Income Tax Issues
Tax Opinions / Income Tax Issues / Memorandum Opinions / Procedural Issues

Onyeani v. Commissioner
T.C. Memo. 2020-15

On January 16, 2020, the Tax Court issued a Memorandum Opinion in the case of Onyeani v. Commissioner (T.C. Memo. 2020-15). The issue presented in Onyeani v. Commissioner was whether the IRS appropriately issued a termination assessment against the petitioner and determined that his illegal income was taxable. Note on Onyeani v. Commissioner Hello, dear reader, I am Ogorji Timothy Wilson Onyeani, a Nigerian doctor, who has come upon a sum of money in the oil and gas business, purchasing 5 million barrels of Nigerian light crude (worth over $250m!) to be discharged in Yangshan Port, Shanghai, China. I was given your name by a mutual friend, Mr. Smith, and offering [sic] you the opportunity to invest in this project. Please wire funds to Bank of America account No. x9724 in advance fees to secure your money. Questions directed to ogorgi@not-a-nigerian-prince-so-this-isn’t-a-scam.com. This is how I imagine the petitioner’s solicitation for…

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January 16, 2020
Penalties Under the Code
Tax Opinions / Full Tax Court Opinions / Penalties Under the Code

Laidlaw’s Harley Davidson Sales Inc. v. Commissioner
154 T.C. No. 4

On January 16, 2020, the Tax Court issued its opinion in Laidlaw’s Harley Davidson Sales Inc. v. Commissioner (154 T.C. No. 4). The issue presented in Laidlaw’s Harley Davidson Sales Inc. v. Commissioner was whether the written supervisory approval requirement of IRC § 6751(b)(1) applied to the assessable penalty imposed by IRC § 6707A (failure to disclose a reportable transaction). 30-Day Letter Triggered IRC § 6751(b)(1) Supervisory Approval Requirement in Laidlaw’s Harley Davidson Sales Inc. v. Commissioner The petitioner in Laidlaw’s Harley Davidson received a 30-day letter, which notified the petitioner of the IRS’s proposed penalties for failure to disclose a reportable transaction on its Form 1120 under IRC § 6707A. Importantly, the 30-day letter explained that, in the event that the petitioner wished to oppose the penalty, it was entitled to request a conference with Appeals. Thus, the letter indicated that the IRS’s Examination Division had concluded its work in the matter.…

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January 16, 2020