Case law

Girard v. Commissioner

68 T.C.M. 1148 · United States Tax Court · Nov 2, 1994

Where a taxpayer fails to keep records, or where the records do not accurately reflect income, "the computation of taxable income shall be made under such method as, in the opinion of the Secretary, does clearly reflect income … For 1989, in addition to being a student, the child of the taxpayer must also be under 24 years of age at the close of the taxable year to qualify under sec. 151(c) ↩ . 2.

Mark Feathers & Natalie E. Feathers

United States Tax Court · Sep 23, 2024

Feathers, and the corporation’s general ledger clearly identified the check numbers and the name of the recipient. These matched SBCC’s tax returns and the amounts the corporation had deducted. … We cannot find on the basis of this thin testimony that the accountants were provided with all the information necessary to prepare the returns or even that the accountants were qualified.

Berkley Machine Works & Foundry Co. v. Commissioner

27 T.C.M. 1487 · United States Tax Court · Dec 2, 1968

The record clearly shows that for the taxable year 1956 the disallowance included one-half of the salary paid to Angus Singletary, or $2,678.50, and we think it apparent that the respondent disallowed one-half of Singletary's … The fact that the corporation employed qualified accountants to audit its books and prepare its returns is not sufficient to relieve it of the negligence penalty imposed by section 6653(a) of the Code.

Ryan v. Commissioner

75 T.C.M. 1778 · United States Tax Court · Feb 12, 1998

Attorney's Office in exchange for immunity from further criminal prosecution. … Ryan used the phrase "I believe" to qualify many of his answers with respect to the Rizzo search.

Bowersock Mills & Power Co. v. Commissioner

6 T.C.M. 1106 · United States Tax Court · Oct 16, 1947

issued, in the name of said bank, both in trust as hereinafter stated, all the common and preferred stock of said Bowersock Mills & Power Company, except sufficient shares to quality directors, the certificates for which qualifying … together the $18,000 here involved constituted dividends upon preferred stock held by the Bowerstock Trust rather than interest on indebtedness from petitioner to those trustees, since the operative terms of the agreement show clearly

Levine v. Comm'r

2017 T.C. Summary Opinion 60 · United States Tax Court · Aug 7, 2017

plan, including the portion he had used for his personal use and the two lines his children used, because it was not easy to allocate the usage between his personal and business use, the allocation would have required “clearly … - 31 - tacitly admitted that petitioner qualifies for the deduction.14 Respondent, however, disputes the amount of the deduction.

Magill v. Comm'r

43 T.C.M. 859 · United States Tax Court · Mar 24, 1982

Thus, on the face of it, there would appear to be no question that Sidney and petitioners Irene and Florence qualify as transferees of the estate under section 6901(h) as well as section 301.6901-1(b), Proced. & Admin. … This test is clearly satisfied in the present case, since the attorney's fee was specifically approved for payment in a probate court order. 24 There is some uncertainty, though, as to whether the Court of Appeals considers

Zenkel v. Commissioner

72 T.C.M. 499 · United States Tax Court · Aug 27, 1996

Petitioners' Purported Reliance on Tax Advisers Petitioners also maintain that they reasonably relied upon the advice of a qualified adviser. … Accordingly, we hold that petitioners did not reasonably or in good faith rely on Becker as an expert or a qualified professional working in the area of his expertise to establish the fair market value of the Sentinel

Fromm Laboratories, Inc. v. Commissioner

19 T.C.M. 1059 · United States Tax Court · Sep 29, 1960

The serum so produced could thereafter be used, either as a prophylactic for conferring immunity on non-diseased foxes, or as a remedy for the treatment of encephalitis in infected animals. … To the contrary, their records clearly reveal that they intended to, and did, retain the benefit of such expenditures for their own corporate purposes - by including same in their own books of account as current operating

Knight Furniture Co. v. Commissioner

81 T.C.M. 1069 · United States Tax Court · Jan 29, 2001

Courts should be hesitant to substitute their judgment and attribute a tax-avoidance motive unless the facts and circumstances clearly warrant the conclusion that the accumulation of earnings and profits was unreasonable … A corporation, however, cannot immunize itself from the accumulated earnings tax merely by referring to expansion in its corporate minutes. See Faber Cement Block Co. v. Commissioner, supra at 332.

