Alabama Asphaltic Limestone Co. [Helvering v.], 315 U.S. 179 (1942) "A series of events must be construed as a single transaction coming within the reorganization provisions, even though they did not meet its literal language."||[categories: '368', 'corporations', 'reorganizations', 'substance over form']|[related cases: ]|[date added: 2023-09-02] supreme 1942 Alabama Asphaltic Limestone Co. [Helvering v.], 315 U.S. 179 (1942) In case of reorganizations of insolvent corporations, the creditors have the right to exclude the stockholders entirely from the reorganization plan. When the stockholders are excluded and the creditors of the old company become the stockholders of the new, "it conforms to realities to date their equity ownership" from the time when the processes of the law were invoked "to enforce their rights of full priority."||[categories: '368', 'corporations', 'reorganizations', 'substance over form']|[related cases: Cement Investors, Inc. [Helvering v.], Palm Springs Holding Corporation v. Commr.]|[date added: 2023-09-02] supreme 1942 American Automobile Association v. U.S., 367 U.S. 687 (1961) Although it was admitted that the method used by taxpayer was in accord with generally accepted commercial and accounting principles, it failed to "respect the criteria of annual tax accounting and may be rejected by the Commissioner."||[categories: '446', '451', 'accounting methods', 'annual accounting', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1961 American Bar Endowment [U.S. v.], 477 U.S. 105 (1986) "The sine qua non of a charitable contribution is a transfer of money or property without adequate consideration." A taxpayer may not deduct a payment as a charitable contribution if the taxpayer received a substantial benefit in return.||[categories: '170', 'charitable contributions']|[related cases: Hernandez v. Commr.]|[date added: 2023-09-02] supreme 1986 American Chicle Co. v. U.S., 316 U.S. 450 (1942) "The purpose of the foreign tax credit is to reduce international double taxation."||[categories: '901', 'foreign tax credit', 'international']|[related cases: ]|[date added: 2023-09-02] supreme 1942 American Code Co., Inc. [Lucas v.], 280 U.S. 445 (1930) "Since the Commissioner has '[m]uch latitude for discretion,' his interpretation of the statute's clear-reflection standard "should not be interfered with unless clearly unlawful."||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] supreme 1930 American Dental Co. [Helvering v.], 318 U.S. 322 (1943) "Tension between exclusion of gifts from income and treatment of cancellation of indebtedness as income."||[categories: '61', '102', 'estate and gift taxes', 'gross income']|[related cases: ]|[date added: 2023-09-02] supreme 1943 American National Co. v. U.S., 274 U.S. 99 (1927) "A liability may be accrued as a fixed obligation on the taxpayer's books and taken as a deduction from income when it is definitely incurred, although it is known at the time that the amount may be diminished by subsequent events."||[categories: '461', 'all-events test', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1927 Anderson [U.S. v.], 269 U.S. 422 (1926) "In advance of the assessment of a tax, all the events may occur which fix the amount of the tax and determine the liability of the taxpayer to pay it".||[categories: '461', 'all-events test', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1926 Anderson v. Helvering, 310 U.S. 404 (1940) "The production of oil and gas, like the mining of ore, is treated as an income-producing operation, not as a conversion of capital investment as upon a sale, and is said to resemble a manufacturing business carried on by the use of the soil."||[categories: '611', 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Angelus Milling Co. v. Commr., 325 U.S. 293 (1945) The IRS may waive compliance with its regulatory requirements by investigating the merits of a refund claim and taking action upon it. * * * The waiver doctrine, however, only applies to regulatory requirements and not to statutory requirements mandated by Congress."||[categories: '7422', 'other', 'refunds']|[related cases: ]|[date added: 2023-09-02] supreme 1945 Arkansas Best Corp. v. Commr., 485 U.S. 212 (1988) "A taxpayer's motivation in purchasing an asset is irrelevant to the question whether the asset is 'property held by a taxpayer (whether or not connected with his business)' and is thus within §1221's general definition of 'capital asset.'"