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

No IRS Abuse of Discretion by IRS Appeals Office and Couple Penalized for Frivolous Arguments in Collection Challenge

The United States Tax Court upheld the IRS’s determination to sustain a notice of federal tax lien filing against a couple and imposed a $3,500 penalty against them for advancing frivolous arguments, finding that the IRS’s decision to sustain its proposed collection action was proper as a matter of law. Summary Judgment granted.

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.

GEORGE H. PATTON AND FELOMINA F. PATTON,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-75

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

The United States Tax Court Upholds Tax Lien Filing, Imposes Sanction for Delay Penalty

The United States Tax Court, citing its reasoning in a related levy case, upheld an IRS determination to proceed with the filing of a notice of federal tax lien against an individual and imposed a $20,000 penalty under code section 6673 because the individual raised the same frivolous arguments that he raised in his prior case.

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.

ALVIN SHELDON KANOFSKY,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-70

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

The United States Tax Court Holds Restaurant Owner Fraudulently Underpaid Taxes

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 civil fraud penalties applied to a restaurant owner’s tax underpayments, finding that several badges of fraud were present to support a determination that his underpayments were due to fraud; however, the court allowed some additional business expense deductions for nonemployee compensation.

ALAA I. MUSA,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-58

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

The United States Tax Court Upholds Notice of Federal Tax Lien Filing

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 the IRS Appeals Office didn’t abuse its discretion in determining to sustain a notice of federal tax lien filing against an individual, finding that Petitioner couldn’t challenge most of his underlying tax liabilities, he didn’t properly raise other issues during his hearing, and he didn’t show that overpayments of tax weren’t properly applied.

WALTER THORWALD SKALLERUP 3RD,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-48

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

A Prior Bankruptcy Decision Bars Challenge to Tax Deficiency and Innocent Spouse Relief

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, sustaining a collection action, held that the doctrine of res judicata bars a married couple from challenging the timeliness and validity of notices of deficiency, finding that those issues were previously resolved during bankruptcy proceedings, and that res judicata also bars the wife from seeking innocent spouse relief.

RICHARD E. SNYDER AND MARION B. SNYDER,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

RICHARD E. SNYDER AND MARION SNYDER,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-26

 

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

Income Tax Return Preparer Liable for Deficiencies, Fraud Penalties

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 income tax return preparer underreported her income, overstated her tax withholdings, and is liable for the 75% civil fraud penalties, finding that her failure to respond to the affirmative allegations in the IRS’s answer to her petition resulted in deemed admissions that supported her liability for the deficiencies and fraud penalties.

YVONNE K. YOUNG,
Petitioner
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

T.C. Memo. 2015-18

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

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