Small Business Taxes & Management

Tax Court Cases--2018


Small Business Taxes & ManagementTM--Copyright 2018, A/N Group, Inc.

 

Below is a list of the 2018 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--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 22, 2018

Tax Court Cases

Sidney O'Kagu 151 T.C. No. 5 Sec. 911; foreign earned income exclusion; U.S. government employee for federal tax purposes.
Barry M. Smith and Rochelle Smith 151 T.C. No. 5 Sec. 1; 316; 956; 962; 1366; tax rates; dividend definition; investment of earnings in U.S. property; election by individuals to be subject to tax at corporate rate; pass-through of items to shareholders; controlled foreign corporation; CFC; cancellation of account receivable owed by S corporation was constructive dividend.

 

Memorandum Decisions

Brian D. Ray and Betsy Ray T.C. Memo. 2018-160 Sec. 446; 6651; 6662; 6664; methods of accounting; failure to file or pay; accuracy-related penalty; reasonable cause; tax-exempt organization; payments to founders' children; failure of children to report income; unreported income.
Belair Woods, LLC, Effingham Managers, LLC, Tax Matters Partner T.C. Memo. 2018-159 Sec. 170; charitable contributions; conservation easement; failure to comply with statutory requirements; failure to attach appraisal summary; failure to disclose cost or adjusted basis.
Jonathan Zuhovitzky and Esther Zuhovitzky T.C. Memo. 2018-158 Sec. 6013; joint returns; nonresident alien spouse election; failure to make election; substantial compliance and the duty of consistency; change their representation about thier joint-filing eligibility.
Brian Benson, Petitioner, and Dannielle Welch-Benson, Intervenor T.C. Memo. 2018-157 Sec. 6015; innocent spouse relief; joint liability not related to tax understatement; knowledge intervenor could or would not pay liability.
Annette Faye Neitzer, Petitioner and Richard J. Arnoldussen, Intervenor T.C. Memo. 2018-156 Sec. 6015; innocent spouse relief; knowledge of liability; knowledge intervenor could pay; involvement in preparation of return.
Ruben De Los Santos and Martha De Los Santos T.C. Memo. 2018-155 Sec. 61; gross income definition; split-dollar life insurance arrangement; S corporation made contributions to employee welfare plan for shareholder/employer.
John A. Hartman T.C. Memo. 2018-154 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; rejection of collection alternative; failure to make estimated tax payments; failure to submit financial information.
Jeff M. Potter and Marsha R. Potter; Potter Sales, Inc. T.C. Memo. 2018-153 Sec. 183; 1402; 6662; 6664; not-for-profit activities; net earnings from self-employment; accuracy-related penalty; reasonable cause; prize money from rodeo activity; cost of goods sold; nominee; termination payment to individual subject to self-employment tax; termination payment based on prior year's commissions; reliance on CPA.

 

Summary Opinions

Chevy Frankel T.C. Summary Opinion 2018-45 Sec. 163; interest expenses; mortgage interest; equitable owner of property; obligation to pay mortgage; agreement between spouses; property rights.
James E. Lawson and Christiane D. Lawson T.C. Summary Opinion 2018-44 Sec. 162; 163; 1366; 6662; 6664; business expenses; interest expenses; pass-through items to shareholders; accuracy-related penalty; reasonable cause; mortgage interest; real property taxes; insurance premiums; Schedule E expenses; bases in S corporation; bona fide loans to S corporation.
Richard Bryan Jackson and Nora Irene Jackson T.C. Summary Opinion 2018-43 Sec. 61; 108; gross income definition; cancellation of debt income; insolvency exclusion; requirement to make buy-back payments to substitute for retirement account.

 

Cumulative Cases - 2018

Tax Court Cases

Sidney O'Kagu 151 T.C. No. 5 Sec. 911; foreign earned income exclusion; U.S. government employee for federal tax purposes.
Barry M. Smith and Rochelle Smith 151 T.C. No. 5 Sec. 1; 316; 956; 962; 1366; tax rates; dividend definition; investment of earnings in U.S. property; election by individuals to be subject to tax at corporate rate; pass-through of items to shareholders; controlled foreign corporation; CFC; cancellation of account receivable owed by S corporation was constructive dividend.
Roberto Toso and Marcela Salman 151 T.C. No. 4 Sec. 6501; limitations on collections and assessments; six-year limitations period; omission of at least 25 percent of gross income; noncurrent year gains from passive foreign investment companies (PFIC) not counted as gross income.
Harbor Lofts Associates, Crowninshield Corporation, Tax Matters Partner 151 T.C. No. 3 Sec. 170; charitable contributions; facade; conservation easement; lessee of property; fee interest.
Ya Global Investments, LP, et al. 151 T.C. No. 2 Sec. 1446; 1461; 6226; 6231; withholding of tax on foreign partners share of effectively connected income; liability for withheld tax; alternatives to payment of imputed underpayment by partnership; notice of proceedings and adjustments; partnership-level proceeding; tax within scope of partnership items; jurisdiction of Tax Court.
Benton Williams, Jr. 151 T.C. No. 1 Sec. 6673; 6751; penalty for delay; procedural requirements; supervisory approval rule not applicable.

Dynamo Holdings Limited Partnership, et al. 150 T.C. No. 10 Sec. 7491; burden of proof; burden of production for penalties and additions to tax; penalty at partnership level; partnership vs. individual; supervisory approval of penalties.
Scott T. Blackburn 150 T.C. No. 9 Sec. 6751; procedural requirements; missing signature of IRS supervisorfor penalty; required record of signature present.
Karl F. Simonsen et ux. 150 T.C. No. 8 Sec. 165; 1001; 6662; losses; amount of and recognition of gain or loss; accuracy-related penalty; short sale of home; discharge of nonrecourse debt; amount realized greater than loss basis; neither gain nor loss; cancellation of debt income.
Celia Mazzei; Angelo L. Massei; Mary E. Mazzei 150 T.C. No. 7 Sec. 408A; 4973; 6651; Roth IRAs; excess contributions to tax-favored accounts; failure to file or pay; correct owner of foreign sales corporation; FSC; income taxable to taxpayers; penalty on excess contributions.
Alice Perkins et vir 150 T.C. No. 6 Sec. 1; 6651; 6662; 6751; income tax imposed; failure to file or pay; accuracy-related penalty; procedural requirements; Native Americans; gravel mined on tribal lands not exempt; imposition of penalty not properly approved.
Friends of the Benedictines in the Holy Land, Inc. 150 T.C. No. 5 Sec. 7430; attorney's fees; litigation costs; administrative costs; prevailing party; costs incurred; concession by IRS; IRS substantially justified.
Melissa Coffey Hulett a.k.a. Melissa Coffey, et al. 150 T.C. No. 4 Sec. 6501; limitations on assessments and collections; Virgin Islands; bona fide resident; deficiency notice untimely.
SIH Partners LLLP, Explorer Partner Corporation, Tax Matters Partner 150 T.C. No. 3 Sec. 1; 951; 956; tax imposed; amounts included in income of U.S. shareholders; investment earnings in U.S. property; controlled foreign corporations; CFCs; guaranteed loans made to U.S. persons; qualified dividend income.
Kenneth William Kasper 150 T.C. No. 2 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower awards; error by IRS Whistleblower Office; harmless error; whistleblower's information.
M. Rafizadeh 150 T.C. No. 1 Sec. 6038D; 6501; information with respect to foreign financial assets; limitations on assessment and collection; scope of Secv. 6501(e)(1)(A)(ii); six-year period of limitations; omission from gross income.

