Business Related Issues
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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Scott St. Amand April 26, 2021
Business Related Issues
Burden of Proof

Berry v. Commissioner
T.C. Memo. 2021-42

On April 7, 2021, the Tax Court issued a Memorandum Opinion in the case of Berry v. Commissioner (T.C. Memo. 2021-42). The primary issues presented in Berry v. Commissioner were whether the petitioners S corporation underreported its income, whether the petitioners’ S corporation is entitled to certain claimed deductions, whether the petitioners are entitled to certain claimed deductions, and whether the petitioners are liable for accuracy-related penalties under IRC § 6662. Background to Berry v.

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Scott St. Amand April 7, 2021
Penalties Under the Code
Abuse of Discretion

Smith v. Commissioner
T.C. Memo. 2021-29

On March 10, 2021, the Tax Court issued a Memorandum Opinion in the case of Smith v. Commissioner (T.C. Memo. 2021-29). The primary issues presented in Smith v. Commissioner were whether a photocopy of an original purported return, for which the IRS has no record and on which the petitioner expects the IRS to act in making a refund, purports to be a return of income tax, and whether the petitioner was liable for the

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Scott St. Amand March 10, 2021
Penalties Under the Code
Dammit Felicia

Mathews v. Commissioner
T.C. Memo. 2021-28

On March 9, 2021, the Tax Court issued a Memorandum Opinion in the case of Mathews v. Commissioner (T.C. Memo. 2021-28). The primary issue presented in Mathews was whether the petitioner was entitled to car and truck expenses which were incurred driving from his residence to the location of his employer, a trucking company. General Rule in Mathews v. Commissioner As a general rule, expenses for traveling between one’s home and one’s place of business

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Scott St. Amand March 9, 2021
Charitable Contributions

Pankratz v. Commissioner
T.C. Memo. 2021-26

On March 3, 2021, the Tax Court issued a Memorandum Opinion in the case of Pankratz v. Commissioner (T.C. Memo. 2021-26). The primary issue presented in Pankratz v. Commissioner was whether the failure to attach appraisals can be due to reasonable cause when a taxpayer admits that he did not review his tax returns before filing. Introductory Notes: I cannot say for sure whether the return preparers were actually the fire chief and the village

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Scott St. Amand March 3, 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
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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 »
Scott St. Amand April 26, 2021

Berry v. Commissioner
T.C. Memo. 2021-42

On April 7, 2021, the Tax Court issued a Memorandum Opinion in the case of Berry v. Commissioner (T.C. Memo. 2021-42). The primary issues presented in Berry v. Commissioner were whether the petitioners S corporation underreported its income, whether the petitioners’ S corporation is entitled to certain claimed deductions, whether

Read More »
Scott St. Amand April 7, 2021

Smith v. Commissioner
T.C. Memo. 2021-29

On March 10, 2021, the Tax Court issued a Memorandum Opinion in the case of Smith v. Commissioner (T.C. Memo. 2021-29). The primary issues presented in Smith v. Commissioner were whether a photocopy of an original purported return, for which the IRS has no record and on which the petitioner

Read More »
Scott St. Amand March 10, 2021

Mathews v. Commissioner
T.C. Memo. 2021-28

On March 9, 2021, the Tax Court issued a Memorandum Opinion in the case of Mathews v. Commissioner (T.C. Memo. 2021-28). The primary issue presented in Mathews was whether the petitioner was entitled to car and truck expenses which were incurred driving from his residence to the location of his

Read More »
Scott St. Amand March 9, 2021

Pankratz v. Commissioner
T.C. Memo. 2021-26

On March 3, 2021, the Tax Court issued a Memorandum Opinion in the case of Pankratz v. Commissioner (T.C. Memo. 2021-26). The primary issue presented in Pankratz v. Commissioner was whether the failure to attach appraisals can be due to reasonable cause when a taxpayer admits that he did not

Read More »
Scott St. Amand March 3, 2021

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