Accuracy Related Penalty

Plentywood Drug, Inc. v. Commissioner (T.C. Memo. 2021-45)

On April 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Plentywood Drug, Inc. v. Commissioner (T.C. Memo. 2021-45). The primary issues presented in Plentywood Drug, Inc. were whether the petitioner’s owners received “fair rent” or constructive dividends for the rental of the petitioner’s drug store, and whether the petitioner (a corporation) satisfied its burden to show that the IRS failed to receive prior supervisory approval for the accuracy-related penalties at

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Accuracy Related Penalty

Walton v. Commissioner (T.C. Memo. 2021-40)

On March 30, 2021, the Tax Court issued a Memorandum Opinion in the case of Walton v. Commissioner (T.C. Memo. 2021-40). The primary issue presented in Walton was whether the petitioner qualified for the reasonable cause exception to the imposition of an accuracy-related penalty. Background The petitioner was a New Yorker,[1] who failed to report $170,000 in nonemployee compensation in 2015. Strike one and two. The petitioner was terminated from her employment, and negotiated a

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Burden of Proof

Kramer v. Commissioner (T.C. Memo. 2021-16)

On February 16, 2021, the Tax Court issued a Memorandum Opinion in the case of Kramer v. Commissioner (T.C. Memo. 2021-16). The primary issues presented in Kramer were whether the petitioners were in default and whether the IRS carried its various burdens of production and proof with respect to the deficiencies asserted. Background The petitioners are not what you would call “cooperative” or “responsible” taxpayers. Although they brought petition seeking a redetermination of adjustments into

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Burden of Proof

Frost v. Commissioner (154 T.C. No. 2)

On January 7, 2020, the Tax Court issued its opinion in Frost v. Commissioner, 154 T.C. No. 2. The issue presented in Frost was whether the IRS satisfied the burden of production under IRC § 7491(c) in offering evidence of compliance with the requirement of IRC § 6751(b)(1) that the agent initially determining accuracy-related penalties obtained timely written supervisory approval to assert IRC § 6662(a) accuracy-related penalties against the petitioner. Parsing the Semantics: Burden of

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Books and Records

Lucero v. Commissioner (T.C. Memo. 2020-136)

On September 29, 2020, the Tax Court issued a Memorandum Opinion in the case of Lucero v. Commissioner (T.C. Memo. 2020-136). The issue before the court in Lucero was whether the petitioners’ real estate loss deductions were disallowed by IRC § 469 and/or IRC § 280A.

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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 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.

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Burden of Proof

Duffy v. Commissioner (T.C. Memo. 2020-108)

On July 13, 2020, the Tax Court issued a Memorandum Opinion in the case of Duffy v. Commissioner (T.C. Memo. 2020-108). The primary issue before the court in Duffy was whether, because the petitioners’ debt to the bank was nonrecourse, the discharge of indebtedness was included in the petitioners amount realized on the sale of the property and did not give rise to cancellation of indebtedness income under Treas. Reg. § 1.1001-2(a). A secondary issue

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Plentywood Drug, Inc. v. Commissioner (T.C. Memo. 2021-45)

On April 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Plentywood Drug, Inc. v. Commissioner (T.C. Memo. 2021-45). The primary issues presented in Plentywood Drug, Inc. were whether the petitioner’s owners received “fair rent” or constructive dividends for the rental of the petitioner’s drug store,

Read More »

Walton v. Commissioner (T.C. Memo. 2021-40)

On March 30, 2021, the Tax Court issued a Memorandum Opinion in the case of Walton v. Commissioner (T.C. Memo. 2021-40). The primary issue presented in Walton was whether the petitioner qualified for the reasonable cause exception to the imposition of an accuracy-related penalty. Background The petitioner was a New

Read More »

Kramer v. Commissioner (T.C. Memo. 2021-16)

On February 16, 2021, the Tax Court issued a Memorandum Opinion in the case of Kramer v. Commissioner (T.C. Memo. 2021-16). The primary issues presented in Kramer were whether the petitioners were in default and whether the IRS carried its various burdens of production and proof with respect to the

Read More »

Frost v. Commissioner (154 T.C. No. 2)

On January 7, 2020, the Tax Court issued its opinion in Frost v. Commissioner, 154 T.C. No. 2. The issue presented in Frost was whether the IRS satisfied the burden of production under IRC § 7491(c) in offering evidence of compliance with the requirement of IRC § 6751(b)(1) that the

Read More »

Lucero v. Commissioner (T.C. Memo. 2020-136)

On September 29, 2020, the Tax Court issued a Memorandum Opinion in the case of Lucero v. Commissioner (T.C. Memo. 2020-136). The issue before the court in Lucero was whether the petitioners’ real estate loss deductions were disallowed by IRC § 469 and/or IRC § 280A.

Read More »

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 was whether IRS secured timely written supervisory approval, as required by IRC § 6751(b)(1), for three penalties determined in the notice

Read More »

Duffy v. Commissioner (T.C. Memo. 2020-108)

On July 13, 2020, the Tax Court issued a Memorandum Opinion in the case of Duffy v. Commissioner (T.C. Memo. 2020-108). The primary issue before the court in Duffy was whether, because the petitioners’ debt to the bank was nonrecourse, the discharge of indebtedness was included in the petitioners amount

Read More »