 

Memorandum Decisions

Brian D. Ray and Betsy Ray T.C. Memo. 2018-160 Sec. 446; 6651; 6662; 6664; methods of accounting; failure to file or pay; accuracy-related penalty; reasonable cause; tax-exempt organization; payments to founders' children; failure of children to report income; unreported income.
Belair Woods, LLC, Effingham Managers, LLC, Tax Matters Partner T.C. Memo. 2018-159 Sec. 170; charitable contributions; conservation easement; failure to comply with statutory requirements; failure to attach appraisal summary; failure to disclose cost or adjusted basis.
Jonathan Zuhovitzky and Esther Zuhovitzky T.C. Memo. 2018-158 Sec. 6013; joint returns; nonresident alien spouse election; failure to make election; substantial compliance and the duty of consistency; change their representation about thier joint-filing eligibility.
Brian Benson, Petitioner, and Dannielle Welch-Benson, Intervenor T.C. Memo. 2018-157 Sec. 6015; innocent spouse relief; joint liability not related to tax understatement; knowledge intervenor could or would not pay liability.
Annette Faye Neitzer, Petitioner and Richard J. Arnoldussen, Intervenor T.C. Memo. 2018-156 Sec. 6015; innocent spouse relief; knowledge of liability; knowledge intervenor could pay; involvement in preparation of return.
Ruben De Los Santos and Martha De Los Santos T.C. Memo. 2018-155 Sec. 61; gross income definition; split-dollar life insurance arrangement; S corporation made contributions to employee welfare plan for shareholder/employer.
John A. Hartman T.C. Memo. 2018-154 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; rejection of collection alternative; failure to make estimated tax payments; failure to submit financial information.
Jeff M. Potter and Marsha R. Potter; Potter Sales, Inc. T.C. Memo. 2018-153 Sec. 183; 1402; 6662; 6664; not-for-profit activities; net earnings from self-employment; accuracy-related penalty; reasonable cause; prize money from rodeo activity; cost of goods sold; nominee; termination payment to individual subject to self-employment tax; termination payment based on prior year's commissions; reliance on CPA.
Mitsubishi Cement Corporation & Subsidiaries, A Delaware Corporation T.C. Memo. 2018-152 Sec. 613; percentage depletion; cement; sales to controlled group; proportionate profits method; average prices per ton paid by nontrolled purchasers.
Kim Ence T.C. Memo. 2018-151 Sec. 165; losses; worthless investment; year of worthlessness; proof of worthlessness.
Chad Henderson and Sharon Henderson T.C. Memo. 2018-150 Sec. 6330; hearing before levy; collection due process; notice of deficiency; last known address; opportunity to challenge.
Brian H. McLane T.C. Memo. 2018-149 Sec. 6213; 6330; 6512; determinations by Tax Court; hearing before levy; limitations in case of petition to Tax Court; collection due process; jurisdiction; notice of federal tax lien; NFTL.
Robert Birdsong and William H. Birdsong T.C. Memo. 2018-148 Sec. 469; 6662; passive activity losses; accuracy-related penalty; real estate professional; material participation; passive activity limitation; 750-hour requirement; documentation of hours worked.
Jeffrey B. Yapp and Tamara A. Yapp T.C. Memo. 2018-147 Sec. 162; 195; 6662; 6664; business expenses; start-up expenses; accuracy-related penalty; reasonable cause; documentation; recordkeeping; substantiation; not yet begun business; start-up expenditures.
Champions Retreat Golf Founders, LLC., Riverwood Land, LLC., Tax Matters Partner T.C. Memo. 2018-146 Sec. 170; charitable contributions; qualified conservation contribution; purpose requirement; easement.
Catherine J. Clay T.C. Memo. 2018-145 Sec. 61; 67; 86; 105; 451; gross income definition; miscellaneous itemized deductions; Social Security benefits; amounts received under accident and health plans; taxable year of inclusions; payment of disability premiums; claim-of-right doctrine.
Paul T. Venable II T.C. Memo. 2018-144 Sec. 6330; hearing before levy; collection due process; receipt of notice of deficiency; frivolous arguments.
Andrew Mitchell Berry and Sara Berry; Ronald Gene Berry and Linda Kathryn Berry T.C. Memo. 2018-143 Sec. 61; 162; 274; 280A; 6662; 6664; gross income definition; business expenses; business expense substantiation; disallowance of expenses in connection with dwelling unit; accuracy-related penalty; reasonable cause; home office; vehicle expenses; auto and truck; proof of loan repayment as income; cash bank deposits; bona-fide loan; substantiation of cost of goods sold; documentation; recordkeeping; vehicle log; exclusive use of portion of residence; calculation of portion of office for business.
Michael McAvey and Kathleen McAvey T.C. Memo. 2018-142 Sec. 6330; 7122; hearing before levy; offer-in-compromise; collection due process; reasonable collection potential; RCP; collateral agreement; abuse of discretion.
Lyndha Elayne Evensen T.C. Memo. 2018-141 Sec. 165; losses; theft loss; ponzi scheme investment; proof of theft loss; proof of investment; safe harbor relief; theft loss for unpaid compensation for services.
Daniel Smethers T.C. Memo. 2018-140 Sec. 108; 6651; cancellation of debt income; failure to file or pay; COD; Forms 1099-C; insolvency claim; gross income; substitute for return.
Katherine Marte Kopstad T.C. Memo. 2018-139 Sec. 6330; 6331; 6651; hearing before levy; levy and distraint; failure to file or pay; reasonable cause for failure to file; collection due process; procedural requirement.
Larry W. Macdonald T.C. Memo. 2018-138 Sec. 61; 72; 6651; 6662; 6664; 6673; gross income definition; retirement distributions taxable; failure to file or pay; accuracy-related penalty; reasonable cause; penalty for delay; frivolous arguments; frivolous return penalty.
Robert Forlizzo and Judith Ingram T.C. Memo. 2018-137 Sec. 165; losses; interest in partnership; proof of worthless; net loss vs. property value.
Scott A. Householder and Debra A. Householder T.C. Memo. 2018-136 Sec. 162; 165; 183; 469; 6662; 6664; 6751; business expenses; losses; not-for-profit activities; passive activity losses; accuracy-related penalty; reasonable cause; procedural requirements; profit intent lacking; horse-raising activity; proof of material participation in activity; day-to-day operations; supervisory approval of penalty; reliance on professional.
Louis S. Shuman and Sandra Shuman T.C. Memo. 2018-135 Sec. 165; 6214; 6330; casualty loss; determinations by Tax Court; hearing before levy; collection due process; casualty loss deduction carryover; loss on sale of personal residence; jurisdiction; failure to show credits available.
William Mark Scott T.C. Memo. 2018-134 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower awards; right to award; claim denied; IRS took no action on information provided; no proceeds received.
William Mark Scott T.C. Memo. 2018-133 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower awards; right to award; claim denied; IRS took no action on information provided; no proceeds received.
Raghvendra Singh and Kiran Rawat T.C. Memo. 2018-132 Sec. 162; 163; 164; 274; 6751; business expenses; interest expenses; taxes; business expense substantiation; procedural requirements; deduction for cost of goods sold; home mortgage interest; real estate taxes; recordkeeping; documentation; supervisory approval of penalties; failure to provide Form 1098 for mortgage interest; linking of real estate taxes with property; cost of goods sold; car and truck expenses; other losses.