||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] supreme 1988 Arrowsmith v. Commr., 344 U.S. 6 (1952) "The relation-back doctrine * * * stands for the principle that a subsequent event which is so integrally related to a prior event that the two events are in effect part and parcel of the same transaction, should be treated as having the same character as the prior event. The doctrine is premised on the idea that the tax consequences should be the same as if the subsequent event had occurred at the time of the prior event."||[categories: '1221', 'capital vs. ordinary', 'relation-back doctrine', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1952 Arthur Young & Co. [U.S. v.], 465 U.S. 805 (1984) "The relevance requirement of [the authority to summon under] §7602 [is] whether the requested material 'might have thrown light upon the correctness of the return.'"||[categories: '7602', 'summons']|[related cases: ]|[date added: 2023-09-02] supreme 1984 Avery v. Commr., 292 U.S. 210 (1934) "Dividends of a * * * taxpayer on the cash basis would not become his income on mere declaration but only when 'received,' that is, unqualifiedly made subject to the stockholder's demand as by check."||[categories: '301', 'corporations', 'dividends', 'tax101', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1934 Badaracco v. Commr., 464 U.S. 386 (1984) "[A]n amended return is a creature of administrative origin and grace".||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] supreme 1984 Badaracco v. Commr., 464 U.S. 386 (1984) "[A]n amended return, of course, may constitute an admission . . . ."||[categories: 'returns and amended returns']|[related cases: McCarthy v. U.S., Lare v. Commr.]|[date added: 2023-09-02] supreme 1984 Badaracco v. Commr., 464 U.S. 386 (1984) "A taxpayer who submits a fraudulent return does not purge the fraud by subsequent voluntary disclosure; the fraud was committed, and the offense completed, when the original return was prepared and filed."||[categories: '6501', 'criminal/fraud', 'statute of limitations']|[related cases: Hanson [U.S. v.]]|[date added: 2023-09-02] supreme 1984 Bajakajian [U.S. v.], 524 U.S. 321 (1998) "To pass the constitutional proportionality inquiry under the Excessive Fines Clause, the amount of the forfeiture or fine must bear some relationship to the gravity of the offense that it is designed to punish. * * * 'If the amount of the forfeiture is grossly disproportional to the gravity of the defendant's offense, it is unconstitutional.'"||[categories: 'constitution', 'penalties']|[related cases: ]|[date added: 2023-09-02] supreme 1998 Banks [Commr. v.], 543 U.S. 426 (2005) A contingent-fee agreement should be viewed as an anticipatory assignment to the attorney of a portion of the client's income from any litigation recovery.||[categories: '61', 'gross income', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 2005 Barclay & Co. v. Edwards, 267 U.S. 442 (1924) "The power of Congress in levying taxes is very wide, and where a reasonable classification is made concerning taxpayers, which is not arbitrary and capricious, the Fifth Amendment does not apply".||[categories: '11(d)', 'constitution', 'corporations', 'international']|[related cases: ]|[date added: 2023-09-02] supreme 1924 Barclays Bank PLC v. FTB of California, 512 U.S. 298 (1994) Complete Auto "sufficient nexus" requirement met when taxpayers did business in the state.||[categories: 'constitution', 'other', 'state tax']|[related cases: ]|[date added: 2023-09-02] supreme 1994 Barnhart v. Sigmon Coal Co., 534 U.S. 438 (2002) "[A]s in all statutory construction cases, we begin with the language of the statute."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 2002 Barnhart v. Thomas, 540 U.S. 20 (2003) "A limiting clause or phrase * * * should ordinarily be read as modifying only the noun or phrase that it immediately follows[.]"||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 2003 Barnhill v. Johnson, 503 U.S. 393 (1992) Appeals to legislative history are well taken only to resolve statutory ambiguity.