Case law

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

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

Wilson v. Comm'r

83 T.C.M. 1317 · United States Tax Court · Mar 5, 2002

The record clearly establishes that petitioners had not yet opened the restaurant/nightclub facility during 1990 and 1991. … Petitioners clearly relied upon Mr. Collins to compute properly their NOL carryover from 1990. We find that petitioners’ reliance on Mr.

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.

Rosenberg v. Commissioner

54 T.C.M. 392 · United States Tax Court · Aug 31, 1987

Further, respondent contends that petitioner failed to establish any basis in the entity. … However, in the case before us, petitioner, as in Green, attempted to recharacterize a passive investment into a trade or business in order to qualify for deductions under sec. 174 .

Bryce E. and Michelle S. Nemitz v. Commissioner

130 T.C. No. 9 · United States Tax Court · May 15, 2008

All of those options qualified as incentive stock options (ISOs). During each of the years 1997, 1998, and 2000, Mr. Nemitz exercised at least certain of the ISOs that McLeod granted to him (McLeod ISOs). … That stipulation is clearly contrary to the facts that we have found are established by the record, and we shall disregard it. See Cal-Maine Foods, Inc. v. Commissioner, 93 T.C. 181, 195 (1989).

Tharp v. Commissioner

57 T.C.M. 1190 · United States Tax Court · Aug 7, 1989

Tharp qualifies as an "innocent spouse" under section 6013(e). … In sum, we conclude that petitioners have failed to establish that Mrs.

Tucker v. Comm'r

101 T.C.M. 1307 · United States Tax Court · Mar 22, 2011

A taxpayer may qualify for a withdrawal under circumstances laid out in IRC Section 6323(j) if the filing of the lien was premature or otherwise not in accordance with legal and administrative procedures, at … A taxpayer’s reasonable collection potential is determined, in part, using published guidelines that establish national and  -32- local allowances for necessary living expenses.

Estate of Howard v. Commissioner

2 T.C.M. 1075 · United States Tax Court · Dec 9, 1943

Adams, a business friend, were named and are now the duly appointed, qualified and acting executors of her estate. … We do not agree with the respondent's contention, for it is clearly stipulated that the compensation so paid the attorney was for services rendered C. A. Adams, the special administrator, and we have so found.

Frazier v. Commissioner

49 T.C.M. 715 · United States Tax Court · Feb 11, 1985

Petitioner's relatives clearly occupied two of the farm houses as personal residences, and petitioner has not established any business purpose for such occupancy. … Section 1.183-2(b)(3), Income Tax Regs. , provides-- The fact that the taxpayer devoted a limited amount of time to an activity does not necessarily indicate a lack of profit motive where the taxpayer employs competent and qualified

First Nat'l Ben. Soc'y v. Commissioner

8 T.C.M. 841 · United States Tax Court · Sep 13, 1949

It assumes and contends that it was a true life insurance company and qualified as such under the statutory definition of that type of organization as set forth in section 201 (a) , as follows: " SEC. 201 . … During 1939 it had in force only 34 out of 10,900 outstanding "policies" (or a.32+ per cent), labeled "Assessment Forms", the remaining being clearly not subject to assessment as shown by the facts that the payments are called

Christians v. Comm'r

85 T.C.M. (RIA) 1267 · United States Tax Court · May 5, 2003

Petitioner knew that he had to have a certain level of income to qualify for a home loan. … In a few cases, however, the Commissioner has failed to establish a link between understatements and fraudulent intent. In Rao v. Commissioner, T.C.

BURR v. COMMISSIONER

83 T.C.M. 1370 · United States Tax Court · Mar 25, 2002

Brockamp, 519 U.S. 347, 352-354 (1997), and Congress, after recently scrutinizing section 6511, has seen fit to change it only in circumstances for which petitioner would not qualify. … The stipulations in this case establish that petitioner did not file his 1995 and 1996 returns until July 22, 1999.

Kline v. Comm'r

110 T.C.M. 123 · United States Tax Court · Aug 5, 2015

A taxpayer can establish material participation by satisfying any of seven tests provided in the regulations. … The temporary regulation, however, clearly instructs that the taxpayer’s participation is to be compared to the “participation in the activity of any other individual”.

Brookfield v. Commissioner

15 T.C.M. 247 · United States Tax Court · Mar 12, 1956

Opinion To be entitled to a deduction for the amounts in controversy as business expenses, it was incumbent upon petitioner to establish that such amounts were paid during the taxable year, that they were ordinary and necessary … To permit deduction of this item a second time, on page 3 of this return, clearly would result in a double deduction.

Tallal v. Commissioner

52 T.C.M. 1017 · United States Tax Court · Nov 12, 1986

It is undisputed that the American Red Cross qualifies as such an organization. … In this case, a valuation overstatement clearly exists. The Tallals claimed the value of the donated bandage packages to be $45,600.

Hartwell v. Commissioner

24 T.C.M. 278 · United States Tax Court · Mar 8, 1965

The respondent disallowed these claimed deductions on the ground that it had not been established that such legal fees were ordinary and necessary expenses of the corporation. … Clearly, the legal services rendered were to and for the benefit of the petitioner individually.

Lone Star Life Ins. Co. v. Commissioner

74 T.C.M. 904 · United States Tax Court · Oct 14, 1997

As a result of the disallowance Hibiscus has no reserves and fails to qualify as an insurance company under I.R.C. sec. 816. … A taxpayer pleading the bar of the statute of limitations may establish a prima facie case by showing that the statutory notice was mailed beyond the normal 3-year period.

Underwood v. Commissioner

58 T.C.M. 731 · United States Tax Court · Nov 20, 1989

It also discussed methods of establishing the business and identified investment criteria for potential charter owners. … Investment Tax Credit Issue Section 38 provides that a credit is allowed to a taxpayer for qualified investment in certain property.

Coggin v. Commissioner

65 T.C.M. 2623 · United States Tax Court · May 17, 1993

Although the return receipt attached to the outside of the certified mailing envelope had language indicating the correspondence was mailed *265 to the chief of the Examination Division, the address on the envelope clearly … The Court conditions or qualifies references to the notes as "purported" or "would be issued" for the reason that the notes were never introduced into evidence and, since Mr.