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 United States Tax Court, in a summary opinion, held that a doctor and his wife weren’t entitled to business expense deductions for their Amway distribution activity, finding that the activity wasn’t conducted in a businesslike manner or with the requisite profit objective; the court declined to hold them liable for an accuracy-related penalty.

AMER MIKHAIL AND MARIANA MIKHAIL,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE, Respondent

T.C. Summ. Op. 2014-40

 

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