Business Related Issues
Tax Opinions

Complex Media Inc. v. Commissioner
T.C. Memo. 2021-14

On February 10, 2021, the Tax Court issued a Memorandum Opinion in the case of Complex Media Inc. v. Commissioner (T.C. Memo. 2021-14). The primary issue presented in Complex Media Inc. v. Commissioner  was whether a taxpayer was eligible to disavow the form of its transactions (an asset transfer) when the alternative form achieves a tax benefit “not inconsistent” with the taxpayer’s initial tax planning and structuring of the transactions. Background to Complex Media Inc.

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Scott St. Amand February 10, 2021
Procedural Issues
Tax Opinions

BM Construction v. Commissioner
T.C. Memo. 2021-13

On February 8, 2021, the Tax Court issued a Memorandum Opinion in the case of BM Construction v. Commissioner (T.C. Memo. 2021-13). The primary issue presented in BM Construction v. Commissioner was whether the IRS had satisfied its burden to prove that the letter in question was mailed and actually received for CDP purposes. Background to BM Construction v. Commissioner IRC § 3406 requires a payor to deduct and withhold tax from certain payments not

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Scott St. Amand February 8, 2021
Penalties Under the Code
Tax Opinions

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
Business Related Issues
Business Related Issues

Whatley v. Commissioner
T.C. Memo. 2021-11

On January 28, 2021, the Tax Court issued a Memorandum Opinion in the case of Whatley v. Commissioner (T.C. Memo. 2021-11). The issue presented in Whatley v. Commissioner was whether the petitioner’s tree or cattle farm (he can’t seem to decide which) was a trade or business during the years at issue. A Note on my Favorite Jurist, Judge Holmes The opinion begins by describing the petitioner as “a proud Auburn alumnus” who made the

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Scott St. Amand January 28, 2021
Penalties Under the Code
Tax Opinions

Reynolds v. Commissioner
T.C. Memo. 2021-10

On January 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Reynolds v. Commissioner (T.C. Memo. 2021-10). The issue presented in Reynolds v. Commissioner was whether the IRS possessed the collection authority under IRC § 6201(a)(4) to undertake administrative collection action to collect restitution-based assessments (RBAs). Note on “Precedent” to Reynolds v. Commissioner It should be noted that the argument the petitioner made in Reynolds was “squarely rejected” in the case

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Scott St. Amand January 26, 2021
Business Related Issues
Tax Opinions

Costello v. Commissioner
T.C. Memo. 2021-9

On January 25, 2021, the Tax Court issued a Memorandum Opinion in the case of Costello v. Commissioner (T.C. Memo. 2021-9). The primary issues presented in Costello v. Commissioner was whether the would-be-chicken-farmers (petitioners) were entitled to deductions for losses from farming activities, or whether the losses were startup expenses for which IRC § 195 prohibits a current deduction. Author’s Note Schadënfreude is German for happiness at the misfortune of others.  The Greek ἐπιχαιρεκακία is

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Scott St. Amand January 25, 2021
Business Related Issues
Tax Opinions

Aspro Inc. v. Commissioner
T.C. Memo. 2021-8

On January 21, 2021, the Tax Court issued a Memorandum Opinion in the case of Aspro Inc. v. Commissioner (T.C. Memo. 2021-8). The sole issue presented in Aspro Inc. v. Commissioner was whether the petitioner was entitled to deductions for management fees paid to three shareholders. Background to Aspro Inc. v. Commissioner I find the petitioner suspect.  First off, it is an Iowa C corporation, but it is not involved with the production or processing of

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Scott St. Amand January 21, 2021
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