The Tax Court in Brief March 22 – March 26, 2021

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The Tax Court in Brief March 22 – March 26, 2021

Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

For a link to our podcast covering the Tax Court in Brief, download here or check out other episodes of The Freeman Law Project.

The Week of March 22 – March 26, 2021


American Limousines, Inc. v. Comm’r 

March 25, 2021 | Halpern, J. | Dkt. No. 4795-18L

Short SummaryAmerican Limousines, Inc. (the “Company”) owed approximately $1.2 million of unpaid employment taxes for 2009 through 2016.  The Company provided the IRS with various financial information and requested an installment agreement of $2,000 per month.  Alternatively, the Company requested its IRS account be placed in currently not collectible (CNC) status.  The IRS determined that an installment agreement of approximately $23,000 per month was appropriate and denied the Company’s proposed installment agreement.  The IRS also refused to place the Company’s IRS account in CNC status.   

Key Issue:

Primary Holdings

Key Points of Law:

Insight:  This decision shows the extremely deferential review the Tax Court provides to the IRS with respect to a taxpayer’s proposed collection alternative during a Collection Due Process proceeding.


Martin v. Comm’r, T.C. Memo. 2021-35 

March 24, 2021 | Holmes, J. | Dkt. No. 10115-15

Short SummaryThe IRS examined the taxpayers’ 2009 and 2010 joint income tax returns.  After the exam concluded, the IRS issued a notice of deficiency determining the taxpayer had unreported income.  In addition, the notice of deficiency denied certain losses from prior years, disallowed certain deductions related to taxpayer-husband’s business, and determined that penalties were appropriate.

Key Issue:

Primary Holdings

Key Points of Law:

InsightAlthough the taxpayers in Martin lost on most issues, the taxpayers succeeded in having the accuracy-related penalty waived due to the IRS’ failure to comply with Section 6751(b).  Taxpayers should continue to challenge penalties in any petition they file with the Tax Court.


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