Read more about the article Riverside Place LLC v. Commissioner (T.C. Memo. 2020-103)
Tax Opinions / Charitable Issues / Memorandum Opinions

Riverside Place LLC v. Commissioner (T.C. Memo. 2020-103)

On July 9, 2020, the Tax Court issued a Memorandum Opinion in the case of Riverside Place LLC v. Commissioner (T.C. Memo. 2020-103). The primary issue before the court in Riverside Place LLC v. Commissioner was whether the IRS properly disallowed the charitable contribution deduction with respect to the donation of a conservation easement in full because the conservation purpose underlying the easements was not “protected in perpetuity” as required by IRC § 170(h)(5)(A), insofar as the charitable grantee was not absolutely entitled to a proportionate share of the proceeds in the event the property was sold following a judicial extinguishment of the easement. Issues in Riverside Place LLC v. Commissioner The questions of law are identical to those presented in PBBM-Rose Hill, Ltd. v. Commissioner, 900 F.3d 193 (5th Cir. 2018); Oakbrook Land Holdings, LLC v. Commissioner, 154 T.C. No. 10 (May 12, 2020); Coal Prop. Holdings, LLC v. Commissioner,…

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July 9, 2020
Read more about the article Village at Effingham LLC v. Commissioner <section> T.C. Memo. 2020-102 </section>
Tax Opinions / Charitable Issues / Memorandum Opinions

Village at Effingham LLC v. Commissioner
T.C. Memo. 2020-102

On July 9, 2020, the Tax Court issued a Memorandum Opinion in the case of Village at Effingham LLC v. Commissioner (T.C. Memo. 2020-102). The primary issue before the court in Village at Effingham LLC v. Commissioner was whether the IRS properly disallowed the charitable contribution deduction with respect to the donation of a conservation easement in full because the conservation purpose underlying the easements was not “protected in perpetuity” as required by IRC § 170(h)(5)(A), insofar as the charitable grantee was not absolutely entitled to a proportionate share of the proceeds in the event the property was sold following a judicial extinguishment of the easement. Issues in Village at Effingham LLC v. Commissioner The questions of law are identical to those presented in PBBM-Rose Hill, Ltd. v. Commissioner, 900 F.3d 193 (5th Cir. 2018); Oakbrook Land Holdings, LLC v. Commissioner, 154 T.C. No. 10 (May 12, 2020); Coal Prop. Holdings,…

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July 9, 2020
Business Related Issues
Tax Opinions / Business Related Issues / Memorandum Opinions

Simpson v. Commissioner
T.C. Memo. 2020-100

On July 7, 2020, the Tax Court issued a Memorandum Opinion in the case of Simpson v. Commissioner (T.C. Memo. 2020-100). The issue before the court in Simpson v. Commissioner was whether the petitioners were allowed deductions for unreimbursed partnership expenses (2012-2014) and unreimbursed employee business expenses (2014), which deductions were adjusted in the IRS’s amended answer. Background to Simpson v. Commissioner The IRS issued the petitioners a notice of deficiency for tax years 2012, 2013, and 2014. Among other determinations made in that notice, the IRS disallowed the petitioners’ deductions for unreimbursed partnership expenses and unreimbursed employee business expenses. The IRS also disallowed unreimbursed employee business expense deductions for 2012 and 2013, and the some of the unreimbursed partnership expense deductions for 2013 and 2014. The IRS answered the petition, and (for reasons not specified in the opinion) decided to turn the screws on the petitioners even more and…

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July 7, 2020
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
Procedural Issues
Tax Opinions / Memorandum Opinions / Procedural Issues

Nguyen v. Commissioner
T.C. Memo. 2020-96

On June 30, 2020, the Tax Court issued a Memorandum Opinion in the case of Nguyen v. Commissioner (T.C. Memo. 2020-96). The basic, threshold issue before the court in Nguyen v. Commissioner was whether the petitioner may challenge his underlying liability in the Tax Court. Brief Background to Nguyen v. Commissioner the IRS sent, by certified mail, a notice of deficiency for the years in issue to the petitioner at his last-known address. The notice included IRC § 6662(a) accuracy-related penalties. An IRS certified mail list bears a U.S. Postal Service (USPS) stamp dated the day of mailing, and the envelope addressed to the petitioner’s last-known address was stamped by the USPS to show that the item was unclaimed and the USPS was unable to forward it. The IRS assessed the penalties and filed a NFTL, mailed to the petitioner (at his last known address), which the petitioner received, and…

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June 30, 2020