Joseph v. Commissioner T.C. Memo. 2020-65
On May 19, 2020, the Tax Court issued a Memorandum Opinion in the case of Joseph v. Commissioner (T.C. Memo. 2020-65). The issue before the court in Joseph v. Commissioner was whether a petitioners’ concessions in a stipulation of settled issues regarding capital gain and income could subsequently be used by the IRS to amend the IRS’s answer to a Tax Court petition, and if so, whether the stipulation should be modified or set aside based upon the tax consequences of the IRS’s amended position. Brief Background to Joseph v. Commissioner The IRS issued a notice of deficiency for the petitioner's 2011, 2012, and 2013 taxable years on the basis of substitutes for returns (SFRs) prepared under IRC § 6020(b)(1). Thereafter, the petitioner filed or otherwise provided the IRS with returns for those years in which the petitioner claimed deductions from partnerships and S corporations. The parties executed a “stipulation…