Pacific Management Group, BSC Leasing, Inc., Tax Matters Partner et al. T.C. Memo. 2018-131 Sec. 162; 301; 316; business expenses; distributions of property; dividend defined; ordinary and necessary; management fees paid to C corporation shareholders; disguised dividends; assignment of income.
Amas Canzoni T.C. Memo. 2018-130 Sec. 61; 6651; gross income definition; failure to file or pay; gambling winnings.
Terry L. Yaryan and Dorothy H. Yaryan T.C. Memo. 2018-129 Sec. 166; 172; 6651; 6662; 6751; bad debts; net operating losses; failure to file or pay; accuracy-related penalty; procedural requirements; NOL; bona fide debt; business vs. nonbusiness bad debt; supervisory approval of penalty.
Kathy Bietsas T.C. Memo. 2018-128 Sec. 6304; 6330; 6672; 6751; fair tax collection practices; hearing before levy; failure to collect and pay over taxes; procedural requirements; collection due process; trust fund recovery penalty; TFRP; business installment agreement; collection of TFRPs during payment of same taxes; simultaneous collection.
Martha G. Smith and George S. lakner et al. T.C. Memo. 2018-127 Sec. 61; 104; 162; 172; 274; 469; 6651; 6662; 6664; gross income definition; damage awards and sick pay; business expenses; net operating loss; business expense substantiation; passive activity losses; failure to file or pay; accuracy-related penalty; reasonable cause; reconstruction of income; bank deposits method; litigation settlement not excludable; physical injuries; adequate books and records; recordkeeping; documentation; rental real estate losses; real estate professional; NOL not allowed; substantiation.
Daniel Imperator T.C. Memo. 2018-126 Sec. 61; 162; 274; 280A; 6651; 6662; 6664; gross income definition; business expenses; business expense substantiation; home office expenses; failure to file or pay; accuracy-related penalty; reasonable cause; unreported income; reconstruction of income; bank deposits method; recordkeeping; documentation; auto expenses; mileage or travel logs; ordinary and necessary.
Ira J. Blair and Mary L. Blair T.C. Memo. 2018-125 Sec. 6011; general requirements of return; electronic return processed by IRS; undated paper copy prepared later not shown as correct.
Luis Palafox and Hilda Arellano T.C. Memo. 2018-124 Sec. 36B; 61; advance premium tax credit; gross income definition; APTC; income greater than 400 percent of federal poverty level; ineligible for APTC; Form 8962 not attached to return.
Marilyn Letitia Randall T.C. Memo. 2018-123 Sec. 6330; hearing before levy; collection due process; reasonable collection potential; installment agreement rejected by taxpayer; extension of time to resolve.
Joanna Kane T.C. Memo. 2018-122 Sec. 6330; 6672; 6751; hearing before levy; failure to collect and pay over taxes; procedural requirements; collection due process; trust fund recovery penalty; TFRP; responsible person; check-signing authority; authorized approval in writing of penalty.
Illinois Tool Works Inc. & Subsidiaries T.C. Memo. 2018-121 Sec. 301; 312; 316; property distributions; effect on earnings and profits; dividend definition; bona fide debt between entities; return of capital; sufficient basis in subsidiary.
Damon R. Becnel T.C. Memo. 2018-120 Sec. 162; 274; 6751; business expenses; business expense substantiation; procedural requirements; unsubstantiated yacht expenses; entertainment facility; ordinary and necessary; relationship to business; approval of penalties by examiner's supervisor.
Terry Jay Grant and Twila Rose Grant T.C. Memo. 2018-119 Sec. 36B; 61; advance premium tax credit; gross income definition; social security benefits includable in income; failure to provide Form 8962 with return; not eligible for advance premium tax credit; income limit.
Whistleblower 7208-17W T.C. Memo. 2018-118 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower awards; whistleblower not allowed to press his claim anonymously.
Estelle C. Grainger T.C. Memo. 2018-117 Sec. 170; charitable contributions; substantiation of noncash charitable contributions; similar items group required; appraisal requirement; signature of official of donee organization on From 8283.
Kimberly S. Nix T.C. Memo. 2018-116 Sec. 183; 262; 6662; 6664; not-for-profit activities; personal expenses; accuracy-related penalty; reasonable cause; hobby losses; Mary Kay consultant; all nine factors against taxpayer; record of time and effort spent on the activity; deduction claimed for personal expenses.
Rick E. Jacobsen T.C. Memo. 2018-115 Sec. 6015; innocent spouse relief; embezzled income of ex-spouse; actual knowledge; different results for second year.
Inman Partners, RCB Investments, LLC, Tax Matters Partner T.C. Memo. 2018-114 Sec/ 702; 706; 6231; 6501; Tax Court Rule 122; partner's distributive share; taxable years of partner and partnership; notice of proceedings and adjustments; limitations on assessments and collections; extensions of individual returns for partnership items; Son-of-Boss; Form 872-I; consent to extend limitations; applicability to partnership items.
Daniel A. Colon T.C. Memo. 2018-113 Sec. 6330; 6672; hearing before levy; failure to collect and pay over taxes; collection due process; trust fund recovery penalty; TFRP; responsible person; willful person.
Miguel A. Jusino and Elizabeth H. Excurra T.C. Memo. 2018-112 Sec. 24; 32; 152; child credit; earned income credit; dependent definition; children did not live with taxpayers for more than half year; children adopted by maternal aunt; aunt provided primary financial support.
Darrell Archer T.C. Memo. 2018-111 Sec. 162; 170; 262; 274; 280A; 469; 6651; 6662; 6664; business expenses; charitable contributions; personal expenses; business expense substantiation; business use of home; passive activity losses; failure to file or pay; accuracy-related penalty; reasonable cause; reporting requirements for charitable contributions; recordkeeping; documentation; deductions disallowed for contract labor, home office, legal, vehicle expenses; rental property expenses; late filing penalty; business purpose of expenses.
Martin W. Washburn, Jr. T.C. Memo. 2018-110 Sec. 162; 165; business expenses; losses; payments for restitution for fraud not deductible as expenses or losses; restitution payments as ordinary and necessary.
Paul O. Martin and Cynthia M. Montes Martin T.C. Memo. 2018-109 Sec. 162; 274; 280A; 469; 6751; business expenses; business expense substantiation; business use of home; passive activity losses; procedural requirements; travel relationship to business not shown; documentation; recordkeeping; expenses related to rental property not substantiated in lease; expenses disallowed with respect to use of property by related party; material participation; real estate professional; IRS supervisor's approval not obtained for penalty.
Mark E. Balocco and Patricia A. Balocco T.C. Memo. 2018-108 Sec. 162; 274; 280F; 469; business expenses; business expense substantiation; listed property; passive activity losses; use of private airplane for business; ordinary and necessary; flight logs; material participation in activity; real estate professional; rental real estate losses; logs; times not specified for which property; guesstimates.
Magloire K. Ayissi-Etoh and Katrina D. Sharpe T.C. Memo. 2018-107 Sec. 61; 111; 162; 170; 183; 6662; 6664; gross income definition; recovery of tax benefit items; business expenses; charitable contributions; not-for-profit activities; accuracy-related penalty; reasonable cause; hobby losses; wages with no income or employment tax withheld; state tax refund; charity not recognized by IRS; failure to supply documentation for Schedule C activity; intent to make a profit.
