Penalties Under the Code
Tax Opinions / Memorandum Opinions / Penalties Under the Code

Minemyer v. Commissioner
T.C. Memo. 2020-99

On July 1, 2020, the Tax Court issued a Memorandum Opinion in the case of Minemyer v. Commissioner (T.C. Memo. 2020-99). The basic, threshold issue before the court in Minemyer v. Commissioner was whether petitioner is liable for a fraud penalty pursuant to IRC § 6663(a) for tax year 2001. Petitioner in Minemyer v. Commissioner is Not a Good Taxpayer One week prior to Tax Day in 2008, the Government filed a two-count indictment against the petitioner in U.S. District Court related to “alleged” income tax evasion under IRC § 7201. The indictment accused the petitioner of filing “false” and “fraudulent” income tax returns for 2000 and 2001, and it alleged he had knowingly omitting passthrough income which created a substantial understatement of income. The petitioner eventually pleaded guilty to income tax evasion for 2000. Pursuant to the plea agreement, the petitioner pleaded guilty to count 1 (2000) and count…

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

Dennis v. Commissioner
T.C. Memo. 2020-98

On July 1, 2020, the Tax Court issued a Memorandum Opinion in the case of Dennis v. Commissioner (T.C. Memo. 2020-98). The primary issue before the court in Dennis v. Commissioner was whether the petitioners were entitled to reasonable litigation or administrative costs when, after CDP appeals, petition, and remand from Tax Court to Appeals, the IRS conceded all issues. Brief Background in Dennis v. Commissioner The IRS screwed this one up, but they were bailed out by pro se taxpayers. Notices of determination were issued for deficiencies arising from the default of a direct debit installment agreement. The petitioners mailed a $7,500 check to the IRS in a timely fashion, and though they were in “violation” of their direct debit obligation, they had not defaulted on the installment agreement. Appeals did not sustain the proposed levy and directed the IRS to reinstate the direct debit portion of petitioners’ installment…

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July 1, 2020