Badges of Fraud Archives | Briefly Taxing

Bad Hackers

Hacker v. Commissioner
(T.C. Memo. 2022-16)

On March 7, 2022, the Tax Court issued a Memorandum Opinion in the case of Hacker v. Commissioner (T.C. Memo. 2022-16). The primary issues presented in Hacker were whether the petitioners received imputed wages and constructive dividends from their day care centers and whether the petitioners were liable for the civil fraud penalty under IRC § 6663. A Note on Hacker v. Commissioner You may remember the Hackers from two Tax Court opinions from 2021,

Scott St. Amand May 25, 2022

Bad Mr. Clark

Clark v. Commissioner
T.C. Memo. 2021-114

On September 28, 2021, the Tax Court issued a Memorandum Opinion in the case of Clark v. Commissioner (T.C. Memo. 2021-114). The primary issue presented in Clark v. Commissioner was whether the petitioner fraudulently underreported his income. Held: Oh, dear God. The fraud! The Tax Court’s Summary of the Issue in Clark v. Commissioner And I quote: In 2011 through 2014, the years at issue, Robert S. Clark owned an auto body shop, rental properties,

Scott St. Amand October 14, 2021

Amended Returns

Harrington v. Commissioner
T.C. Memo. 2021-95

On July 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Harrington v. Commissioner (T.C. Memo. 2021-95). The primary issue presented in Harrington was whether the IRS’s assessment was assessment is barred by the three-year period of limitations in IRC § 6501(a), or whether the statute of limitations remained open due to fraud under IRC § 6501(c)(1). Summary1 “Sarah, I feel like I don’t even know you.” “It’s Vivian. Would

Scott St. Amand September 25, 2021

Bad Mr. Catlett

Catlett v. Commissioner
T.C. Memo. 2021-102

On August 16, 2021, the Tax Court issued a Memorandum Opinion in the case of Catlett v. Commissioner (T.C. Memo. 2021-102). The primary issue presented in Catlett v. Commissioner was whether the IRS satisfied its burdens of production and proof to dismiss the petition for lack of prosecution…because the petitioner died…in prison…on a 17 ½ year stint in the hoosegow for tax crimes and conspiracy to defraud the United States. Background to Catlett v. Commissioner Irvin

Scott St. Amand September 3, 2021

Badges of Fraud

Collins v. Commissioner
T.C. Memo. 2020-50

On April 23, 2020, the Tax Court issued a Memorandum Opinion in the case of Collins v. Commissioner (T.C. Memo. 2020-50). The issues before the court in Collins v. Commissioner were (1) whether petitioners were entitled to numerous categories of deductions and whether they provided substantiation to prove entitlement; (2) whether the petitioners are liable for additions to tax for failing to timely file their returns; and whether petitioner-husband is liable for the civil fraud

Scott St. Amand April 23, 2020

A Petitioner Named Dung

Tran v. Commissioner
T.C. Memo. 2020-27

On February 26, 2020, the Tax Court issued a Memorandum Opinion in the case of Tran v. Commissioner (T.C. Memo. 2020-27). The three primary issues presented in Tran v. Commissioner were (1) whether the IRS is barred by the doctrine of collateral estoppel from relitigating the petitioners’ tax liability for 2006; (2) whether the petitioners failed to report gross receipts on Schedule C (Profits or Loss From Business) with regard to their nail salons in

Scott St. Amand February 26, 2020

Badges of Fraud

Purvis v. Commissioner
T.C. Memo. 2020-13

On January 14, 2020, the Tax Court issued a Memorandum Opinion in the case of Purvis v. Commissioner (T.C. Memo. 2020-13). The issue presented in Purvis v. Commissioner was whether the IRS overcame their burden of proof to establish the petitioners’ liability for the taxes and the fraud penalty under IRC § 6663(a). What a crazy case… The Quick and Dirty Background of One of the Craziest Cases I’ve Ever Read (Purvis v. Commissioner) This

Scott St. Amand January 14, 2020