Robert Manashi and Nahrin Manashi T.C. Memo. 2018-106 Sec. 631; 6501; gross income definition; limitation on assessment and collection; unreported income; six-year statute of limitations; adequate disclosure.
Craig P. Mowry and Cricket U. Mowry T.C. Memo. 2018-105 Sec. 165; 167; 1361; 1362; 6651; business expenses; depreciation; S corporation definition; S corporation election, revocation, termination; failure to file or pay; proof depreciable property used in a trade or business; income from S corporation included in shareholder's income; disproportionate distributions; S election not terminated; ownership of stock.
Estate of Travis L. Sanders, Deceased, Thomas S. Hogan, Jr., Personal Representative, Petitioner T.C. Memo. 2018-104 Sec. 162; 932; 6501; 6651; 6654; business expenses; U.S. and Virgin Islands income tax; limitations on assessment and collection; failure to file or pay; failure to pay estimated tax; bona fide resident of U.S. Virgin Islands; professional advice.
Mohammad Najafpir T.C. Memo. 2018-103 Sec. 61; 280A; 6651; 6662; 6751; gross income definition; business use of home; failure to file or pay; accuracy-related penalty; procedural requirements; reconstruction of income; bank analysis method; garage to store records; inability to find reliable accountant as excuse for filing late.
Marc White and Kelly White T.C. Memo. 2018-102 Sec. 61; 162; 7701; gross income definition; business expenses; definitiions; partnership or sole proprietorship; factors considered; no distribution of net profits; other parties acted more like sole proprietors; mixing of business and personal accounts.
Gregory Raifman and Susan Raifman T.C. Memo. 2018-101 Sec. 165; 6662; 6664; 6751; losses; accuracy-related penalty; reasonable cause; procedural requirements; theft loss; Derivium; asset monetization strategy; secured lending fund notes; criminal intent of principal; failure to secure independent tax advice; taxpayer should have suspected benefits not true.
Roy E. Hahn and Linda G. Montgomery T.C. Memo. 2018-100 Sec. 165; losses; Custom Adjustable Rate Debt Structure transaction; CARDS; economic substance; nontax business objective.
Michael Rosendale and Tamara D. Rosendale T.C. Memo. 2018-99 Sec. 6330; 6672; 6751; hearing before levy; failure to collect and pay over taxes; procedural requirements; sufficient net income; currently not collectible status; CNC; partial pay installment agreement; compliance with current tax obligations.
Edgar G.E. Morgan T.C. Memo. 2018-98 Sec. 6330; hearing before levy; collection due process; verification of notice of deficiency; carryforward credit balance; no receipt of amended return.
L. Donald Guess T.C. Memo. 2018-97 Sec. 6501; 6663; 6751; limitations on assessment and collection; fraud penalty; procedural requirements; failure to show fraud penalties approved by supervisor; statute of limitations open as a result of fraud; purported charitable contribution of stock
Endeavor Partners Fund, LLCX, Delta Currency Trading, LLC, Tax Matters Partner, et al. T.C. Memo. 2018-96 Sec. 165; 6751; losses; procedural requirements; losses from Currency Option Investment Strategy, Partnership Option Portfolio Securities; Personal Investment Corp. tax shelters; personal approval of accuracy-related or fraud penalties by supervisor.
Gerald Nelson T.C. Memo. 2018-95 Sec. 85; unemployment compensation.
Michael Amelsberg and Christina Amelsberg T.C. Memo. 2018-94 Sec. 61; 162; 172; 6651; gross income definition; business expenses; net operating loss; failure to file or pay; unreported income; bank deposits method; unreported income from stock sales; no establishment of basis in stock sold; cost of goods sold, rent, certain other expenses disallowed.
Kimberly R. Hale T.C. Memo. 2018-93 Sec. 6015; innocent spouse relief; economic hardship; available resources; reporting of insurance proceeds on Form 8857 (Request for Innocent Spouse Relief).
Val Lanes Recreation Center Corporation T.C. Memo. 2018-92 Sec. 401; 501; qualified pension plans; exempt corporations and trusts; abuse of discretion by IRS; retroactive revocation of favorable determination letter; employee stock ownership plan; ESOP; employee stock ownership trust; ESOT; timely adoption of plan amendments.
James R. Brown and Opal Freeman T.C. Memo. 2018-91 Sec. 7121; Tax Court Rule 41; closing agreements; no agreement reached; IRS motion for amendment to answer.
Edgar Perry and Isa Perry T.C. Memo. 2018-90 Sec. 61; 164; 280A; gross income definition; taxes; disallowance of certain expenses in connection with business use of home; rental of second home to relatives not established; proof of payment of property tax bills.
Gary Gaskin and Jessie Gaskin T.C. Memo. 2018-89 Sec. 6663; 6664; fraud penalty; definitions and special rules; fraud penalty computed on original return not amended return filed after indictment for fraud.
Shane V. Robison and Robin S. Robinson T.C. Memo. 2018-88 Sec. 183; 469; not for profit activities; passive activity losses; hobby losses; material participation; objective of making a profit; operated ranching activity in a business-like manner, failure to show material partcipation in the activity.
Hampton Software Development, LLC T.C. Memo. 2018-87 Sec. 3401; definitions; employee vs. independent contractor; dispute of notice of determination; sec. 530 of the Revenue Act of 1978.
Reserve Mechanical Corp. F.K.A. Reserve Casualty Corp. T.C. Memo. 2018-86 Sec. 501; 881; 953; special insurance companies; tax on income of foreign corporations not connected with United States business; insurance income; FDAP; fixed or determinable annual or periodical income; insurance license issed by overseas territory; not operating as insurance company; no legitimate purpose for policies issued.
Jesse M. Loughman and Desa C. Loughman T.C. Memo. 2018-85 Sec. 162; 280E; business expenses; illegal sale of drugs; medical marijuana business; deduction for wages disallowed.
Estate of Richard F. Cahill, Deceased, Patick Cahill, Executor T.C. Memo. 2018-84 Sec. 61; 2036; 2038; 2512; 2703; gross income definition; transfers with retained life estate; revocable transfers; valuation of gifts; certain rights and restrictions; split dollar life insurance; cash surrender value; special valuation rules.
Laurel Alterman and William A. Gibson T.C. Memo. 2018-83 Sec. 162; 280E; 6662; 6664; 6751; business expenses; expenses in connection with the illegal sale of drugs; accuracy-related penalty; reasonable cause; procedural requirements; medical marijuana dispensary; cost of goods sold; sale of non-marijuana merchandise not separate; failure to properly brief; Cohan rule; lack of records; supervisory approval of penalty.
Jon K. Palsgaard and Kimberly A. Kelly T.C. Memo. 2018-82 Sec. 86; 104; social security benefits; damage awards and sick pay; Social Security Disability Insurance benefits includable in income; SSDI; benefits based on contributions and length of service; SSDI not health insurance plan.
Ronald A. Caselli T.C. Memo. 2018-81 Sec. 45B; 1363; credit for social security taxes with respect to tip income; effect of election on corporation; election not claiming FICA tip credit; S corporation.
Sky M. Lucas T.C. Memo. 2018-80 Sec. 162; 212; 262; business expenses; expenses for the production of income; personal expenses; legal and professional fees related to divorce; origin of the claim; claim related to marriage.
