Penalties Under the Code
Accuracy Related Penalty

Sells v. Commissioner
T.C. Memo. 2021-12

On January 28, 2021, the Tax Court issued a Memorandum Opinion in the case of Sells v. Commissioner (T.C. Memo. 2021-12). The main issue presented in Sells v. Commissioner was whether the conservation easement deduction was appropriately denied, but it is the prior supervisory approval that we’ll focus on below. Background to the Penalty Issue in Sells v. Commissioner The IRS asserted penalties for both the conservation easement and the timber donation. However, the parties

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Scott St. Amand January 28, 2021
Penalties Under the Code
Early Withdrawal Penalty

Grajales v. Commissioner (156 T.C. No. 3)

On January 25, 2021, the Tax Court issued its opinion in Grajales v. Commissioner, 156 T.C. No. 3. The underlying issue presented in Grajales was whether prior written supervisory approval under IRC § 6751(b)(1) was required to assert the 10% IRC § 72(t) “exaction” for early distributions from a qualified retirement plan. Labels are for Cans Abraham Lincoln is credited for saying “How many legs does a dog have if you call his tail a

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Scott St. Amand January 25, 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
Immediate Supervisor

Patel v. Commissioner
T.C. Memo. 2020-133

On September 22, 2020, the Tax Court issued a Memorandum Opinion in the case of Patel v. Commissioner (T.C. Memo. 2020-133). The primary issue before the court in Patel v. Commissioner was whether the IRS secured timely prior written supervisory approval for the penalties at issue as required by IRC § 6751(b)(1). The (Purported) Background in Patel v. Commissioner I enter this case with a fair bit of skepticism, due in toto to Judge Jones’

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Scott St. Amand September 22, 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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Sells v. Commissioner
T.C. Memo. 2021-12

On January 28, 2021, the Tax Court issued a Memorandum Opinion in the case of Sells v. Commissioner (T.C. Memo. 2021-12). The main issue presented in Sells v. Commissioner was whether the conservation easement deduction was appropriately denied, but it is the prior supervisory approval that we’ll focus on below.

Read More »
Scott St. Amand January 28, 2021

Grajales v. Commissioner (156 T.C. No. 3)

On January 25, 2021, the Tax Court issued its opinion in Grajales v. Commissioner, 156 T.C. No. 3. The underlying issue presented in Grajales was whether prior written supervisory approval under IRC § 6751(b)(1) was required to assert the 10% IRC § 72(t) “exaction” for early distributions from a qualified

Read More »
Scott St. Amand January 25, 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

Patel v. Commissioner
T.C. Memo. 2020-133

On September 22, 2020, the Tax Court issued a Memorandum Opinion in the case of Patel v. Commissioner (T.C. Memo. 2020-133). The primary issue before the court in Patel v. Commissioner was whether the IRS secured timely prior written supervisory approval for the penalties at issue as required by IRC

Read More »
Scott St. Amand September 22, 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

Read More »
Scott St. Amand July 21, 2020