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

Collection Action Against Couple Was Proper, United States Tax Court Says

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, in a summary opinion, held that the IRS didn’t abuse its discretion in sustaining a collection action against a couple that reported no tax liability and claimed deductions for charitable contributions, the business use of their home, and $473,309 in casualty or theft losses, finding that the couple failed to participate in their Collection Due Process hearing.

ROBERT CARTER, JR. AND LOLA CARTER,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Summ. Op. 2016-38

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

IRS Fails to Prove Fraudulent Intent; Fraud Penalties Inapplicable

The United States Tax Court held that the IRS failed to prove a couple’s fraudulent intent in underpaying their taxes, and they are not liable for fraud penalties; the court sustained an accuracy-related penalty for negligence, finding that they understated their tax liability for one year by failing to report income and claiming unsubstantiated deductions.

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.

JAMES A. ERICSON AND REBECCA A. ERICSON,
Petitioners v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2016-107

 

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

United States Tax Court Sustains Lien and Levy to Collect Company’s Unpaid Employment Taxes

The United States Tax Court held that the IRS Appeals Office did not abuse its discretion by sustaining the filing of a notice of federal tax lien and a proposed levy against a company for unpaid employment taxes, finding that the company wasn’t entitled to challenge the underlying tax liabilities because it had a prior opportunity to do so.

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.

LG KENDRICK, LLC,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2016-22

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

No IRS Abuse of Discretion by Appeals Settlement Offer in Rejecting Offer in Compromise, Proceeding With Collection

The United States Tax Court sustained a proposed IRS collection action against an individual and upheld the IRS’s rejection of his offer in compromise, finding no abuse of discretion by the IRS because the individual’s offer was well below his reasonable collection potential, which included dissipated retirement account assets.

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.

ERIC EDWARD CHANDLER,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-215

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

United States Tax Court Upholds Levy Action, Rejection of Installment Agreement, and Finds No IRS Abuse of Discretion

The United States Tax Court held that an IRS settlement officer in the Appeals Office didn’t abuse his discretion by rejecting a couple’s proposed installment agreement and sustaining a levy action against them because they had sufficient equity in their assets to pay the taxes, they failed to offer acceptable collection alternatives, and they had a history of noncompliance.

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.

RANDY TILLERY AND RACHEL BENATOR,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-170