Raghvendra Singh and Kiran Rawat T.C. Memo. 2018-79 Sec. 162; 163; 6662; business expenses; interest; accuracy-related penalty; substantiation of business expenses; recordkeeping; documentation; Form 1098 insufficient to support interest deduction; ownership of property; business losses; proof of involvement in business.
James N. Gaunt and Lillian Gaunt T.C. Memo. 2018-78 Sec. 162; 165; 172; 179; 274; business expenses; losses; net operating loss; expensing business assets; business expense substantiation; legal and professional expenses; auto and truck expenses; vehicle expense; contract labor; travel expenses; substantiation; documentation; recordkeeping; theft loss; value of property stolen; appraisal; basis in expensed property; proof of net operating loss, explanation.
Joseph C. Gallagher T.C. Memo. 2018-77 Sec. 6330; 6751; 7122; hearing before levy; procedural requirements; offer-in-compromise; collection due process; trust fund recovery penalty; TFRP; jurisdiction; determination of penalty signed by Group Manager; calculation of reasonable collection potential; RCP.
Donald R. Golan and Sheila E. Golan T.C. Memo. 2018-76 Sec. 46; 168; 465; 469; 6662; 6664; amount of credit; depreciation; at-risk rules; passive activity losses; accuracy-relatively penalty; reasonable cause; energy credit; solar equipment; special depreciation allowance; basis in property; material participation rule; 100 hours; reliance on advice of return preparer.
Slawomir J. Fiedziuszko and Alicia M. Fiedziuszko T.C. Memo. 2018-75 Sec. 61; 162; 170; 213; 274; 6662; 6664; gross income definition; business expenses; charitable contributions; medical expenses; business expense substantiation; accuracy-related penalty; reasonable cause; unreported pension income; statutory employee; intention to have independent contractor status; documentation; recordkeeping; unsubstantiated expenses related to supervised weight-loss program.
David B. Greenberg, et al. T.C. Memo. 2018-74 Sec. 165; 701; 6212; 6231; 6751; losses; partners not partnership subject to tax; notice of deficiency; notice of proceedings and adjustments; procedural requirements; worthless intangible property; evidence of loss; sham partnerships; Son-of-BOSS; deficiency notices timely mailed; missing TEFRA election; supervisory approval for gross valuation misstatement.
David J. Jarrett T.C. Memo. 2018-73 Sec. 6320; 6330; 6501; 6672; 6751; hearing on filing lien notice; hearing before levy; limitations on collections and assessments; failure to collect and pay over taxes; procedural requirements; collection due process; trust fund recovery penalty; TFRP; last known address; supervisory approval of penalty.
Yasmin Azam and Muhammad Ayub Azam T.C. Memo. 2018-72 Sec. 61; 72; 162; 170; 274; 1001; 1222; 6651; 6662; 6751; gross income definition; early distributions; business expenses; charitable contributions; determination of gain or loss; terms relating to capital gains and losses; failure to file or pay; procedural requirements; business expense substantiation; unreported income; failure to report state tax refund; rollover fee on retirement plan account nontaxable administrative fee not taxable distribution; unsubstantiated vehicle and meal and entertainment expenses; inadequate charitable contribution receipts; failure to substantiate capital loss carryover; failure by the IRS to include in the record evidence of supervisory approval for accuracy-related penalty.
Sanford Solny T.C. Memo. 2018-71 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; notice of federal tax lien; NFTL; request for collection alternative.
Sarwat-Ben R. Benjamin and Rehan Rabadi T.C. Memo. 2018-70 Sec. 162; 170; 217; 6662; business expenses; charitable contributions; moving expenses; accuracy-related penalty; substantiation; required time at new location; temporary nature of absences from tax home; recordkeeping; documentation.
Joseph C. Becker and Marcy Grace Castro T.C. Memo. 2018-69 Sec. 61; 162; 167; 274; 453; 6663; 6751; gross income defnition; business expenses; depreciation; business expense substantiation; installment sales; fraud penalty; procedural requirements; unreported income; inadequate records; reconstruction of income; failure to report income from installment sale; cost of goods sold deduction; documentation; recordkeeping; approval of penalties by supervisor.
Bradford J. Sarvak T.C. Memo. 2018-68 Sec. 166; 1368; 6662; 6664; bad debts; S corporation distributions; accuracy-related penalty; reasonable cause; bona fide debt; proof of worthlessness; S corporation distributions in excess of basis.
Cecile Barker T.C. Memo. 2018-67 Sec. 162; 172; 6651; business expenses; net operating losses; failure to file or pay; flowthrough of net operating losses; evidence of losses; evidence of waiver of carryback period; trade or business requirement for passthrough entity.
Full-Circle Staffing, LLC, Watchman Investment Trust, Financial & Tax Services, Inc., Trustee, Tax Matters Partner, et al. T.C. Memo. 2018-66 Sec. 6229; 6501; 6662; 6664; 6751; 7701; period of limitations for assessments; limitation on assessment and collection; accuracy-related penalty; reasonable cause; procedural requirements; definitions; sham trust disregarded; income taxable to creators; written extension period for limitations period; income omission in excess 25 percent; final partnership administrative adjustment; FPAA; control over entity; no independent trustee; not liable for accuracy-related penalty; unsophisticated taxpayers.
Triumph Mixed Use Investments III, LLC, Fox Ridge Investments, LLC, Tax Matters Partner T.C. Memo. 2018-65 Sec. 61; 165; 166; 170; 1402; 6221; 6662; 6664; gross income definition; losses; bad debt losses; charitable contributions; net earnings from self employment; determination at partnership level; accuracy-related penalty; reasonable cause; notice of final partnership administrative adjustment; FPAA; long-term capital loss; transfer of property to city for development plan approval not charitable contribution; establishment of basis in property.
RB-1 Investment Partners, Erick Reinhart, Tax Matters Partner T.C. Memo. 2018-64 Sec. 6226; 6662; 6664; alternative to payment of imputed underpayment by partnership; accuracy-related penalty; reasonable cause; reliance on professional advice; tax shelter promoter; no opinion by accounting firm; gross valuation misstatement penalty.
Harlan Wax et ux. T.C. Memo. 2018-63 Sec. 162; 274; 6662; business expenses; business expense substantiation; accuracy-related penalty; recharacterizing personal items as business expenses; services performed by children; recordkeeping of hours worked; documentation.
Vincent C. Hamilton et ux. T.C. Memo. 2018-62 Sec. 61; 108; 6651; 6751; gross income definition; cancellation of debt; failure to file or pay; procedural requirements; insolvency; nominee; control over assets; approval of penalty by supervisor.
Dynamo Holdings Limited Partnership, et al. T.C. Memo. 2018-61 Sec. 163; 301; 752; 1442; 6651; 6656; 6662; interest; distributions of property; treatment of certain liabilities; withholding of tax on foreign corporations; failure to file or pay; failure to deposit taxes; accuracy-related penalty; bona fide debt; constructive distribution; transactions between related parties; requirement to withhold on transaction.
Jerry L. Keenan et ux. T.C. Memo. 2018-60 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; contributions to multi-employer welfare benefit plan; failure to investigate plan; good faith defense.
