Income Tax Issues
Deductions

Geiman v. Commissioner
T.C. Memo. 2021-80

On June 30, 2021, the Tax Court issued a Memorandum Opinion in the case of Geiman v. Commissioner (T.C. Memo. 2021-80). The primary issue presented in Geiman v. Commissioner was whether the petitioner was a tax “itinerant” or whether he had a tax home, for purposes of unreimbursed business expenses. Background to Geiman v. Commissioner The petitioner is a union electrician who spent most of 2013 on jobs in various parts of Wyoming and Colorado.

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Scott St. Amand July 12, 2021
Income Tax Issues
Deductions

Nurumbi v. Commissioner
T.C. Memo. 2021-79

On June 30, 2021, the Tax Court issued a Memorandum Opinion in the case of Nurumbi v. Commissioner (T.C. Memo. 2021-79). The primary issue presented in Nurumbi v. Commissioner was whether the petitioner was subject to the heightened substantiation rules under IRC § 274(d), or whether the exception to such rules for vehicles for hire applied. Held:  Background to Nurumbi v. Commissioner The petitioner was an Uber pimp. He maintained a stable of Uber drivers

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Scott St. Amand July 12, 2021
Income Tax Issues
Deductions

Torres v. Commissioner
T.C. Memo. 2021-66

On June 2, 2021, the Tax Court issued a Memorandum Opinion in the case of Torres v. Commissioner (T.C. Memo. 2021-66). The issues presented in Torres v. Commissioner were whether the petitioner was entitled to reduce his flowthrough income from his wholly owned S corporation for a theft loss deduction pursuant to IRC § 165. Background to Torres v. Commissioner As of 2016, the petitioner was illiterate—whether because of an illness or because he didn’t ascribe

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Scott St. Amand June 21, 2021
Business Related Issues
Capitalization

Mylan Inc. v. Commissioner (156 T.C. No. 10)

On April 27, 2021, the Tax Court issued its opinion in Mylan Inc. v. Commissioner (156 T.C. No. 10). The underlying issues presented in Mylan Inc. v. Commissioner were (1) whether the legal expenses incurred in preparing notice letters to brand name drug companies of petitioner’s intent to make generic versions of its drugs as part of the FDA approval process to do the same were capital or ordinary expenses; and (2) whether the legal expenses

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Scott St. Amand June 20, 2021
Charitable Contributions

Montgomery-Alabama River LLC v. Commissioner
T.C. Memo. 2021-62

On May 17, 2021, the Tax Court issued a Memorandum Opinion in the case of Montgomery-Alabama River LLC v. Commissioner (T.C. Memo. 2021-62). The primary issue presented in Montgomery-Alabama River LLC v. Commissioner was whether the Tax Court should certify (to the Alabama Supreme Court) the question of whether, under Alabama law, the petitioner would be entitled to the full proceeds of any sale if the easement were extinguished. Basic Legal Framework in Montgomery-Alabama River LLC v.

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Scott St. Amand May 28, 2021
Income Tax Issues
Accuracy Related Penalty

Berry v. Commissioner
T.C. Memo. 2021-52

On May 5, 2021, the Tax Court issued a Memorandum Opinion in the case of Berry v. Commissioner (T.C. Memo. 2021-52). The primary issues presented in Berry v. Commissioner were whether certain amounts characterized as gross receipts of a company should actually be other income to the petitioners, whether the company is entitled to deduct racecar expenses, and whether or not the petitioners substantiated COGS or a depreciation deduction under IRC § 167(a). Background to Berry

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Scott St. Amand May 5, 2021
Income Tax Issues
Books and Records

Chancellor v. Commissioner
T.C. Memo. 2021-50

On May 4, 2021, the Tax Court issued a Memorandum Opinion in the case of Chancellor v. Commissioner (T.C. Memo. 2021-50). The primary issue presented in Chancellor v. Commissioner was whether the IRS erred in disallowing deductions the petitioner claimed for certain business expenses, charitable contributions, and state and local tax. Brief Background to Chancellor v. Commissioner Ms. Viola Chancellor, of Nevada, is a notary and a paralegal.  In 2015, she received $400 from her

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Scott St. Amand May 4, 2021
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Geiman v. Commissioner
T.C. Memo. 2021-80

On June 30, 2021, the Tax Court issued a Memorandum Opinion in the case of Geiman v. Commissioner (T.C. Memo. 2021-80). The primary issue presented in Geiman v. Commissioner was whether the petitioner was a tax “itinerant” or whether he had a tax home, for purposes of unreimbursed business expenses.

Read More »
Scott St. Amand July 12, 2021

Nurumbi v. Commissioner
T.C. Memo. 2021-79

On June 30, 2021, the Tax Court issued a Memorandum Opinion in the case of Nurumbi v. Commissioner (T.C. Memo. 2021-79). The primary issue presented in Nurumbi v. Commissioner was whether the petitioner was subject to the heightened substantiation rules under IRC § 274(d), or whether the exception to such

Read More »
Scott St. Amand July 12, 2021

Torres v. Commissioner
T.C. Memo. 2021-66

On June 2, 2021, the Tax Court issued a Memorandum Opinion in the case of Torres v. Commissioner (T.C. Memo. 2021-66). The issues presented in Torres v. Commissioner were whether the petitioner was entitled to reduce his flowthrough income from his wholly owned S corporation for a theft loss deduction

Read More »
Scott St. Amand June 21, 2021

Mylan Inc. v. Commissioner (156 T.C. No. 10)

On April 27, 2021, the Tax Court issued its opinion in Mylan Inc. v. Commissioner (156 T.C. No. 10). The underlying issues presented in Mylan Inc. v. Commissioner were (1) whether the legal expenses incurred in preparing notice letters to brand name drug companies of petitioner’s intent to make generic versions

Read More »
Scott St. Amand June 20, 2021

Montgomery-Alabama River LLC v. Commissioner
T.C. Memo. 2021-62

On May 17, 2021, the Tax Court issued a Memorandum Opinion in the case of Montgomery-Alabama River LLC v. Commissioner (T.C. Memo. 2021-62). The primary issue presented in Montgomery-Alabama River LLC v. Commissioner was whether the Tax Court should certify (to the Alabama Supreme Court) the question of whether, under Alabama

Read More »
Scott St. Amand May 28, 2021

Berry v. Commissioner
T.C. Memo. 2021-52

On May 5, 2021, the Tax Court issued a Memorandum Opinion in the case of Berry v. Commissioner (T.C. Memo. 2021-52). The primary issues presented in Berry v. Commissioner were whether certain amounts characterized as gross receipts of a company should actually be other income to the petitioners, whether the company

Read More »
Scott St. Amand May 5, 2021

Chancellor v. Commissioner
T.C. Memo. 2021-50

On May 4, 2021, the Tax Court issued a Memorandum Opinion in the case of Chancellor v. Commissioner (T.C. Memo. 2021-50). The primary issue presented in Chancellor v. Commissioner was whether the IRS erred in disallowing deductions the petitioner claimed for certain business expenses, charitable contributions, and state and local

Read More »
Scott St. Amand May 4, 2021