Challenging Underlying Liability

Cashaw v. Commissioner (T.C. Memo. 2021-123)

On October 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Cashaw v. Commissioner (T.C. Memo. 2021-123). The primary issue presented in Cashaw was whether the petitioner is liable for trust fund recovery penalties. Held: Yup. Background to Cashaw v. Commissioner The petitioner was presented with difficult choices during her tenure as temporary chief administrator of a hospital. The hospital was under a state order freezing its bank accounts except for

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Employee

A Primer on Employment Tax Withholding

When the IRS is involved, monetary transactions are never as simple as they appear on the surface. The late, great comedian Mitch Hedberg once told a story about being given a receipt after buying a doughnut. I bought a doughnut, and they gave me a receipt for the doughnut. I don’t need a receipt for the doughnut. I’ll just give you the money, and you give me the doughnut, end of transaction. We don’t need

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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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Procedural Issues
CDP

Barnhill v. Commissioner (155 T.C. No. 1)

On July 21, 2020, the Tax Court issued its opinion in Barnhill v. Commissioner, 155 T.C. No. 1. The issue presented in Barnhill is whether a taxpayer, who receives a Letter 1153 (Trust Fund Recovery Penalty (TFRP) Letter), and who timely appeals the TFRP, but who does not receive a meaningful opportunity to challenge his liability for the TFRP (because the taxpayer, for instance and as here, did not receive subsequent correspondence scheduling a meeting

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CDP

Lambert v. Commissioner (T.C. Memo. 2020-53)

On May 6, 2020, the Tax Court issued a Memorandum Opinion in the case of Lambert v. Commissioner (T.C. Memo. 2020-53). The basic issue before the court in Lambert was whether the Tax Court had jurisdiction to hear the petitioner’s arguments regarding his underlying liability for tax and the trust fund recovery penalty (TFRP).

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CDP

Shepherd v. Commissioner (T.C. Memo. 2020-45)

On April 13, 2020, the Tax Court issued a Memorandum Opinion in the case of Shepherd v. Commissioner (T.C. Memo. 2020-45). The issue properly before the court in Shepherd was whether Appeals correctly determined that the petitioner was barred from challenging his liability for the TFRPs even though he did not receive a notice of deficiency, because he had a prior opportunity to challenge his liability but failed to do so during his first administrative

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"Penalty" Means "Penalty"

Chadwick v. Commissioner (154 T.C. No. 5)

On January 21, 2020, the Tax Court issued its opinion in Chadwick v. Commissioner, 154 T.C. No. 5. The issue presented in Chadwick was whether the penalty assessable pursuant to IRC § 6672(a) (the Trust Fund Recovery Penalty or TFRP) was subject to the requirement that written supervisory approval be secured at the initial determination of such assessment pursuant to IRC § 6751(b)(1). The IRC § 6672(a) Trust Fund Recovery Penalty is…Wait for It…a Penalty

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Cashaw v. Commissioner (T.C. Memo. 2021-123)

On October 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Cashaw v. Commissioner (T.C. Memo. 2021-123). The primary issue presented in Cashaw was whether the petitioner is liable for trust fund recovery penalties. Held: Yup. Background to Cashaw v. Commissioner The petitioner was presented with

Read More »

A Primer on Employment Tax Withholding

When the IRS is involved, monetary transactions are never as simple as they appear on the surface. The late, great comedian Mitch Hedberg once told a story about being given a receipt after buying a doughnut. I bought a doughnut, and they gave me a receipt for the doughnut. I

Read More »

Barnhill v. Commissioner (155 T.C. No. 1)

On July 21, 2020, the Tax Court issued its opinion in Barnhill v. Commissioner, 155 T.C. No. 1. The issue presented in Barnhill is whether a taxpayer, who receives a Letter 1153 (Trust Fund Recovery Penalty (TFRP) Letter), and who timely appeals the TFRP, but who does not receive a

Read More »

Lambert v. Commissioner (T.C. Memo. 2020-53)

On May 6, 2020, the Tax Court issued a Memorandum Opinion in the case of Lambert v. Commissioner (T.C. Memo. 2020-53). The basic issue before the court in Lambert was whether the Tax Court had jurisdiction to hear the petitioner’s arguments regarding his underlying liability for tax and the trust

Read More »

Shepherd v. Commissioner (T.C. Memo. 2020-45)

On April 13, 2020, the Tax Court issued a Memorandum Opinion in the case of Shepherd v. Commissioner (T.C. Memo. 2020-45). The issue properly before the court in Shepherd was whether Appeals correctly determined that the petitioner was barred from challenging his liability for the TFRPs even though he did

Read More »

Chadwick v. Commissioner (154 T.C. No. 5)

On January 21, 2020, the Tax Court issued its opinion in Chadwick v. Commissioner, 154 T.C. No. 5. The issue presented in Chadwick was whether the penalty assessable pursuant to IRC § 6672(a) (the Trust Fund Recovery Penalty or TFRP) was subject to the requirement that written supervisory approval be

Read More »