Procedural Issues
Tax Opinions / Memorandum Opinions / Procedural Issues

Goldberg v. Commissioner
T.C. Memo. 2020-38

On April 2, 2020, the Tax Court issued a 163-page Memorandum Opinion in the case of Goldberg v. Commissioner (T.C. Memo. 2020-38). The issues properly before the court in Goldberg v. Commissioner were whether Form 4549 (Income Tax Examination Changes) is a binding contract and whether the interest under IRC § 6404(e)(1) should be abated. A number of other issues including collateral and equitable estoppel were raised, but the Tax Court found that they were not properly before the Tax Court. Background to Goldberg v. Commissioner The IRS issued a notice of federal tax lien (NFTL) in November 2012. The petitioner timely requested a CDP hearing, which was held, and a notice of deficiency was issued. The petitioner timely filed a petition with the Tax Court, which remanded the case to Appeals to review the petitioner’s claims for interest abatement. After a supplemental hearing, Appeals issued a supplemental determination rejecting…

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April 2, 2020
Penalties Under the Code
Tax Opinions / Memorandum Opinions / Penalties Under the Code

McNamee v. Commissioner
T.C. Memo. 2020-37

On March 18, 2020, the Tax Court issued a Memorandum Opinion in the case of McNamee v. Commissioner (T.C. Memo. 2020-37). The issue presented in McNamee v. Commissioner was whether the petitioner was liable for 17 preparer penalties or whether the penalties had been assessed improperly for want of a final administrative determination. Background to McNamee v. Commissioner Petitioner is a CPA, who prepared income tax returns for individual taxpayers. The IRS opened an examination to investigate the propriety of the returns he had prepared for (among other years) the taxable year 2009. IRS sent petitioner numerous (valid) Letters 1125 (30-day letters), with enclosed examination reports, explaining that it proposed to assess penalties with respect to the returns he had prepared for 18 taxpayers for 2009. For each return the IRS proposed to assess a $1,000 penalty under IRC § 6694(a) (unreasonable positions) and an additional $4,000 penalty under IRC…

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March 18, 2020
Penalties Under the Code
Tax Opinions / Memorandum Opinions / Penalties Under the Code

Bishop v. Commissioner
T.C. Memo. 2020-36

On March 17, 2020, the Tax Court issued a Memorandum Opinion in the case of Bishop v. Commissioner (T.C. Memo. 2020-36). The issues presented in Bishop v. Commissioner were whether the petitioner could raise underlying tax liabilities before the Tax Court, and whether the IRS abused its discretion in upholding a proposed levy. Background to Bishop v. Commissioner The petitioner filed delinquent Federal income tax returns for 2013 and 2014 reporting self-employment income. For each year she failed to pay, through estimated tax payments or otherwise, the tax shown as due on her return. The IRS assessed the tax shown as due and additions to tax for failure to timely file, failure to pay, and failure to make estimated tax payments. See IRC § 6654, IRC §6651(a)(1), and IRC § 6651(a)(2). Subsequent to a notice of intent to levy, petitioner requested a CDP hearing and sought collection alternatives. The petitioner…

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March 17, 2020
Procedural Issues
Tax Opinions / Memorandum Opinions / Procedural Issues

Cline v. Commissioner
T.C. Memo. 2020-35

On March 16, 2020, the Tax Court issued a Memorandum Opinion in the case of Cline v. Commissioner (T.C. Memo. 2020-34). The issue presented in Cline v. Commissioner was whether the IRS Whistleblower Office (WBO) abused its discretion when it denied the petitioners claims against a taxpayer because such claims failed to provide specific and credible information regarding tax underpayments or violations of internal revenue laws. Background to Cline v. Commissioner The petitioner alleged that his former employer, which the Tax Court notes had been convicted of fraud multiple times, failed to report income, failed to disclose a stock sale, underreported income in other years, and maintained poor accounting practices. Unfortunately, the statute of limitations for assessment had run against the misfeasor, and the IRS Whistleblower Office (WBO) accordingly rejected the petitioner’s claims and did not forward the claim to Exam for possible further action. The WBO sent the petitioner…

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March 16, 2020
Procedural Issues
Tax Opinions / Full Tax Court Opinions / Procedural Issues

Lander v. Commissioner
154 T.C. No. 7

On March 12, 2020, the Tax Court issued its opinion in Lander v. Commissioner (154 T.C. No. 7). The issue presented in Lander v. Commissioner was whether the petitioners, who did not receive the statutory notice of deficiency (SNOD) mailed to their last known address, could challenge their underlying tax liability in a collection due process (CDP) proceeding. Public Service Announcement from Lander v. Commissioner You may have come to this post because you are interested in IRC § 6330’s notice and receipt requirements. You may have come to this post because you are interested in what happens when a taxpayer is mailed a notice of deficiency to an address where he does not live anymore. You may have come by chance (fate, really). You may even have come by mistake (still fate). No matter why you are here, you really should stay to learn what happens to the erstwhile-favorite…

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March 12, 2020
Income Tax Issues
Tax Opinions / Income Tax Issues / Memorandum Opinions / Procedural Issues

Staples v. Commissioner
T.C. Memo. 2020-34

On March 11, 2020, the Tax Court issued a Memorandum Opinion in the case of Staples v. Commissioner (T.C. Memo. 2020-34). The issue presented in Staples v. Commissioner was whether petitioner is entitled to a loss deduction on account of his Federal disability annuity benefits, as reduced by the amount he received as Social Security Disability Insurance (SSDI) benefits. Background to Staples v. Commissioner The petitioner worked for the USPTO until disability forced him to retire in 2012. Thereafter, the petitioner received Federal Employees Retirement System (FERS) disability income and Social Security Disability Insurance (SSDI) benefits. The petitioner did not claim a loss deduction on his timely filed return. Because of other income, the IRS sent a Notice CP2000 (proposed adjustments) regarding the petitioner’s 2015 return, and the petitioner responded timely. In the petitioner’s response, he cited serious illness and incapacitation. The petitioner conceded the additional income, but he contested…

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March 11, 2020