Derringer Trading, LLC, et al. T.C. Memo. 2018-59 Sec. 162; 166; 195; 709; 6662; 6664; 6751; business deductions; bad debts; start-up expenses; organization and syndication fees; accuracy-related penalty; reasonable cause; procedural requirements; election to amortize; bad debt deduction for Distressed Asset Debt investment; DAD; bona fide business partnerships; zero tax basis in receivables; tax shelter transactions.
Tara Patrice Moore et vir T.C. Memo. 2018-58 Sec. 162; 170; 274; 6662; business expenses; charitable contributions; business expense substantiation; accuracy-related penalty; recordkeeping; documentation; mileage logs not contemporaneous; prove presence at training seminars where expenses incurred; business purposes for office expenses; hair salon expenses personal not business; substantiation of charitable contributions.
Abovo Foundation, Inc. T.C. Memo. 2018-57 Sec. 501; exempt organizations; organization not serving an exempt purpose; commercial in nature; benefits to inure to founder and sole employee, service profider and primary source of funding.
Bernard A. Davis et ux. T.C. Memo. 2018-56 Sec. 162; 170; 212; business expenses; charitable contributions; expenses for the production of income; employee business expenses; noncash contributions; Cohan rule; recordkeeping regularity; tax preparation costs; software.
Emery Celli Cuti Brinckerhoff & Abady T.C. Memo. 2018-55 Sec. 6214; 6330; 6651; 6656; determinations by Tax Court; hearing before levy; failure to file or pay; failure to deposit taxes; collection due process; employment taxes; offset of overpayment by related taxpayer; failure to timely file employment taxes.
Earnest Mack T.C. Memo. 2018-54 Sec. 6330; 7122; hearing before levy; compromises; collection due process; offer-in-compromise; rejection of offer; reasonable collection potential; face-to-face hearing denied; summary judgment.
John E. Rogers et ux. et al. T.C. Memo. 2018-53 Sec. 61; 162; 166; 170; 263; 274; 280A; 6015; 6651; 6663; gross income definition; business expenses; bad debts; charitable contributions; capital expenditures; business expense substantiation; home office expenses; innocent spouse relief; failure to file or pay; fraud penalty; distress-debt tax shelters; worthless debt; bona fide debt; documentation; recordkeeping; tax shelters; unreported income; right to receive the income; land transferred to municipality; donative intent; home only used for record storage; expenses related to tax shelter; spouse knowledge of tax shelter; economic hardship; illness as reason for late filing; no fraudulent intent.
Ting Cai T.C. Memo. 2018-52 Sec. 162; 179; 274; 6662; 6664; business expenses; expensing business assets; business expense substantiation; accuracy-related penalty; reasonable cause; recordkeeping; documentation; good-faith effort; business purpose of travel and mileage; substantiation of rent expense from property manager's ledger.
Lawrence Scanlon and Aline Fairweather T.C. Memo. 2018-51 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; rejection of installment agreement; estimated tax payments not current; equity in assets; economic hardship not raised at hearing.
Charles D. Williams T.C. Memo. 2018-50 Sec. 6212; 6330; notice of deficiency; hearing before levy; collection due process; abuse of discretion; not in compliance with filing requirements; collection alternatives; failure to participate in telephone hearing; failure to submit past due returns; notice of deficiency unclaimed.
Stacey S. Marks T.C. Memo. 2018-49 Sec. 72; 408; 6662; early distributions; individual retirement accounts; accuracy-related penalty; IRAs; prohibited transaction by custodian; account no longer qualified; no amount includible in income.
David Williams; Nutratech, LTD, Globaltrex, LLC, Tax Matters Partners T.C. Memo. 2018-48 Sec. 183; 6662; 6664; not-for-profit activities; accuracy-related penalty; reasonable cause; hobby losses; cattle ranching; factors weighed.
Randall Jennette T.C. Memo. 2018-47 Sec. 6330; Tax Court Rule 121; hearing before levy; collection due process; penalties could not be challenged in Tax Court; failure to participate in supplemental collection due process hearing.
Alvaro G. Velez T.C. Memo. 2018-46 Sec. 162; 274; 6662; 6664; 6751; business expenses; business expense substantiation; accuracy-related penalty; reasonable cause; procedural requirements; vehicle expenses; car and truck; mileage logs; contemporaneous; recordkeeping; documentation; corroborating documentation; original calendar not presented in evidence; supervisory approval of penalty.
Wendell Falls Development, LLC, Gregory Alan Ferguson, Tax Matters Partner T.C. Memo. 2018-45 Sec. 170; 6662; 6664; charitable contributions; accuracy-related penalty; reasonable cause; conservation easement; contribution to land trust; donation in expectation of benefit; diminishment of value of land.
Raymond Edwards et ux. T.C. Memo. 2018-44 Sec. 162; 274; business expenses; business expense substantiation; listed property; auto expenses; documentation; recordkeeping; failure to specify expenses on return.
Paul J. Rademacher T.C. Memo. 2018-43 Sec. 170; 274; 6751; charitable contributions; business expense substantiation; employee business expenses; mileage; charitable contribution documentation; business expenses recordkeeping and documentation; procedural requirements; supervisory approval of accuracy-related penalties.
Gardner N. Marcy et ux. T.C. Memo. 2018-42 Sec. 6221; determination at partnership level; Tax Court jurisdiction; non subject to TEFRA; partnership return not filed; losses not partnership items; Son-of-Boss; economic substance.
Association for Honest Attorneys T.C. Memo. 2018-41 Sec. 501; exempt organizations; status revoked; non-exempt purposes; operation primarily for private interests.
Charles Brumbaugh and C.E. Holifield T.C. Memo. 2018-40 Sec. 469; 6662; 6664; passive activity losses; accuracy-related penalty; reasonable cause; airplane rental activity; material participation; 100 hours; documentation of hours spent in activity; second prong of significant participation activities; grouping of activity with other business; real estate developer.
Carlos Vallejo T.C. Memo. 2018-39 Sec. 162; 274; 6662; 6664; business expenses; busness expense substantiation; accuracy-related penalty; reasonable cause; testimony irrevalent; taxpayer failed to support his position.
Derrick Davidson et ux. T.C. Memo. 2018-38 Sec. 71; 215; 6662; 6664; alimony; alimony; accuracy-related penalty; reasonable cause; termination on death requirement for alimony; clause in decree or state law.
Povolny Group, Incorporated, et al. T.C. Memo. 2018-37 Sec. 166; 301; 316; 6662; 6751; 7491; bad debts; distributions of property; dividend defined; accuracy-related penalty; procedural requirements; burden of proof; intercompany transactions; loans; bona fide loans.
Mark Clifton Trimble T.C. Memo. 2018-36 Sec. 31; 61; 6213; 6214; tax withheld on wages; gross income definition; restrictions applicable to deficiencies; determinations by Tax Court; withholding credit.
Argosy Technologies, LLC T.C. Memo. 2018-35 Sec. 6330; 6698; hearing before levy; failure to file partnership return; LLC taxed as partnership; collection due process; no issues raised during hearing; partnership vs. single-member LLC.
Whistleblower 23711-15W T.C. Memo. 2018-34 Sec. 7623; expenses of detection of underpayment and fraud; no action taken against target taxpayer; award dependent on action and collection of tax.
