Income Tax Issues
Burden of Proof

Blum v. Commissioner
T.C. Memo. 2021-18

On February 18, 2021, the Tax Court issued a Memorandum Opinion in the case of Blum v. Commissioner (T.C. Memo. 2021-18). The primary issue presented in Blum v. Commissioner was whether the petitioner was entitled to exclude from her gross income the $125,000 settlement payment (from a suit against former attorneys who bungled a personal injury lawsuit on petitioner’s behalf) as damages received “on account of personal physical injuries or physical sickness” under IRC §

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Scott St. Amand February 18, 2021
Penalties Under the Code
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 v. Commissioner 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 to Kramer v. Commissioner The petitioners are not what you would call “cooperative” or “responsible” taxpayers. Although they brought petition

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Scott St. Amand February 16, 2021
Business Related Issues
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 v. Commissioner was whether the petitioners’ real estate loss deductions were disallowed by IRC § 469 and/or IRC § 280A. Background to Lucero v. Commissioner The petitioner-husband owned a short-term rental property in The Sea Ranch, California. To be clear, the property was not in Sea Ranch,

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Scott St. Amand September 29, 2020
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
Business Related Issues
Burden of Proof

Simpson v. Commissioner
T.C. Memo. 2020-100

On July 7, 2020, the Tax Court issued a Memorandum Opinion in the case of Simpson v. Commissioner (T.C. Memo. 2020-100). The issue before the court in Simpson v. Commissioner was whether the petitioners were allowed deductions for unreimbursed partnership expenses (2012-2014) and unreimbursed employee business expenses (2014), which deductions were adjusted in the IRS’s amended answer. Background to Simpson v. Commissioner The IRS issued the petitioners a notice of deficiency for tax years 2012,

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Scott St. Amand July 7, 2020
Business Related Issues
Burden of Proof

Sellers v. Commissioner (T.C. Memo. 2020-84)

On June 15, 2020, the Tax Court issued a Memorandum Opinion in the case of Sellers v. Commissioner (T.C. Memo. 2020-84). The primary issue before the court in Sellers v. Commissioner was whether the petitioner provided sufficient evidence to substantiate his bases in certain companies and his material participation (for passive activity loss purposes). This case also presents a very interesting question of whether the burden of proof really shifts to the IRS to prove

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Scott St. Amand June 15, 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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Blum v. Commissioner
T.C. Memo. 2021-18

On February 18, 2021, the Tax Court issued a Memorandum Opinion in the case of Blum v. Commissioner (T.C. Memo. 2021-18). The primary issue presented in Blum v. Commissioner was whether the petitioner was entitled to exclude from her gross income the $125,000 settlement payment (from a suit against former

Read More »
Scott St. Amand February 18, 2021

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 v. Commissioner were whether the petitioners were in default and whether the IRS carried its various burdens of production and proof with respect

Read More »
Scott St. Amand February 16, 2021

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 v. Commissioner was whether the petitioners’ real estate loss deductions were disallowed by IRC § 469 and/or IRC § 280A. Background to

Read More »
Scott St. Amand September 29, 2020

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

Simpson v. Commissioner
T.C. Memo. 2020-100

On July 7, 2020, the Tax Court issued a Memorandum Opinion in the case of Simpson v. Commissioner (T.C. Memo. 2020-100). The issue before the court in Simpson v. Commissioner was whether the petitioners were allowed deductions for unreimbursed partnership expenses (2012-2014) and unreimbursed employee business expenses (2014), which deductions

Read More »
Scott St. Amand July 7, 2020

Sellers v. Commissioner (T.C. Memo. 2020-84)

On June 15, 2020, the Tax Court issued a Memorandum Opinion in the case of Sellers v. Commissioner (T.C. Memo. 2020-84). The primary issue before the court in Sellers v. Commissioner was whether the petitioner provided sufficient evidence to substantiate his bases in certain companies and his material participation (for

Read More »
Scott St. Amand June 15, 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