Income Tax Issues
Employee

Blossom Day Care Centers Inc. v. Commissioner (T.C. Memo. 2021-86)

On July 13, 2021, the Tax Court issued a Memorandum Opinion in the case of Blossom Day Care Centers, Inc. v. Commissioner (T.C. Memo. 2021-86). The issues presented in Blossom Day Care Centers, Inc. were whether: (1) the day care’s corporate officers should be legally classified as employees of petitioner such that petitioner is liable for employment tax (FICA) and unemployment tax (FUTA); (2) petitioner was liable for FICA and FUTA taxes; (3) petitioner was

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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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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 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 In 2013, Ronald Berry and

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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 As a general rule, expenses for traveling between one’s home and one’s place of business or employment are commuting

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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 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 idiot, but

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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 was whether the civil fraud penalty was not timely approved pursuant to IRC § 6751(b)(1). Background 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 presented the petitioners with a completed,

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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 was whether the petitioner was liable for penalties under IRC § 6702. The Letter Return 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 that the affidavit is my return

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Blossom Day Care Centers Inc. v. Commissioner (T.C. Memo. 2021-86)

On July 13, 2021, the Tax Court issued a Memorandum Opinion in the case of Blossom Day Care Centers, Inc. v. Commissioner (T.C. Memo. 2021-86). The issues presented in Blossom Day Care Centers, Inc. were whether: (1) the day care’s corporate officers should be legally classified as employees of petitioner

Read More »

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 were whether the petitioners S corporation underreported its income, whether the petitioners’ S corporation is entitled to certain claimed deductions, whether the petitioners

Read More »

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 »

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 was whether the failure to attach appraisals can be due to reasonable cause when a taxpayer admits that he did not review his

Read More »

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 was whether the civil fraud penalty was not timely approved pursuant to IRC § 6751(b)(1). Background The petitioners filed a joint return for 2011.  The IRS

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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 was whether the petitioner was liable for penalties under IRC § 6702. The Letter Return On December 1, 2014, the petitioner sent the

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