Andrew G. Shank T.C. Memo. 2018-33 Sec. 408; individual retirement accounts; basis in nondeductible IRA; income from nondeductible IRA.
DTDV, LLC, Richard G. Vento, Tax Matters Partner T.C. Memo. 2018-32 Sec. 754; 6229; electing optional adjustment to basis of partnership; period of limitations for assessments; shift in gain from LLC to foreign entity; assignment of income doctrine.
James C. Platts T.C. Memo. 2018-31 Sec. 61; 165; 170; 316; 6501; 6651; 6662; 6663; 6751; gross income definition; losses; charitable contribution; dividend defined; limitations on assessment and collection; failure to file or pay; accuracy-related penalty; fraud penalty; procedural requirements; payments from corporation not loan; no bona fide loan; capital loss carryforward; capital loss deduction; proper appraisal of charitable contribution; distributions to shareholder of C corporation; economic benefit of deposits in account controlled by taxpayer; exception to three-year statute as a result of fraud; collateral estoppel; approval of penalities by IRS supervisor.
Gregory S. Larson T.C. Memo. 2018-30 Sec. 6662; 6664; accuracy-related penalty; reasonable cause; reliance on accountant; complete information to preparer; accountant's expertise.
Stefan A. Tolin T.C. Memo. 2018-29 Sec. 7430; attorney's fees; prevailing party; IRS position no longer substantially justified; reasonable litigation costs; no special legal skills.
David Keefe et ux. T.C. Memo. 2018-28 Sec. 263A; 1221; 6651; 6662; uniform capitalization rules; capital asset; failure to file or pay; accuracy-related penalty; capitalization of interest; property held for sale; trade or business; interest payments included in property's adjusted basis.
RJ Channels, Inc., et al. T.C. Memo. 2018-27 Sec. 162; 446; 6662; business expenses; methods of accounting; accuracy-related penalty; trade or business expenses; contingent liability; year of income inclusion.
Farrokh E. Pourmirzaie et ux. T.C. Memo. 2018-26 Sec. 469; 6662; 6664; passive activity losses; accuracy-related penalty; reasonable cause; rental real estate; election to treat as single activity; diary of time spent in activity; contemporaneous.
Jeffrey Wilfred Heedram T.C. Memo. 2018-25 Sec. 6015; innocent spouse relief; equitable relief; lack of financial sophistication.
Cedric Ray Allen T.C. Memo. 2018-24 Sec. 6213; 6512; 6702; restrictions applicable to deficiencies; petitions to Tax Court; frivolous returns; notice of deficiency not issued; refund claims; Tax Court jurisdiction.
Kevin E. Rushing T.C. Memo. 2018-23 Sec. 61; gross income definition; checks from rental income deposited in account; unexplained bank deposits.
Rodney P. Walker T.C. Memo. 2018-22 Sec. 6330; hearing before levy; collection due process; substitutes for return; prior chance to challenge underlying liability; IRS record of prior opportunity to challenge.
Sugar Land Ranch Development, LLC, Sugar Land Advisors, LLC, Tax Matters Partner T.C. Memo. 2018-21 Sec. 1221; 6226; capital asset definition; alternatives to payment of imputed underpayment by partnership; FPAA; Final Partnership Administrative Adjustment; sale of real estate; capital gain vs. ordinary income; ordinary course of business.
John R. Kirkpatrick T.C. Memo. 2018-20 Sec. 408; Individual Retirement Account; transfer to spouse in divorce; distribution taxable.
Duncan Bass T.C. Memo. 2018-19 Sec. 162; 274; business expenses; business expense substantiation; listed property; ordinary and necessary; car and truck expenses; strict substantiation; Cohan rule.
Michael J. Burke et ux. T.C. Memo. 2018-18 Sec. 166; 6662; 6751; bad debts; accuracy-related penalty; procedural requirements; loan vs. equity; bona fide debt; documentation; ownership interest in business.
Gary E. Krantz T.C. Memo. 2018-17 Sec. 61; gross income definition; unreported income; refund not binding; concession and notice of deficiency.
Homero F. Meruelo T.C. Memo. 2018-16 Sec. 1366; pass-through items to shareholders; net operating loss; basis in corporation; bona fide indebtedness; back-to-back loan theory.
Connie L. Minton a.k.a. Connie L. Keeney T.C. Memo. 2018-15 Sec. 6015; innocent spouse relief; abuse by spouse; fraud exception; withdrawal of funds from pension plan; equitable relief on portion of spouse's income.
Christopher C.L. Ng MD, Inc. APC T.C. Memo. 2018-14 Sec. 162; business expenses; deduction for rent paid to sole shareholder; failure to produce lease; failure to report rental income; Cohan rule.
David Muresan Scientific Research Foundation T.C. Memo. 2018-13 Sec. 501; exempt organizations; profitable products of research would benefit organization's founder or his for-profit company; failure to provide requested information.
Suzanne Jean McCrory T.C. Memo. 2018-12 Sec. 7623; expenses of detection of underpayments and fraud; whistleblower awards; action based on information.
Maron J. Wells T.C. Memo. 2018-11 Sec. 263; 6662; capital expenditures; accuracy-related penalty; reasonable cause; self-prepared return; complicated issue; extensive records.
David L. Bruner T.C. Memo. 2018-10 Sec. 7430; Tax Court Rule 232; attorney's fees; litigation costs; administrative costs; prevailing party; basis of concession.
Tamatha D. Byrum et vir T.C. Memo. 2018-9 Sec. 61; 6651; 6663; gross income definition; failure to file or pay; fraud penalty; embezzled income not reported; statute of limitations open; false or fraudulent returns.
Joy Ford T.C. Memo. 2018-8 Sec. 172; 183; 6662; 6664; net operating loss; not-for-profit activities; accuracy-related penalty; burden of proof; music club; profit motive; substantiation of losses for NOL; accuracy-related penalty requires approval from IRS supervisor.
James S. Plato T.C. Memo. 2018-7 Sec. 6651; 6654; failure to file or pay; failure to pay estimated taxes; late filing; extension not requested; failure to pay penalty not shown; estimated tax payments in community property state married filing separate.
Barry G. Conner et ux. T.C. Memo. 2018-6 Sec. 162; 163; 170; 172; 212; 469; 6662; business expenses; interest expense; charitable contributions; net operating losses; expenses for the production of income; passive activity losses; accuracy-related penalty; properties held for development or investment; separate entity; expenses not deductible as trade or business; bargain sale of property to church; property held as long-term capital asset as noncash contribution; material participation; documentation to support time spent in activity; reliance on accountant.
Michelle Keel T.C. Memo. 2018-5 Sec. 36B; 61; credit for coverage under a qualified health plan; gross income definition; advance premium assistance tax credit; cancellation of debt income included to determine eligibility for credit.
John Anthony Glennon T.C. Memo. 2018-4 Sec. 61; 108; gross income definition; cancellation of indebtedness income; settlement of credit card debt; no claim of insolvency.
Vincent M. Lorusso T.C. Memo. 2018-3 Sec. 6673; penalty for delay; Tax Court Rule 53; maintaining frivolous position; delay penalty; withdrawal of petition.
Joan Farr f.k.a. Joan Heffington T.C. Memo. 2018-2 Sec. 4958; taxes on excess benefit transactions; tax-exmept organization; disqualified person; Form 990-PF; private foundation; purchases for personal use.
Curtis Eugene Ankerberg T.C. Memo. 2018-1 6663; 6664; fraud penalty; definitions and special rules; badges of fraud; pattern of unreported income; failure to cooperate with IRS; failure to keep or produce records; overstated deductions.

