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 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, a large

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Amended Returns

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

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). Summary[1] “Sarah, I feel like I don’t even

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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 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 Irvin Hannis Catlett, Jr. was not

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Income Tax Issues
Abusive Tax Shelters

Ryder & Associates Inc. v. Commissioner (T.C. Memo. 2021-88)

On July 14, 2021, the Tax Court issued a Memorandum Opinion in the case of Ryder & Associates Inc. v. Commissioner (T.C. Memo. 2021-88). The primary issues presented in Ryder & Associates were whether the petitioners received unreported gross receipts from their company, and whether the petitioners had significant unreported dividend income. Author’s Note on Ryder & Associates As I mentioned earlier this year, I have never seen it bode well for a petitioner to whom

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Procedural Issues
Bad Debt Deductions

Kelly v. Commissioner (T.C. Memo. 2021-76)

On June 28, 2021, the Tax Court issued a Memorandum Opinion in the case of Kelly v. Commissioner (T.C. Memo. 2021-76). The primary issues presented in Kelly were whether transfers from a company to the petitioner were loans, and if so, whether the petitioner received taxable distributions or cancellation of indebtedness (COD) income when the loans were cancelled. Background The petitioner was a 50% owner of Lucky Bastard Records. As of December 2007, Lucky Bastard

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Bad Mr. Bell

Bell Capital Management Inc. v. Commissioner (T.C. Memo. 2021-74)

Bell Capital Management, Inc. v. Commissioner (T.C. Memo. 2021-74) On June 14, 2021, the Tax Court issued a Memorandum Opinion in the case of Bell Capital Management, Inc.v. Commissioner (T.C. Memo. 2021-74). The primary issues presented in Bell Capital Management, Inc. were whether (1) petitioner is collaterally estopped from denying that it was responsible for paying the employment taxes; (2) whether the IRS properly determined that Ron H. Bell should be legally classified as petitioner’s

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Burden of Proof

Jenkins v. Commissioner (T.C. Memo. 2021-54)

On May 10, 2021, the Tax Court issued a Memorandum Opinion in the case of Jenkins v. Commissioner (T.C. Memo. 2021-54). The primary issues presented in Jenkins was whether the IRS has proven fraud, and the amount of unreported income for the consolidated petitioners. Just a Head’s Up This opinion by Judge Holmes contains a “waddle” of penguins that speak in French, a forged Kerguelenois diplomatic passport, and a simile comparing the IRS to a

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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 was whether the petitioner fraudulently underreported his income. Held:  Oh, dear God.  The fraud! The Tax Court’s Summary of the Issue in Clark

Read More »

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

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

Read More »

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 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

Read More »

Ryder & Associates Inc. v. Commissioner (T.C. Memo. 2021-88)

On July 14, 2021, the Tax Court issued a Memorandum Opinion in the case of Ryder & Associates Inc. v. Commissioner (T.C. Memo. 2021-88). The primary issues presented in Ryder & Associates were whether the petitioners received unreported gross receipts from their company, and whether the petitioners had significant unreported dividend

Read More »

Kelly v. Commissioner (T.C. Memo. 2021-76)

On June 28, 2021, the Tax Court issued a Memorandum Opinion in the case of Kelly v. Commissioner (T.C. Memo. 2021-76). The primary issues presented in Kelly were whether transfers from a company to the petitioner were loans, and if so, whether the petitioner received taxable distributions or cancellation of

Read More »

Bell Capital Management Inc. v. Commissioner (T.C. Memo. 2021-74)

Bell Capital Management, Inc. v. Commissioner (T.C. Memo. 2021-74) On June 14, 2021, the Tax Court issued a Memorandum Opinion in the case of Bell Capital Management, Inc.v. Commissioner (T.C. Memo. 2021-74). The primary issues presented in Bell Capital Management, Inc. were whether (1) petitioner is collaterally estopped from denying

Read More »

Jenkins v. Commissioner (T.C. Memo. 2021-54)

On May 10, 2021, the Tax Court issued a Memorandum Opinion in the case of Jenkins v. Commissioner (T.C. Memo. 2021-54). The primary issues presented in Jenkins was whether the IRS has proven fraud, and the amount of unreported income for the consolidated petitioners. Just a Head’s Up This opinion

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