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

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

On June 30, 2020, the Tax Court issued a Memorandum Opinion in the case of Bethune v. Commissioner (T.C. Memo. 2020-96). The primary issue before the court in Bethune v. Commissioner was whether an official signed statement by the custodial parent giving up the right to claim the child as a dependent on his tax return, which statement was not attached to the noncustodial parent’s return, would support a dependency exemption deduction, the child tax credit, and head of household status. Background in Bethune v. Commissioner The petitioner timely filed her 2014 return, claiming two of her four children as dependents. The petitioner’s ex-husband, likewise, timely filed his 2014 return, claiming the very same children as dependents. No Form 8823 was attached to the petitioner’s return, even though the petitioner was not at that time the custodial parent of the two children. In June 2015, just months after filing the…

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June 30, 2020
Procedural Issues
Tax Opinions / Full Tax Court Opinions / Procedural Issues

Ruesch v. Commissioner (154 T.C. No. 13)

On June 25, 2020, the Tax Court issued its opinion in Ruesch v. Commissioner (154 T.C. No. 13). The two issues in Ruesch v. Commissioner were (1) whether the Tax Court possessed jurisdiction under IRC § 7345(b) to consider the petitioner’s challenge to her underlying tax debts; and (2) whether the Tax Court possessed jurisdiction to review the petitioner’s challenge to the IRS’s certification of the petitioner’s liabilities as “seriously delinquent pursuant to IRC § 7345(e). Framework of IRC § 7435 (Denial, Revocation, or Limitation of Passport for Seriously Delinquent Tax Debt) IRC § 7345 (Revocation or Denial of Passport in Case of Certain Tax Delinquencies), enacted in 2015, provides that, if the IRS certifies that an individual has a seriously delinquent tax debt, the IRS may coordinate with the State Department to deny, revoke, or limit the delinquent taxpayer’s passport. IRC § 7345(a). A taxpayer aggrieved by such action…

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June 25, 2020
Read more about the article Lumpkin HC LLC v. Commissioner <section> T.C. Memo. 2020-95 </section>
Memorandum Opinions / Charitable Issues / Tax Opinions

Lumpkin HC LLC v. Commissioner
T.C. Memo. 2020-95

On June 23, 2020, the Tax Court issued a Memorandum Opinion in the case of Lumpkin HC LLC v. Commissioner (T.C. Memo. 2020-95). The primary issue before the court in Lumpkin HC 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. References in Lumpkin HC LLC v. Commissioner For a complete discussion, which was basically summarized and reprinted in this case, see Oakbrook Land Holdings, LLC v. Commissioner, 154 T.C. No. 10, *7 (May 12, 2020) and Oakbrook Land Holdings, LLC v. Commissioner, T.C. Memo. 2020-54 (May 12,…

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June 23, 2020
Read more about the article Lumpkin One Five Six LLC v. Commissioner <section> T.C. Memo. 2020-94 </section>
Tax Opinions / Charitable Issues / Memorandum Opinions

Lumpkin One Five Six LLC v. Commissioner
T.C. Memo. 2020-94

On June 23, 2020, the Tax Court issued a Memorandum Opinion in the case of Lumpkin One Five Six LLC v. Commissioner (T.C. Memo. 2020-94). The primary issue before the court in Lumpkin One Five Six 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. Cases Discussed in Lumpkin One Five Six LLC v. Commissioner For a complete discussion, which was basically summarized and reprinted in this case, see Oakbrook Land Holdings, LLC v. Commissioner, 154 T.C. No. 10, *7 (May 12, 2020) and Oakbrook Land Holdings, LLC…

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June 23, 2020
Read more about the article Plateau Holdings LLC v. Commissioner <section> T.C. Memo. 2020-93 </section>
Tax Opinions / Charitable Issues / Memorandum Opinions

Plateau Holdings LLC v. Commissioner
T.C. Memo. 2020-93

On June 23, 2020, the Tax Court issued a Memorandum Opinion in the case of Plateau Holdings LLC v. Commissioner (T.C. Memo. 2020-93). The primary issue before the court in Plateau Holdings 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. The (Reasonable) Greed of the Donor in Plateau Holdings LLC v. Commissioner A donor grants a conservation easement to a qualified organization, reserving the right for limited development of the unencumbered land (not in the easement) – nothing extravagant, but it will certainly add value to the…

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June 23, 2020
Read more about the article Lloyd v. Commissioner <section> T.C. Memo. 2020-92 </section>
Tax Opinions / Charitable Issues / Memorandum Opinions

Lloyd v. Commissioner
T.C. Memo. 2020-92

On June 22, 2020, the Tax Court issued a Memorandum Opinion in the case of Lloyd v. Commissioner (T.C. Memo. 2020-92). The issue before the court in Lloyd v. Commissioner was whether a taxpayer’s claims that “the income tax law is null and void” and that “he is entitled to a religious exemption from paying income tax because he is functioning as a church relieves him from the requirement to file and/or pay Federal income taxes. How could these arguments possibly fail? Author’s Preface This post is not going to be flattering to the petitioner. He is a crackpot – not because of his religious views, but because of his frivolous tax positions. I feel absolutely no compunction about lambasting tax wingnuts, and the fact that this particular wingnut invoked God as a tax loophole, well, that deserves a reckoning. Background to Lloyd v. Commissioner James Lloyd, the petitioner, is…

1 Comment
June 22, 2020
Income Tax Issues
Tax Opinions / Income Tax Issues / Memorandum Opinions

Rogers v. Commissioner
T.C. Memo. 2020-91

On June 18, 2020, the Tax Court issued a Memorandum Opinion in the case of Rogers v. Commissioner (T.C. Memo. 2020-91). The issue before the court in Rogers v. Commissioner was whether the petitioner-wife was eligible for innocent spouse relief pursuant to IRC § 6015(b), and, if not, whether she should be granted relief pursuant to IRC § 6015(f). A (Not So) Beautiful Day in the Neighborhood in Rogers v. Commissioner The petitioners, Mr. and Mrs. Rogers, have been married for over 50 years. At the time of trial, the petitioners were 78, and “have been and remain devoted to each other.” Though there was stress in their marriage, this was due, in large part to Mr. Rogers being a tax attorney. It appears, from the face of the opinion, that Mr. Rogers was not necessarily a “good” or “effective” tax attorney. In fact, the Tax Court notes that “[d]espite…

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June 18, 2020