||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1992 Barnhill v. Johnson, 503 U.S. 393 (1992) "[N]ormally, we assume that the same terms have the same meaning in different sections of the same statute."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1992 Bartels v. Birmingham, 332 U.S. 126 (1947) "[IRS] interpretive rulings * * * do not have the force and effect of Treasury Decisions."||[categories: 'authorities', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1947 Bartels v. Birmingham, 332 U.S. 126 (1947) The relationship of employer-employee is not determined solely by the control which the principal may or could exercise over the details of the service rendered to his business by the worker.||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] supreme 1947 Bashford [Commr. v.], 302 U.S. 454 (1938) "[A reorganization] plan must be viewed as a whole and that if the transferred property, although designed to pass temporarily through one corporation, is intended to rest permanently in another, the holding by the first may be of such a transitory nature as to be without real substance."||[categories: '368', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1938 Basye [U.S. v.], 410 U.S. 441 (1973) "For it is axiomatic that each partner must pay taxes on his distributive share of the partnership's income without regard to whether that amount is actually distributed to him."||[categories: 'partnerships']|[related cases: Mellon [Heiner v.], First Mechanics Bank v. Commr.]|[date added: 2023-09-02] supreme 1973 Basye [U.S. v.], 410 U.S. 441 (1973) "The principle of Lucas v. Earl, that he who earns income may not avoid taxation through anticipatory arrangements no matter how clever or subtle, has been repeatedly invoked by this court as a cornerstone of our graduated income system."||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] supreme 1973 Bazley v. Commr., 331 U.S. 737 (1947) "The form of [a] reorganization was employed in an effort to achieve the distribution of a disguised dividend, * * * The net effect of the transaction * * * was a pro rata distribution of debentures among stockholders in such manner as to render them the substantial equivalent of a cash dividend."||[categories: '301', '368', 'corporations', 'dividends', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1947 Bazley v. Commr., 331 U.S. 737 (1947) The basic policy behind the reorganization provisions is to allow deferral of taxation where a business enterprise is continued in a different corporate form and there is continuity of shareholder investment.||[categories: '368', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1947 Bedford [Estate of] [Commr. v.], 325 U.S. 283 (1945) Cash received in a recapitalization was treated as a dividend and not as a capital gain.||[categories: '301', '356', '368', 'corporations', 'dividends', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1945 Bellis v. U.S., 417 U.S. 85 (1974) Individuals cannot rely on the Fifth Amendment privilege to avoid producing the records of a collective entity.||[categories: 'constitution', 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] supreme 1974 Bess [U.S. v.], 357 U.S. 51 (1958) "[T]he transfer of property subsequent to the attachment of the lien does not affect the lien, for 'it is the very nature and essence of a lien, that no matter into whose hands the property goes, it passes cum onere'".||[categories: 'collection', 'lien', 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1958 Biddle v. Commr., 302 U.S. 573 (1938) The determination as to whether a foreign income tax had been "paid or accrued" within the meaning of the Federal taxing statute was to be made in accordance with the criteria established by our own revenue laws and court decisions and not by "a shifting standard * * * adopted by reference to foreign characterizations * * *."||[categories: '901', 'foreign tax credit', 'international']|[related cases: Goodyear [U.S. v.]]|[date added: 2023-09-02] supreme 1938 Bingham v. Commr., 325 U.S. 365 (1945) "An expenditure is 'ordinary and necessary' if the taxpayer establishes that it is directly connected with, or proximately related to, the taxpayer's trade or business activities."