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

No IRS Abuse of Discretion in Denying Non-compliant Couple’s Installment Agreement

The United States Tax Court held that an IRS settlement officer didn’t abuse her discretion by rejecting a couple’s proposed installment agreement and sustaining a proposed levy action, finding that the couple failed to make sufficient estimated tax payments, was not in compliance with current tax obligations, and 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.

ANDREW M. HULL AND VICKIE J. HULL,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-86

 

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

The United States Tax Court Overturns Levy and finds Abuse of Discretion Due to Appeals Settlement Officer’s Errors

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 abused his discretion by sustaining a proposed levy against an estate, finding that the settlement officer’s “clearly erroneous view of law and assessment of the facts” was not a harmless error, and that his refusal to meaningfully consider collection alternatives denied the estate a fair hearing.

ESTATE OF MARTHA E. SANFILIPPO, DECEASED,
WILLIAM J. SNYDER, EXECUTOR,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-15

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

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 Tax Court, sustaining late-filing and accuracy-related penalties, held that an individual wasn’t a real estate professional and losses from his rental activity were subject to the passive activity limitations of section 469, finding that he failed to show that he spent more time on his rental activity than on other income-producing activities.

GUILLERMO MERINO, JR., AND LISA MERINO,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

 

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

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 Tax Court held that an individual wasn’t entitled to deduct as alimony a lump sum payment to his former wife made under a mediation agreement, finding that under Florida contract law the obligation to make the payment would not have terminated on either party’s death and therefore did not meet the requirement of section 71(b)(1)(D).

JOHN D. NYE AND ROSE M. NYE,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

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

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 Tax Court, finding no abuse of discretion by the IRS in sustaining a proposed levy, held that an individual deliberately failed to claim a certified letter informing him of the proposed assessment of trust fund recovery penalties against him and, thus, couldn’t challenge the liability in his collection due process hearing.

CESARE GIAQUINTO, Petitioner
                   v.
COMMISSIONER OF INTERNAL REVENUE, Respondent

T.C. Memo. 2013-150 June 12, 2013