 

Summary Opinions

Chevy Frankel T.C. Summary Opinion 2018-45 Sec. 163; interest expenses; mortgage interest; equitable owner of property; obligation to pay mortgage; agreement between spouses; property rights.
James E. Lawson and Christiane D. Lawson T.C. Summary Opinion 2018-44 Sec. 162; 163; 1366; 6662; 6664; business expenses; interest expenses; pass-through items to shareholders; accuracy-related penalty; reasonable cause; mortgage interest; real property taxes; insurance premiums; Schedule E expenses; bases in S corporation; bona fide loans to S corporation.
Richard Bryan Jackson and Nora Irene Jackson T.C. Summary Opinion 2018-43 Sec. 61; 108; gross income definition; cancellation of debt income; insolvency exclusion; requirement to make buy-back payments to substitute for retirement account.
Jason J. Gartlan T.C. Summary Opinion 2018-42 Sec. 36B; advance premium tax credit; PTC; taxpayer qualification to credit; income not below federal poverty level; FPL.
Jeremy Adam Vanderhal T.C. Summary Opinion 2018-41 Sec. 71; 215; 1041; 6662; alimony; alimony; transfers between spouses or incident to divorce; accuracy-related penalty; payments for ex-spouse's student loans; debt vs. property; tax-free transfers.
Horace R. Weaver and Candace M. Weaver T.C. Summary Opinion 2018-40 Sec. 162; 274; 6662; 6664; business expenses; business expense substantiation; accuracy-related penalty; reasonable cause; unreimbursed employee business expenses; trade and business expenses; auto and truck expenses; documentation; recordkeeping; vehicle logs; meals and entertainment expenses; travel expenses; substantial understatement.
Joseph Brian Whiteford and Gwenn Catherine Whiteford T.C. Summary Opinion 2018-39 Sec. 61; 162; 6662; gross income definition; business expenses; accuracy-related penalty; unreported income; reconstruction of income; bank deposits method; substantiation; documentation; recordkeeping; substantiation of rental property expenses.
John A. Garcia and Jamie Garcia T.C. Summary Opinion 2018-38 Sec. 162; 6662; 6664; business expenses; accuracy-related penalty; reasonable cause; legal and professional expenses; ordinary and necessary; not expenses of corporation.
Daniel Campbell and Terri Campbell T.C. Summary Opinion 2018-37 Sec. 162; 262; 274; 280A; 6662; 6664; 6751; business expenses; personal expenses; business expense substantiation; home office; accuracy-related penalty; reasonable cause; procedural requirements; employee business expenses; vehicle expenses between worksites; travel between residence and worksite; transportation of tools; documentation; recordkeeping; clothing useable as ordinary clothing; portion of home not used exclusively as principal place of business; convenience of employer; failure to provide tax preparer with adequate documentation.
Jacques L. French and Sherry L. French T.C. Summary Opinion 2018-36 Sec. 61; 104; gross income definition; damage awards and sick pay; settlement award not related to disputed debt; settlement not for personal physical injuries or sickness; lost time and inconvenience.
Shash Schaekar T.C. Summary Opinion 2018-35 Sec. 162; 217; 274; 6662; business expenses; moving expenses; business expense substantiation; accuracy-related penalty; employee business expenses; qualification to deduct moving expenses; reimbursement by employer; no mileage log.
Eric Amaefuna T.C. Summary Opinion 2018-34 Sec. 6330; hearing before levy; collection due process; claim income should be reported on related entity; failure to provide documentation; collection alternative not requested.
Donald L. Zinger and Nicole A. Zinger T.C. Summary Opinion 2018-33 Sec. 61; 104; gross income definition; damage awards and sick pay; settlement for hostile work environment; discrimination; reference to personal injury or physical sickness.
Rodrigo Kho and Loreta Kho T.C. Summary Opinion 2018-32 Sec. 151; 162; 262; 6662; 6664; dependent definition; business expenses; personal expenses; accuracy-related penalty; reasonable cause; one-half of support from taxpayers; ordinary and necessary; auto and truck expenses; meals and entertainment.
Lonnie D. Johnson, Jr. T.C. Summary Opinion 2018-31 Sec. 24; 32; 152; child tax credit; earned income tax credit; dependent definition; additional child tax credit; Form 8332; Release of Claim to Exemption for Child of Divorced or Separated Parents; principal place of abode for children; one-half of year; qualifying child.
Roger G. Maki and Lilane J. Gervais T.C. Summary Opinion 2018-30 Sec. 162; business expenses; away from home; away from tax home; per diem rates.
Joseph Engesser T.C. Summary Opinion 2018-29 Sec. 2; 24; 32; 152; head of household; child tax credit; earned income tax credit; dependent definition; lived in household more than one-half year; Form 8332; qualifying child; Release of Claim to Exemption for Child of Divorced or Separated Parents.
Rhoeda Joy Tan Farolan T.C. Summary Opinion 2018-28 Sec. 162; 170; 262; 274; business expenses; charitable contributions; personal expenses; business expense substantiation; unreimbursed employee business expenses, clothing and cleaning; general use; failure to prove purpose of travel expenses; substantiation of charitable contributions.
Homayoun Samadi et ux. T.C. Summary Opinion 2018-27 Sec. 162; 6662; 6664; business expenses; accuracy-related penalty; reasonable cause; actively engaged in business; entitled to expenses; startup phase; business actually began.
Adam D. Fehr T.C. Summary Opinion 2018-26 Sec. 162; 274; business expenses; business expense substantiation; vehicle, meal and entertainment, travel expenses disallowed for substantiation; unreimbursed business expenses; Cohan rule; expenses not directly related to business; documentation; recordkeeping.
John A. Voigt et ux. T.C. Summary Opinion 2018-25 Sec. 61; 117; 132; gross income definition; qualified scholarships; fringe benefits; tuition waiver benefit; not employee of qualified educational institution.
Aaron Keith Nicholson T.C. Summary Opinion 2018-24 Sec. 162; 262; 274; 6662; business expenses; personal expenses; business expense substantiation; accuracy-related penalty; expenses to foster creativity; contract labor expenses for children; ordinary and necessary expenses.
Chinelo Nwankwo Suwareh, Petitioner and Lamin B. Suwareh, Intervenor T.C. Summary Opinion 2018-23 Sec. 6015; innocent spouse relief; noncash charitable contribution; constructive knowledge; neither divorced nor legally separated on filing for relief.
Teresa J. Henley T.C. Summary Opinion 2018-22 Sec. 61; 165; gross income definition; losses; gambling losses; diary or contemporaneous record of losses; Cohan rule; application to losses.
Stanislav Antoniev Dimitrov T.C. Summary Opinion 2018-21 Sec. 274; 6662; business expense substantiation; accuracy-related penalty; contemporaneous log; recordkeeping; documentation; vehicle expenses.
Saline Jivani T.C. Summary Opinion 2018-20 Sec. 6320; 6330; 6651; 6654; hearing on filing lien notice; hearing before levy; failure to file or pay; failure to make estimated payments; collection due process.
Michelle M. Moreno T.C. Summary Opinion 2018-19 Sec. 6330; hearing before levy; collection due process; failure to provide requested information.
Allen A. Vest T.C. Summary Opinion 2018-18 Sec. 6330; 6402; hearing before levy; authority to make refunds or credits; collection due process; overpayment offset by debt; overpayment of wholly owned corporation; Tax Court jurisdiction on IRS actions on corporation's overpayment.
Shane Havener and Amy E. Costa T.C. Summary Opinion 2018-17 Sec. 162; 263; business expenses; capital expenditures; not in trade or business; investment activity; capitalization of expenditures.
Albert Anthony Oliver T.C. Summary Opinion 2018-16 Sec. 61; 72; gross income definition; early distributions; pension plans; IRAs; portion of benefit not taxable.
Gary K. Sherman et ux. T.C. Summary Opinion 2018-15 Sec. 1402; self-employment tax; deferred compensation; payments not in jeopardy.
Hamid Jahangirian and Shohreh Chalshtari T.C. Summary Opinion 2018-14 Sec. 162; 262; business expenses; personal expenses; unreimbursed employee business expenses; travel away from home; tax home; more than a year or indefinite.
James Edward Bradley, Jr. and Margaret Letitia Hayes-Hunter T.C. Summary Opinion 2018-13 Sec. 162; 174; business expenses; research and experimental expenditures; claimed expenditure not for deductible business expense; taxpayer's own labor; research not in experimental or laboratory sense.
Toni Harris T.C. Summary Opinion 2018-12 Sec. 25A; American Opportunity Credit; substantiation; payment of qualified tuition.
Ron William Thompson T.C. Summary Opinion 2018-11 Sec. 162; 274; business expenses; business expense substantiation; vehicle expenses; auto and truck; contemporaneous log; unreimbursed business expenses; duplication of mileage on Schedule A.
Bruce Joseph Levitz et ux. T.C. Summary Opinion 2018-10 Sec. 165; 469; 1221; losses; passive activity losses; capital asset definition; real estate; trade or business vs. investment; sale of property long-term capital loss; reason for acquisition of property; business of real estate development and sale.
Jose Franco et ux. T.C. Summary Opinion 2018-9 Sec. 469; passive activity losses; architect as real estate professional; material participation; taxpayer testimony for time spent; objective evidence; log; business records.
Ibrahim Abdel-Fatah et ux. T.C. Summary Opinion 2018-8 Sec. 25A; American Opportunity Credit; records of tuition payments.
Rick Colbert et ux. T.C. Summary Opinion 2018-7 Sec. 162; 262; 274; 280A; 280F; business expenses; personal expenses; business expense substantiation; home office; listed property; gym membership; home office used exclusively for business; use of tablet and printer for work; clothing for work.
Brandon Brown et ux. T.C. Summary Opinion 2018-6 Sec. 162; 263; business expenses; capital expenditures; improvements to real property vs. remedial repairs; work to conform to lease terms; value of property before and after repair.
David Alan Devaleria T.C. Summary Opinion 2018-5 Sec. 71; 215; alimony; alimony; divorce decree; termination; voluntary payments.
Michael Royce Preston T.C. Summary Opinion 2018-4 Sec. 6330; hearing before levy; collection due process; offer-in-compromise rejection; ability to pay; installment agreement.
Pantano Baptist Church T.C. Summary Opinion 2018-3 Sec. 6320; 6330; hearing on filing lien notice; hearing before levy; collection due process; prior opportunity to contest penalties; failure to provide financial information.
Evgeny Kiselev T.C. Summary Opinion 2018-2 Sec. 61; 894; gross income definition; income affected by treaty; Russian graduate student; stipend to fund scientific research; temporarily present in U.S.; recipient of grant.
Colin C. Bishop, Petitioner and Lisa Bishop, Intervenor T.C. Summary Opinion 2018-1 Sec. 6015; innocent spouse relief; knowledge of income; actual knowledge; failure to report retirement distributions; deposited in joint account.

 


Copyright 2018 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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