||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] supreme 1945 Bingler v. Johnson, 394 U.S. 741 (1969) "Compensation is that bargained-for payments, given only as a 'quo' in return for a quid of services rendered * * * should not be excludable from income as 'scholarship' funds." "[E]xemptions from taxation are to be construed narrowly".||[categories: '117', 'other', 'scholarships']|[related cases: ]|[date added: 2023-09-02] supreme 1969 Bingler v. Johnson, 394 U.S. 741 (1969) "Exemptions from taxation are to be construed narrowly[.]"||[categories: 'exemptions']|[related cases: Jacobson [Commr. v.]]|[date added: 2023-09-02] supreme 1969 Bisceglia [U.S. v.], 420 U.S. 141 (1975) "There is * * * no requirement that there be any knowledge of a tax liability or probable cause to believe one exists before a summons may issue." [Approved an IRS summons issued to a bank "for the purpose of identifying an unnamed individual who had deposited a large amount of money in severely deteriorated bills."]||[categories: '7602', 'summons']|[related cases: ]|[date added: 2023-09-02] supreme 1975 Blodgett v. Silberman, 277 U.S. 1 (1928) "Money [in a safe deposit box] is tangible property".||[categories: '2101', 'estate and gift taxes', 'international']|[related cases: ]|[date added: 2023-09-02] supreme 1928 Bob Jones University v. Simon, 416 U.S. 725 (1974) Taxpayers are generally required to challenge the validity of a tax assessment in a refund proceeding, as opposed to suits seeking equitable or declaratory relief.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1974 Boehm v. Commr., 326 U.S. 287 (1945) Taxpayers generally bear the burden of proving that the stock in question was "wholly worthless" and when it becomes worthless.||[categories: '165', 'losses', 'worthless securities']|[related cases: ]|[date added: 2023-09-02] supreme 1945 Bogardus v. Commr., 302 U.S. 34 (1937) The controlling factor to distinguish between a gift and compensation is the intent of the payor.||[categories: '61', '102', 'estate and gift taxes', 'gross income']|[related cases: Duberstein [Commr. v.], Lo Bue [Commr. v.]]|[date added: 2023-09-02] supreme 1937 Bollinger [Commr. v.], 485 U.S. 340 (1988) "The genuineness of the agency relationship is adequately assured * * * when the fact that the corporation is acting as agent for its shareholders with respect to a particular asset is set forth in a written agreement at the time the asset is acquired, the corporation functions as agent and not principal with respect to the asset for all purposes, and the corporation is held out as the agent and not principal in all dealings with third parties relating to the asset."||[categories: '61', 'agency', 'gross income']|[related cases: National Carbide Corporation v. Commr.]|[date added: 2023-09-02] supreme 1988 Boulware v. U.S., 552 U.S. 421 (2008) "To establish a tax due and owing in this case, the government had to prove that [the] corporation had earnings and profits."||[categories: '301', '312', '7201', 'E&P', 'corporations', 'criminal/fraud', 'dividends']|[related cases: ]|[date added: 2023-09-02] supreme 2008 Boyle [Estate of] [U.S. v.], 469 U.S. 241 (1985) "Reliance by a lay person on a lawyer [or an accountant] is of course common; but that reliance cannot function as a substitute for compliance with an unambiguous statute."||[categories: 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] supreme 1985 Boyle [Estate of] [U.S. v.], 469 U.S. 241 (1985) Responsibility to file a timely federal tax return is a nondelegable duty.||[categories: 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] supreme 1985 Boyle [Estate of] [U.S. v.], 469 U.S. 241 (1985) "[W]hen an accountant or attorney advises a taxpayer on a matter of tax law, such as whether a liability exists, it is reasonable for the taxpayer to rely on that advice."||[categories: 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] supreme 1985 Bragdon v. Abbott, 524 U.S. 624 (1998) "Congress' repetition of a well-established term carries the implication that Congress intended the term to be construed in accordance with pre-existing regulatory interpretations."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1998 Brewster v. Gage, 280 U.S. 327 (1930) The basis of property in the hands of a person acquiring such property from a decedent is generally its fair market value as of the date of the decedent's death.