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

Kroner v. Commissioner
T.C. Memo. 2020-73

On June 1, 2020, the Tax Court issued a Memorandum Opinion in the case of Kroner v. Commissioner (T.C. Memo. 2020-73). The issues before the court in Kroner v. Commissioner were (1) whether transfers of funds to petitioner during the years at issue constitute gifts that petitioner properly excluded from gross income under IRC § 102 and (2) whether petitioner is liable for accuracy-related penalties under IRC § 6662. How Many Kroners does it Take to Pay off a Kroner’s Tax Liability? There are just under 9 Norwegian kroner to every dollar (at the time this post was written), and so it would take approximately 53m kroner to pay of Mr. Kroner’s deficiency for 2006 alone. Mr. Kroner created a Nevis trust in 2004, the beneficiaries of which were Kroner and his son. Kroner formed a Bahamian trust in 2007 to which he transferred substantial liquid assets. In 2005, 2006,…

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June 1, 2020
Procedural Issues
Tax Opinions / Memorandum Opinions / Procedural Issues

Nimmo v. Commissioner
T.C. Memo. 2020-72

On June 1, 2020, the Tax Court issued a Memorandum Opinion in the case of Nimmo v. Commissioner (T.C. Memo. 2020-72). The sole issue before the court in Nimmo v. Commissioner was whether the IRS abused its discretion in sustaining the collection action against petitioner, who failed to attend (call into) his initial CDP hearing, failed to submit required documentation at his subsequent CDP hearing (on another tax period), and otherwise failed to communicate with the IRS during the collection and appeal process. No Documents, No Estimated Tax Payments – No Collection Alternative in Nimmo v. Commissioner A taxpayer at a CDP hearing may propose a collection alternative (e.g., an installment agreement or offer in compromise). If, however, the petitioner merely mentions interest in one, but makes no concrete proposal, the IRS is not obligated to make one for him. See Gentile v. Commissioner, T.C. Memo. 2013-175, aff’d, 592 F.…

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June 1, 2020
Income Tax Issues
Tax Opinions / Income Tax Issues / Memorandum Opinions

Estate of Bolles v. Commissioner
T.C. Memo. 2020-71

On June 1, 2020, the Tax Court issued a Memorandum Opinion in the case of Estate of Bolles v. Commissioner (T.C. Memo. 2020-71). The sole issue before the court in Estate of Bolles v. Commissioner was whether the transfers from the decedent, Mary Bolles, to her son Peter, which transfers aggregated over $1m, should be treated as loans or gifts. According to the Tax Court, “Each side sees the answer as totally one way. We disagree with both parties as we explain herein.” The Miller Factors as Introduced in Estate of Bolles v. Commissioner Ever since Thog thought Thag was giving him his saber-toothed tiger club, and Thag thought that made it clear (as clear as Neanderthal vocalizations could be) that he was just loaning the club to Thog to impress Thog’s new lady friend, humanity has dealt with the fundamental question of whether a transfer of valuable property was a…

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June 1, 2020