Crile v. Comm'r

108 T.C.M. 372 · United States Tax Court · Oct 2, 2014

While Ms. von Habsburg is a well- qualified art professional, we find her method for determining the potential for asset appreciation to be unreliable as applied here. … The testimony established that it is difficult to predict when success will occur in the art world, but that the prices paid for works by established artists often increase dramatically toward the end of their careers.

InverWorld v. Commissioner

71 T.C.M. 3231 · United States Tax Court · Jun 27, 1996

Accordingly, LTD chose not to establish a direct corporate presence in Mexico. When LTD was first established, its clients were on the client roster of InverMexico. … INC did, however, establish an office in San Antonio to perform its duties.

Fazzio v. Commissioner

60 T.C.M. 1328 · United States Tax Court · Dec 3, 1990

Many facts exist in this case that clearly and convincingly establish that petitioner blatantly and intentionally endeavored to conceal, mislead, and otherwise prevent the collection of tax knowingly owed by him. … In examining petitioner's actions related to the transfer of funds and omission of interest income, we find that respondent has clearly and convincingly established that petitioner acted fraudulently.

Bruce L. Brosi v. Commissioner

120 T.C. No. 2 · United States Tax Court · Jan 13, 2003

Furthermore, Congress clearly intended that the physical or mental impairment of the taxpayer be substantial. … The Secretary has established such form and manner in Rev. Proc. 99-21, 1999-1 C.B. 960.

Van Roekel v. Commissioner

56 T.C.M. 1297 · United States Tax Court · Feb 23, 1989

In 1970 petitioner established and incorporated Vermeer Sales *79 of Texas, Inc. (Vermeer), of which he was president and sole shareholder. … Prefatorily, respondent contends that the transaction does not qualify as a "genuine multiple-party transaction" under Frank Lyon Co.

Estate of Spear v. Commissioner

71 T.C.M. 2512 · United States Tax Court · Mar 19, 1996

We now conclude that the badges of fraud without the deemed facts enumerated in supra note 2, do not clearly and convincingly establish petitioners' fraudulent intent. 2 (...continued) (m) The … Petitioners concede that respondent issued the notice of deficiency in time to qualify under section 6501(e)(1)(A) if more than 25 percent of gross income was omitted from each return. c.

Lamar v. Commissioner

35 T.C.M. 993 · United States Tax Court · Jul 20, 1976

Per diem paid to the field team employees who qualified *188 therefor was at the rate of $11 per day for a leadman and an engineer, and $9 per day for the other members of the field teams. … The per diem payments were "undeniable accessions to wealth, clearly realized and over which the [petitioner had] complete dominion" ( Commissioner v. Glenshaw Glass Co., supra, p. 431 ); and thus they were gains.

Wilson v. Commissioner

70 T.C.M. 1157 · United States Tax Court · Nov 6, 1995

benefits claimed on petitioners' 1981 Federal income tax returns, and available for prompt use on their other tax returns, we conclude that further investigation of the  - 19 - investment clearly … The records in these cases do not establish an abuse of discretion on the part of respondent but support respondent's position.

Beauchamp v. Commissioner

74 T.C.M. 425 · United States Tax Court · Aug 26, 1997

A sporadic activity, a hobby, or an amusement diversion does not qualify." Commissioner v. Groetzinger, 480 U.S. 23, 35 (1987). The taxpayer bears the burden of showing he had the required profit motive. … Once the Commissioner establishes that a portion of the underpayment is attributable to fraud, the entire underpayment is treated as attributable to fraud except for any portion of the underpayment which the taxpayer establishes

Bauman v. Commissioner

71 T.C.M. 2961 · United States Tax Court · May 2, 1996

The record does not support a finding that the Coal Reserve Report was prepared by a qualified expert. … "In the face of a transaction which clearly lacked economic substance, and which was designed to produce tax benefits out of proportion with total investment, * * * [petitioners’ arguments] do not establish the exercise