Accuracy Related Penalty

Pickens Decorative Stone LLC v. Commissioner
T.C. Memo. 2022-22

On March 17, 2022, the Tax Court issued a Memorandum Opinion in the case of Pickens Decorative Stone LLC v. Commissioner (T.C. Memo. 2022-22). The primary issues presented in Pickens Decorative Stone LLC v. Commissioner were (1) whether the taxpayer was entitled to qualified charitable contribution deduction for claimed easement, and (2) whether the IRS revenue agent secured timely supervisory approval from supervisor, as required for imposition of accuracy-related penalties due to substantial understatement of

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Scott St. Amand November 14, 2022
Procedural Issues
Assessable Penalties

Current Developments on Prior Written Supervisory Approval under IRC § 6751(b)(1)

The Statute No penalty under the Code[1] may be assessed unless the initial determination of such assessment is personally approved in writing by the immediate supervisor of the individual/agent making such determination (or another appropriate higher-level official).[2] This approval requirement, introduced in 1998, was the subject of only three substantial decisions prior to 2020. This year, however, was a boon for taxpayers, and the full opinions of the Tax Court defined the metes and bounds

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Scott St. Amand April 30, 2021
Penalties Under the Code
Form 4549

Beland v. Commissioner
156 T.C. No. 5

On March 1, 2021, the Tax Court issued its opinion in Beland v. Commissioner (156 T.C. No. 5). The underlying issue presented in Beland v. Commissioner was whether the civil fraud penalty was not timely approved pursuant to IRC § 6751(b)(1). Background to Beland v. Commissioner The petitioners filed a joint return for 2011.  The IRS audited the return and required the petitioners to attend an in-person closing conference.  During the conference, the revenue agent

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Scott St. Amand March 1, 2021
Penalties Under the Code
CDP

Llanos v. Commissioner
T.C. Memo. 2021-21

On February 22, 2021, the Tax Court issued a Memorandum Opinion in the case of Llanos v. Commissioner (T.C. Memo. 2021-21). The primary issue presented in Llanos v. Commissioner was whether the petitioner was liable for penalties under IRC § 6702. The Letter Return in Llanos v. Commissioner On December 1, 2014, the petitioner sent the IRS a letter entitled “Request for Audit Reconsideration for 2010, 2011, and 2012”. The letter states: “I fully intend

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Scott St. Amand February 22, 2021
Procedural Issues
Accuracy Related Penalty

Oropeza v. Commissioner
155 T.C. No. 9

On October 13, 2020, the Tax Court issued its opinion in Oropeza v. Commissioner (155 T.C. No. 9). The primary issue presented in Oropeza v. Commissioner was whether the IRS obtained prior supervisory approval pursuant to IRC § 6751(b)(1) prior to its initial determination to assess a penalty against the petitioner for tax year 2011.  Specifically, the issue in Oropeza v. Commissioner was whether a Letter 5153 accompanied by a Form 4549-A (an RAR) constituted

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Scott St. Amand October 13, 2020
Penalties Under the Code
30-Day Letter

Thompson v. Commissioner
155 T.C. No. 5

On August 27, 2020, the Tax Court issued its opinion in Thompson v. Commissioner (155 T.C. No. 5). The primary issue presented in Thompson v. Commissioner was whether the offer of settlement of the petitioners’ tax liabilities under reduced penalty rates on any later-determined underpayment arising out of an abusive tax transaction was an “initial determination” of a penalty for purposes of IRC § 6751(b)(1)’s prior written supervisory approval requirement. Background to Thompson v. Commissioner The

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Scott St. Amand August 27, 2020
Penalties Under the Code
Burden of Proof

Oropeza v. Commissioner
T.C. Memo. 2020-111

On July 21, 2020, the Tax Court issued a Memorandum Opinion in the case of Oropeza v. Commissioner (T.C. Memo. 2020-111). The primary issue before the court in Oropeza v. Commissioner was whether IRS secured timely written supervisory approval, as required by IRC § 6751(b)(1), for three penalties determined in the notice of deficiency for petitioners’ 2012 tax year. The Initial Determination in Oropeza v. Commissioner In November 2015, the IRS sent petitioners a Letter

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Scott St. Amand July 21, 2020
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Pickens Decorative Stone LLC v. Commissioner
T.C. Memo. 2022-22

On March 17, 2022, the Tax Court issued a Memorandum Opinion in the case of Pickens Decorative Stone LLC v. Commissioner (T.C. Memo. 2022-22). The primary issues presented in Pickens Decorative Stone LLC v. Commissioner were (1) whether the taxpayer was entitled to qualified charitable contribution deduction for claimed easement,

Read More »
Scott St. Amand November 14, 2022

Beland v. Commissioner
156 T.C. No. 5

On March 1, 2021, the Tax Court issued its opinion in Beland v. Commissioner (156 T.C. No. 5). The underlying issue presented in Beland v. Commissioner was whether the civil fraud penalty was not timely approved pursuant to IRC § 6751(b)(1). Background to Beland v. Commissioner The petitioners filed a

Read More »
Scott St. Amand March 1, 2021

Llanos v. Commissioner
T.C. Memo. 2021-21

On February 22, 2021, the Tax Court issued a Memorandum Opinion in the case of Llanos v. Commissioner (T.C. Memo. 2021-21). The primary issue presented in Llanos v. Commissioner was whether the petitioner was liable for penalties under IRC § 6702. The Letter Return in Llanos v. Commissioner On December

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Scott St. Amand February 22, 2021

Oropeza v. Commissioner
155 T.C. No. 9

On October 13, 2020, the Tax Court issued its opinion in Oropeza v. Commissioner (155 T.C. No. 9). The primary issue presented in Oropeza v. Commissioner was whether the IRS obtained prior supervisory approval pursuant to IRC § 6751(b)(1) prior to its initial determination to assess a penalty against the

Read More »
Scott St. Amand October 13, 2020

Thompson v. Commissioner
155 T.C. No. 5

On August 27, 2020, the Tax Court issued its opinion in Thompson v. Commissioner (155 T.C. No. 5). The primary issue presented in Thompson v. Commissioner was whether the offer of settlement of the petitioners’ tax liabilities under reduced penalty rates on any later-determined underpayment arising out of an abusive tax

Read More »
Scott St. Amand August 27, 2020

Oropeza v. Commissioner
T.C. Memo. 2020-111

On July 21, 2020, the Tax Court issued a Memorandum Opinion in the case of Oropeza v. Commissioner (T.C. Memo. 2020-111). The primary issue before the court in Oropeza v. Commissioner was whether IRS secured timely written supervisory approval, as required by IRC § 6751(b)(1), for three penalties determined in

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Scott St. Amand July 21, 2020