Procedural Issues
Assessment

Procedural Considerations on Collection (Assessment) – Part Three: Termination and Jeopardy Assessments

In the first article in this series about collection and assessment, we explored the basics of assessment.  In the second article, we examined the nuances of deficiencies.  In this third article, we examine termination and jeopardy assessments. Termination Assessments If the IRS finds that a taxpayer aims to quickly do any act tending to prejudice or to render wholly or partially ineffectual proceedings to collect the income tax for the current or the immediately preceding

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Scott St. Amand April 29, 2021
Procedural Issues
90-Day Letter

Procedural Considerations on Collection (Assessment) – Part Two: Authority and Limits on Assessment

In the first article in this series about the IRS’s ability to assess tax and additions thereto, we explored the basics of assessment.  In this second article, we’ll examine deficiencies.  In the third article, we’ll examine termination and jeopardy assessments. Deficiencies, Generally For purposes of income, estate, gift, and excise taxes, a deficiency is the amount by which the tax imposed by the Code exceeds the amount of tax shown on the taxpayer’s return, plus

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Scott St. Amand April 29, 2021
Penalties Under the Code
Accuracy Related Penalty

Harriss v. Commissioner
T.C. Memo. 2021-31

On March 11, 2021, the Tax Court issued a Memorandum Opinion in the case of Harriss v. Commissioner (T.C. Memo. 2021-31). The primary issues presented in Harriss v. Commissioner were whether the notices of deficiency issued to the petitioners were valid and whether the petitioner is liable under IRC § 72(t) for the early withdrawal penalty. Shenanigans in Harriss v. Commissioner The petitioner was paid, on average, $150,000 in 2012, 2013, and 2014.  Forms 1099

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Scott St. Amand March 11, 2021
International Issues
Badaracco

Adams Challenge UK Limited v. Commissioner
156 T.C. No. 3

On January 25, 2021, the Tax Court issued its opinion in Adams Challenge UK Limited v. Commissioner (156 T.C. No. 3). The underlying issue presented in Adams Challenge UK Limited v. Commissioner was whether the IRS erred in disallowing the petitioner’s deductions and credits and whether the IRS’s action violated the business profits and the nondiscrimination articles of the bilateral income tax treaty between the United States and the U.K. Background to Adams Challenge UK Limited

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Scott St. Amand January 25, 2021
Penalties Under the Code
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 v. Commissioner 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

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Scott St. Amand July 13, 2020
Procedural Issues
Challenging Underlying Liability

Nguyen v. Commissioner
T.C. Memo. 2020-96

On June 30, 2020, the Tax Court issued a Memorandum Opinion in the case of Nguyen v. Commissioner (T.C. Memo. 2020-96). The basic, threshold issue before the court in Nguyen v. Commissioner was whether the petitioner may challenge his underlying liability in the Tax Court. Brief Background to Nguyen v. Commissioner the IRS sent, by certified mail, a notice of deficiency for the years in issue to the petitioner at his last-known address. The notice

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Scott St. Amand June 30, 2020
Income Tax Issues
Burden of Proof

Sage v. Commissioner (154 T.C. No. 12)

On June 2, 2020, the Tax Court issued its opinion in Sage v. Commissioner (154 T.C. No. 12). The issue presented in Sage v. Commissioner was whether the petitioner, who wholly owned an S corporation and LLC, which in turn owned (indirectly) and transferred three encumbered properties to separate liquidating trusts that disposed of the parcels with the profits going to pay off the liabilities of the S corporation and LLC, was the owner/grantor of

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Scott St. Amand June 2, 2020
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Harriss v. Commissioner
T.C. Memo. 2021-31

On March 11, 2021, the Tax Court issued a Memorandum Opinion in the case of Harriss v. Commissioner (T.C. Memo. 2021-31). The primary issues presented in Harriss v. Commissioner were whether the notices of deficiency issued to the petitioners were valid and whether the petitioner is liable under IRC §

Read More »
Scott St. Amand March 11, 2021

Adams Challenge UK Limited v. Commissioner
156 T.C. No. 3

On January 25, 2021, the Tax Court issued its opinion in Adams Challenge UK Limited v. Commissioner (156 T.C. No. 3). The underlying issue presented in Adams Challenge UK Limited v. Commissioner was whether the IRS erred in disallowing the petitioner’s deductions and credits and whether the IRS’s action violated the

Read More »
Scott St. Amand January 25, 2021

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 v. Commissioner was whether, because the petitioners’ debt to the bank was nonrecourse, the discharge of indebtedness was included in the

Read More »
Scott St. Amand July 13, 2020

Nguyen v. Commissioner
T.C. Memo. 2020-96

On June 30, 2020, the Tax Court issued a Memorandum Opinion in the case of Nguyen v. Commissioner (T.C. Memo. 2020-96). The basic, threshold issue before the court in Nguyen v. Commissioner was whether the petitioner may challenge his underlying liability in the Tax Court. Brief Background to Nguyen v.

Read More »
Scott St. Amand June 30, 2020

Sage v. Commissioner (154 T.C. No. 12)

On June 2, 2020, the Tax Court issued its opinion in Sage v. Commissioner (154 T.C. No. 12). The issue presented in Sage v. Commissioner was whether the petitioner, who wholly owned an S corporation and LLC, which in turn owned (indirectly) and transferred three encumbered properties to separate liquidating

Read More »
Scott St. Amand June 2, 2020