2024-08-21
In July 2024, the Tax Court published 13 opinions, which included a total of 192 pages. Below are graphs for the month showing: (i) the top 15 code sections referenced, (ii) cases cited 4 or more times, (iii) the number of opinions by judge, and (iv) the number of pages by judge.
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 concisely state the holding of a prior case in a parenthetical. Below are excerpts from the July 2024 Tax Court cases referring to these types of principles or holdings.
Berman v. Commr., 163 T.C. No. 1 (2024). (Gale)
Baldwin v. Commissioner, T.C. Memo. 2002-162, 83 T.C.M. (CCH) 1915, 1927-28 (applying duty of consistency to hold taxpayer estopped from claiming that his wholly owned corporation was not valid S corporation)
Berman v. Commr., 163 T.C. No. 1 (2024). (Gale)
See Keeler v. Commissioner, 180 F.2d 707 (10th Cir. 1950) (taxpayer's election of a war loss deduction under section 127 of Internal Revenue Code of 1939 not revocable under doctrine of election)
Berman v. Commr., 163 T.C. No. 1 (2024). (Gale)
See Bonner v. City of Prichard, 661 F.2d 1206, 1209 (11th Cir. 1981) (holding that U.S. Court of Appeals for the Eleventh Circuit follows precedent of cases decided by the U.S. Court of Appeals for the Fifth Circuit before September 30, 1981)
Berman v. Commr., 163 T.C. No. 1 (2024). (Gale)
Blakely v. Commissioner, T.C. Memo. 1982-745, 45 T.C.M. (CCH) 437, 439 (1982) ("Unexpected subsequent events and a later change of mind will not be grounds for relief from the binding effect of an election.")
Berman v. Commr., 163 T.C. No. 1 (2024). (Gale)
Bankers & Farmers Life Ins. Co. v. United States, 643 F.2d 234, 238 (5th Cir. 1981) (holding taxpayer not entitled to revoke an election based on a mistake of law)
Berman v. Commr., 163 T.C. No. 1 (2024). (Gale)
The duty of consistency, or quasi-estoppel, is an equitable doctrine that prevents a taxpayer from taking one position on one tax return and a contrary position on a subsequent return after the limitations period has run for the earlier year, if the contrary position would harm the Commissioner.
Berman v. Commr., 163 T.C. No. 1 (2024). (Gale)
[T]his position is buttressed by the doctrine of election, which holds generally that an election by a taxpayer that is a free choice between alternative, legally valid tax treatments and is communicated to the Commissioner by an overt act is irrevocable, see Grynberg v. Commissioner, 83 T.C. 255, 261 (1984); Hodel v Commissioner, T.C. Memo. 1996-348, 72 T.C.M. (CCH) 276, 279 (1996).
Corning Place Ohio, LLC, Corning Place Ohio Investment, LLC, Tax Matters Partner v. Commr., T.C. Memo. 2024-72. (Lauber)
See, e.g., Hagen Advert. Displays, Inc. v. Commissioner, 407 F.2d 1105, 1110 (6th Cir. 1969) ( "[The] taxpayer, not the Commissioner, must bear the burden of reporting in the proper tax year.")
Corning Place Ohio, LLC, Corning Place Ohio Investment, LLC, Tax Matters Partner v. Commr., T.C. Memo. 2024-72. (Lauber)
Magill v. Commissioner, 70 T.C. 465, 479-80 (1978) (holding that a taxpayer "still has a duty to read the return" even if all information was properly furnished to the preparer)
Corning Place Ohio, LLC, Corning Place Ohio Investment, LLC, Tax Matters Partner v. Commr., T.C. Memo. 2024-72. (Lauber)
See Metra Chem Corp. v. Commissioner, 88 T.C. 654, 662-63 (1987) (holding that a reliance on a tax preparer does not constitute reasonable cause if the taxpayer's review of the return should have revealed errors)
Foradis v. Commr., T.C. Summary Opinion 2024-13. (Leyden)
See Tokarski v. Commissioner, 87 T.C. 74, 77 (1986) ( "[W]e are not required to accept the self-serving testimony of [a taxpayer] . . . as gospel.")
Mazotti v. Commr., T.C. Memo. 2024-75. (Jones)
Cannon v. Commissioner, 949 F.2d at 351 n.8; see also Treas. Reg. § 1.183-2(a) ("In determining whether an activity is engaged in for profit, greater weight is given to objective facts than to the taxpayer's mere statement of his intent.")
Mazotti v. Commr., T.C. Memo. 2024-75. (Jones)
Den Besten v. Commissioner, T.C. Memo. 2019-154, at *20 ("Having a business plan may suggest that a taxpayer conducted the activity in a businesslike manner.")
Mazotti v. Commr., T.C. Memo. 2024-75. (Jones)
See, e.g., Wright v. Commissioner, 31 T.C. 1264, 1267 (1959) (disallowing a business deduction for an around-the-world trip in which the petitioner wrote in a diary and purportedly wanted to publish a book based on the diary)
Mazotti v. Commr., T.C. Memo. 2024-75. (Jones)
See Neonatology Assocs., P.A. v. Commissioner, 299 F.3d at 234 ("When, as here, a taxpayer is presented with what would appear to be a fabulous opportunity to avoid tax obligations, he should recognize that he proceeds at his own peril.")
Tuma v. Commr., T.C. Memo. 2024-71. (Marshall)
114 T.C. 184, 195 (2000); see also Bunney v. Commissioner, 114 T.C. 259, 267 (2000) ("Tax preparation software is only as good as the information one puts into it.")
In July 2024, the IRS published 5 Announcements, Notices, Revenue Procedures, and Revenue Rulings, which included a total of 58 pages.
In July 2024, the IRS published 51 Written Determinations, which included a total of 329 pages.
