec. 61; 6651; 6662; 6664; gross income definition; failure o file or pay; accuracy-related penalty; civil fraud penalty; recordkeeping; documentation; cost of goods sold estimated; reasonable cause exception.

 

Summary Opinions

Justin M. Maderia (T.C. Summary Opinion 2024-5) Sec. 6662; accuracy-related penalty; failure to report dividends; constructive dividends from closely held corporation; personal expenses paid by corporation or unsubstantiated expenditures.
Caren Kohl, a.k.a. Caren Rein (T.C. Summary Opinion 2024-4) Sec. 72; 6651; distributions from qualified plans; failure to file or pay; early distributions; distribution not reported.
Paul Anthony Steward (T.C. Summary Opinion 2024-3) Sec. 162; 274; 6651; 6662; business expenses; business expense substantiation; failure to file or pay; accuracy related penalty; records destroyed in fire; reconstruction; ordinary and necessary.
Patricia S. Chappell (T.C. Summary Opinion 2024-2) Sec. 162; 274; 6662; business exenses; business expense substantiation; accuracy-related penalty; recordkeeping; documentation; Cohan rule; automobile use; standard mileage rate.
Scott Paulson and Melissa Lowery Paulson (T.C. Summary Opinion 2024-1) Sec. 162; 6662; business expenses; accuracy-related penalty; documentation; recordkeeping; substantiation; summary judgment.

 


Copyright 2024 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 05/11/24