United States Tax Court Decision for the Week – You be the Judge

IRS Settlement Officer  Did not Abuse Discretion in Properly Denying Installment Agreement Request 

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The  United States Tax Court held that an IRS settlement officer did not abuse her discretion in denying an individual an installment agreement and in sustaining a proposed collection action against him, explaining that the individual failed to submit requested financial information.

TIMOTHY FREDERICK WITMYER,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-17

United States Tax Court Decision for the Week – You be the Judge

The United States Tax Court Determines a Disbarred CPA Liable for Penalties for Fraud, Frivolous Arguments

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The United States Tax Court, imposing a $25,000 frivolous argument penalty, held that a CPA who was disbarred from practicing before the IRS is liable for additions to tax for fraudulent failure to file returns, finding that he had knowledge of his tax-paying responsibilities and failed to provide a nonfraudulent explanation for his behavior.

JOSEPH R. BANISTER,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

 

 

United States Tax Court Decision for the Week – You be the Judge

Tax Court Holds Pharmacist Liable for Taxes, and Penalties including the 75% Civil Fraud Penalty

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients. This is the latest Civil Fraud Tax Court Memorandum decision to be issued.

The United States Tax Court held that a pharmacist who was involved in the illegal distribution of hydrocodone had unreported income based on a bank deposits analysis and wasn’t entitled to business expense deductions or dependency exemptions; he was also liable for civil fraud penalties based upon clear and convincing evidence and additions to tax for failure to timely file returns and pay taxes.

STEVEN A. SODIPO,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-3