Case law

William E. Flynn

United States Tax Court · Apr 13, 2021

When a taxpayer fails to keep records, the Commissioner has discretion to reconstruct the taxpayer’s income by any reasonable method that in the Commissioner’s opinion clearly reflects income. Sec. 446(b); Cole v. … Petitioner also presented no evidence that he qualified for any exception to the requirements for estimated tax payments under section 6654(e). Petitioner is therefore liable for the section 6654(a) additions to tax.

David Bruce Billings v. Commissioner

127 T.C. No. 2 · United States Tax Court · Jul 25, 2006

Billings and the Commissioner stipulated that he did not qualify for relief under either section 6015(b) or (c) because no deficiency was ever asserted against him and his wife. … If Congress had intended to limit the right to petition this Court in section 6015 cases only to those taxpayers who had received a notice of deficiency, it is beyond debate that Congress knew how to say so clearly and

Hathaway v. Commissioner

41 T.C.M. 1376 · United States Tax Court · Apr 27, 1981

I Ben Hathaway do qualify myself to be responsible for the delivery or in the event that the nuggets are not forth coming to be liable and responsible for said *548 moneys owed you. [Signed Ben H. … Respondent points out that the evidence clearly shows that on February 23, 1973, Dr. Putnam advanced $ 40,000 to petitioner.

Estate of Hedrick v. Commissioner

64 T.C.M. 249 · United States Tax Court · Jul 21, 1992

At that time, decedent encouraged Stevens to establish the contemplated organization as soon as possible. … Respondent determined that, with respect to the property reported on Schedule C and the property transferred to the trust, "a property interest qualifying for the marital deduction has not passed from the decedent to the

Alka Sham v. Commissioner

2020 T.C. Memo. 119 · United States Tax Court · Aug 12, 2020

“Business research and establishment” Ms. Sham claimed $4,790 as a deduction for business research and establishment for 2011 (and none for any other year at issue). … These facts are not in dispute and are sufficient to establish that the Commissioner has met his burden of production to establish Ms. Sham’s liability under section 6651(a)(1). Ms.

Robert Dean Mazotti & Debra Lea Jones-Mazotti

United States Tax Court · Jul 25, 2024

Although the relevant inquiry concerns a taxpayer’s subjective intent, objective evidence may be used to establish intent. Nickeson v. Commissioner, 962 F.2d 973, 976 (10th Cir. 1992), aff’g Brock v. Commissioner, T.C. … Even when a taxpayer devotes only limited time to an activity, if the taxpayer “employs competent and qualified persons to carry on such activity,” then that too may indicate a profit motive.

Rhoades Oil Co. v. Commissioner

50 T.C.M. 294 · United States Tax Court · Jul 1, 1985

However, all the evidence of record is clearly to the contrary. … Therefore, we do not think petitioner's "plans" to accumulate current earnings and profits to protect against "development contingencies" fail to qualify as "specific, definite, and feasible" *373 within the meaning of section

Marc White & Kelly White v. Commissioner

2018 T.C. Memo. 102 · United States Tax Court · Jul 3, 2018

And then, once their credit got good and they got squared away, they would take over the mortgage on the house when they could actually qualify for it. … Petitioners, however, never established that the Van Pattens did not receive income from other sources.

Sullivan v. Commissioner

76 T.C.M. 664 · United States Tax Court · Oct 8, 1998

)  - 28 - initial string of losses may qualify as a "startup" period, which suggests that later periods of losses may not so qualify. … Clearly, Mr. Sullivan's employment income allowed petitioners to sustain annual losses from their horse-related activities averaging $40,000 during these years.

Arnold v. Commissioner

1994 T.C. Memo. 97 · United States Tax Court · Mar 7, 1994

CMI was incorporated November 13, 1975, as a wholesale paper broker to establish a dependable source of supply for AGI's principal raw material, paper. … Respondent has clearly and convincingly demonstrated that what actually occurred *128 was that Arnold deposited CMI's proceeds from the sale of the 13,300 shares directly into his IRA account, stating to bank representatives

Luke v. Commissioner

23 T.C.M. 1022 · United States Tax Court · Jun 23, 1964

Arlington was incorporated to acquire and continue a business established in 1912. … Under the circumstances, a tax avoidance purpose is clearly to be inferred.

Reece v. Commissioner

36 T.C.M. 299 · United States Tax Court · Mar 16, 1977

trade or business apart from his corporate investment, losses arising from advances of funds to the corporation dominantly motivated by the protection of that independent trade or business and proximately related to it may qualify … Clearly, such terms indicate an expectation of future profits on the part of both R & W and Henning and not an attempt by petitioner to gracefully terminate his R & W investment.

Finney v. Commissioner

27 T.C.M. 1510 · United States Tax Court · Dec 5, 1968

The evidence establishes that the depreciable life of the board fence was five *46 years. Issue 9. … The portion of the legal fees incurred with respect to the dependency and medical items are clearly not deductible as business expenses.

Logan v. Commissioner

35 T.C.M. 646 · United States Tax Court · May 6, 1976

This sum was reinvested in qualified property, resulting in a nonrecognized gain of $ 14,712.57, after taking into account the *268 increase in cost basis (see pp. 16-17, infra.) … It is therefore necessary for us to establish the parameters by which the correct amount of depreciation for each item may be determined in the Rule 155 computation.

Malmstedt v. Commissioner

35 T.C.M. 199 · United States Tax Court · Feb 24, 1976

Whether or not the interest expense also qualifies as an ordinary and necessary business expense will be treated infra. ↩ 21. SEC. 172(d)(4) ↩ . Nonbusiness deductions of taxpayers others than corporations. … We recognize that Malmstedt and Johnson were technically not the principal obligors on the loans, but believe that the record clearly demonstrates that from the start they would ultimately be called upon to make any payments

Bender v. Commissioner

16 T.C.M. 502 · United States Tax Court · Jun 28, 1957

Bender owned 90 shares; Esther owned 9 shares; and 1 qualifying share was held by William Hackert. … Respondent's evidence clearly and convincingly establishes that a false and fraudulent return was filed for each year.

Doxtator v. Comm'r

89 T.C.M. 1259 · United States Tax Court · May 18, 2005

For such an exemption to be valid, it must be based upon clearly expressed language in a statute or treaty. Squire v. Capoeman, supra; United States v. … While the evidence establishes that Melinda Doxtator transferred $5,000 to Mr.

Geyer v. Comm'r

2013 T.C. Summary Opinion 90 · United States Tax Court · Nov 14, 2013

According to petitioners, they were more qualified to lead trips to Mexico because of their personal travels there. … Petitioners clearly devoted a substantial amount of time and effort in carrying out their travel guide activity.

Glassley v. Commissioner

71 T.C.M. 2898 · United States Tax Court · Apr 30, 1996

It has not been established that the accrual method of accounting clearly reflects the partnership income. 7. … , and their contacts with qualified technical experts.

Lang v. Commissioner

46 T.C.M. 335 · United States Tax Court · Jun 6, 1983

Thus, petitioner had no need for receipts from Lorin, except to establish clearly a cost basis in the bonds for purposes of respondent's audits. … He argues that the 1978 sale of the lot did not qualify for installment sales treatment. From this he concludes that no gain is reportable in 1980.