2024-03-06
In February 2024, the Tax Court published 19 opinions, which included a total of 433 pages. Below are graphs showing the number of opinions by judge and the number of pages by judge. [Edited 3/9/2024. Also below is a chart showing the top 20 code sections referenced by the Tax Court during the month.] [Edited 3/10/2024. Also below is a chart showing the cases cited 4 or more times by the Tax Court during the month.]
I am always interested in learning well-established tax principles. Often, court cases will explicitly indicate that a tax principle is well established or well settled. Or the court may refer to a “cardinal rule” or a “doctrine.” Below are excerpts from some of the February 2024 Tax Court cases referring to these types of principles, doctrines, or rules.
Hubbard v. Commr., T.C. Memo. 2024-16. (Marshall)
Old Colony Tr. Co. v. Commissioner, 279 U.S. 716, 729 (1929) ("[D]ischarge by a third person of an obligation to [the taxpayer] is equivalent to receipt by the person taxed.").
Hubbard v. Commr., T.C. Memo. 2024-16. (Marshall)
Glenshaw Glass Co. v. Commissioner, 348 U.S. at 431 ("Here we have instances of undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion. The mere fact that the payments were extracted from the wrongdoers as punishment for unlawful conduct cannot detract from their character as taxable income to the recipients.").
Hubbard v. Commr., T.C. Memo. 2024-16. (Marshall)
Du Poux v. Commissioner, T.C. Memo. 1994-448, 68 T.C.M. (CCH) 667, 668 ("[F]ailure to receive tax documents [such as Form 1099-MISC, Miscellaneous Income] does not excuse taxpayers from the duty to report income.").
Crumedy v. Commr., T.C. Memo. 2024-19. (Ashford)
Grunsted v. Commissioner, 136 T.C. 455, 460 (2011) ("This Court and others have repeatedly characterized returns reflecting zero income and zero tax as frivolous.").
Martino v. Commr., T.C. Memo. 2024-18. (Lauber)
Mendes v. Commissioner, 121 T.C. 308, 312-13 (2003) (holding that an argument not pursued on brief may be considered "abandoned").
Whistleblower 14376-16W v. Commr., T.C. Memo. 2024-22. (Thornton)
Weiss v. Commissioner, 147 T.C. 179, 196 (2016) ("The IRM lacks the force of law and does not create rights for taxpayers.").
Oconee Landing Property, LLC v. Commr., T.C. Memo. 2024-25. (Lauber)
Boree v. Commissioner, 837 F.3d at 1105 ("[T]he [taxpayers] deducted expenses related to the property . . . , a practice inconsistent with capital gains treatment . . . .").
Oconee Landing Property, LLC v. Commr., T.C. Memo. 2024-25. (Lauber)
Jones v. Commissioner, 560 F.3d at 1199; Strasburg, 79 T.C.M. (CCH) at 1704 ("The allowable charitable contribution deduction for ordinary income property is limited to the basis of the property donated.").
Oconee Landing Property, LLC v. Commr., T.C. Memo. 2024-25. (Lauber)
Lenihan v. Commissioner, T.C. Memo. 2006-259, 92 T.C.M. (CCH) 463, 466 (holding that the cost basis reported by a taxpayer on his Federal tax return was merely a statement of his position, not evidence that his figure was correct).
Couturier v. Commr., 162 T.C. No. 4 (2024). (Lauber)
United States v. Dixieline Fin., Inc., 594 F.2d 1311, 1312 (9th Cir. 1979) (collecting cases) ("[An assessment] consists of no more than the ascertainment of the amount due and the formal entry of that amount on the books of the secretary.").
Couturier v. Commr., 162 T.C. No. 4 (2024). (Lauber)
Bufferd v. Commissioner, 506 U.S. 523, 525-26 (1993) ("Code § 6501(a) establishes a generally applicable statute of limitations providing that the Internal Revenue Service may assess tax deficiencies within a 3-year period from the date a return is filed.").
Couturier v. Commr., 162 T.C. No. 4 (2024). (Lauber)
N.Y. & Presbyterian Hosp. v. United States, 881 F.3d 877, 886 n.13 (Fed. Cir. 2018) ("[T]itles [in the Code] have no legal effect . . . .").
Couturier v. Commr., 162 T.C. No. 4 (2024). (Lauber)
Badaracco v. Commissioner, 464 U.S. at 398 ("Courts are not authorized to rewrite a statute because they might deem its effects susceptible of improvement.").
Whistleblower 14376-16W v. Commr., T.C. Memo. 2024-22. (Thornton)
Wadleigh v. Commissioner, 134 T.C. 280, 294 (2010), it is "well-settled" that IRM provisions are "directory rather than mandatory, are not codified regulations, and clearly do not have the force and effect of law," Marks v. Commissioner, 947 F.2d 983, 986 n.1 (D.C. Cir. 1991), aff'g T.C. Memo. 1989-575; accord Weiss v. Commissioner, 147 T.C. 179, 196 (2016) ("The IRM lacks the force of law and does not create rights for taxpayers."), aff'd, No. 16-1407, 2018 WL 27593.
Meyer v. Commr., T.C. Memo. 2024-15. (Buch)
"Judicial estoppel is an equitable doctrine that prevents parties in from asserting positions contradictory to those they previously have affirmatively persuaded a court to accept." Huddleston v. Commissioner, 100 T.C. 17, 26 (1993).
Hubbard v. Commr., T.C. Memo. 2024-16. (Marshall)
"Under the constructive receipt doctrine 'funds [or other property] which are subject to a taxpayer's unfettered command and which he is free to enjoy at his option are constructively received by him whether he sees fit to enjoy them or not.'" Estate of Caan v. Commissioner, No. 14783-18, 161 T.C., slip op. at 20 (Oct. 18, 2023) (quoting Estate of Brooks v. Commissioner, 50 T.C. 585, 592 (1968)).
Acqis Technology, Inc. v. Commr., T.C. Memo. 2024-21. (Marshall)
The sham transaction doctrine requires courts and the Commissioner to look beyond the form of a transaction and to consider its substance. Slone v. Commissioner, 810 F.3d 599, 605 (9th Cir. 2015), vacating and remanding T.C. Memo. 2012-57.