Procedural Issues
Procedural Issues

Belair v. Commissioner
157 T.C. No. 2

On August 2, 2021, the Tax Court issued its opinion in Belair v. Commissioner (157 T.C. No. 2). The primary issue presented in Belair v. Commissioner  was whether in a CDP nonliability case the traditional rules of summary judgment are appropriate. Holding in Belair v. Commissioner In a CDP nonliability case such as this, the Tax Court’s decision turns on whether the administrative record shows an abuse of discretion, and the Tax Court’s traditional rules of summary judgment are generally not appropriate. Instead, summary judgment serves as a mechanism for deciding, as a matter of law, whether Appeals’ determination is supported by the administrative record and is not arbitrary, capricious, or without sound basis in fact or law. Procedural Background to Belair v. Commissioner The petitioner, Mary T. Belair, timely petitioned the Tax Court after Appeals determined that she was not eligible for an installment agreement as she had requested. See…

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August 31, 2021
International Issues
International Issues / Memorandum Opinions / Tax Opinions

Garcia v. Commissioner
157 T.C. No. 1

On July 19, 2021, the Tax Court issued its opinion in Garcia v. Commissioner (157 T.C. No. 1). The primary issues presented in Garcia v. Commissioner were whether the petition to reverse the certification of a seriously delinquent tax debt was mooted by the actual reversal and whether the Tax Court had jurisdiction in a passport certification case to determine whether the rejection of a collection alternative was in error. Background of Certification Statute in Garcia v. Commissioner IRC § 7345, enacted in 2015, is captioned “Revocation or Denial of Passport in Case of Certain Tax Delinquencies.” It provides that, if the IRS certifies that an individual has a “seriously delinquent tax debt,” that certification will be transmitted “to the Secretary of State for action with respect to denial, revocation, or limitation of a passport.” IRC § 7345(a). A taxpayer aggrieved by such action may petition this Court “to determine whether…

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August 31, 2021
Income Tax Issues
Income Tax Issues / Memorandum Opinions / Tax Opinions

Hussey v. Commissioner
156 T.C. No. 12

On June 24, 2021, the Tax Court issued its opinion in Hussey v. Commissioner (156 T.C. No. 12). The primary issues presented in Hussey v. Commissioner were whether the petitioner was required to reduce his bases in disposed depreciable real properties immediately before sales of those properties in year of discharge of qualified real property business indebtedness (QRPBI), rather than in subsequent year; whether the taxpayer had discharge of indebtedness income; and whether the taxpayer had reasonable cause to avoid accuracy related penalties. Background of Hussey v. Commissioner In 2012 the petitioner received a discharge of qualified real property business indebtedness (QRPBI). The discharge of QRPBI may be excluded from income if the taxpayer's bases in depreciable real properties are reduced by the amount of the debt discharge. IRC § 108(a)(1)(D), (c)(1). A basis reduction occurs only to the extent that the taxpayer's aggregate bases in depreciable real properties equal…

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August 31, 2021