||[categories: '1014', 'basis', 'estate and gift taxes', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1930 Brockamp [U.S. v.], 519 U.S. 347 (1997) "Refused to permit equitable tolling of the limitations period on income tax refund claims."||[categories: '6511', 'refunds']|[related cases: ]|[date added: 2023-09-02] supreme 1997 Brooks [Burnet v.], 288 U.S. 378 (1933) "Congress had power to tax the devolution of a bond of or share in an American company when the holder was an alien; it went further and held that the mere presence here of bonds or share certificates in foreign corporations, brought the choses in action themselves within the jurisdiction of the United States."||[categories: '2101', 'estate and gift taxes', 'international']|[related cases: ]|[date added: 2023-09-02] supreme 1933 Brown [Commr. v.], 380 U.S. 563 (1965) A sale is generally defined as a transfer of property for "money or its equivalent".||[categories: '1001', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] supreme 1965 Brown Shoe Company, Inc. v. Commr., 339 U.S. 583 (1950) The assets transferred to [the corporation] by the community groups represented "contributions to capital" * * * and required no reduction in the depreciation basis of the properties acquired. * * * [C]ontributions to capital may originate with persons having no proprietary interest in the business.||[categories: '118', 'contributions to capital']|[related cases: ]|[date added: 2023-09-02] supreme 1950 Brown v. Helvering, 291 U.S. 193 (1934) Except as otherwise specifically provided by statute, a liability does not accrue as long as it remains contingent.||[categories: '461', 'all-events test', 'timing']|[related cases: Dixie Pine Products Co. v. Commr., Security Flour Mills v. Commr.]|[date added: 2023-09-02] supreme 1934 Bruun [Helvering v.], 309 U.S. 461 (1940) A lessee's improvements to the land were a taxable gain when the lessor regained possession of the land. [Legislatively overturned with the enactment of section 109.]||[categories: '109', 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Bruun [Helvering v.], 309 U.S. 461 (1940) Congress in enacting the predecessor to section 61 exercised its full power to tax income.||[categories: '61', 'constitution', 'gross income']|[related cases: Burke [U.S. v.], Glenshaw Glass Co. [Commr. v.]]|[date added: 2023-09-02] supreme 1940 Burke [U.S. v.], 504 U.S. 229 (1992) In section 61(a), Congress intended "to exert 'the full measure of its taxing power' and to bring within the definition of income any ‘accession to wealth.'"||[categories: '61', 'constitution', 'gross income']|[related cases: Bruun [Helvering v.], Glenshaw Glass Co. [Commr. v.]]|[date added: 2023-09-02] supreme 1992 Byrum [U.S. v.], 408 U.S. 125 (1972) In the case of real property, the terms "'possession' and 'enjoyment' [in section 2036(a)(1)] have been interpreted to mean 'the lifetime use of the property.'"||[categories: '2036', 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] supreme 1972 Cammarano v. U.S. , 358 U.S. 498 (1959) Expenses incurred by liquor retailers and distributors in an effort to encourage voters to vote against a state prohibition initiative were not deductible as ordinary and necessary business expenses.||[categories: '162(e)', 'lobbying']|[related cases: ]|[date added: 2023-09-02] supreme 1959 Carlton [U.S. v.], 512 U.S. 26 (1994) "[The Supreme Court] repeatedly has upheld retroactive tax legislation against a due process challenge."||[categories: 'constitution']|[related cases: ]|[date added: 2023-09-02] supreme 1994 Cartwright [U.S. v.], 411 U.S. 546 (1973) "[T]he willing buyer-willing seller test of fair market value is nearly as old as the federal income, estate, and gifts taxes themselves[.]"||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] supreme 1973 Cement Investors, Inc. [Helvering v.], 316 U.S. 527 (1942) Although a reorganization under the Bankruptcy Act did not meet the requirements of the predecessor to section 368, it did meet the requirements to the predecessor to section 351.||[categories: '351', '368', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1942 Cement Investors, Inc. [Helvering v.], 316 U.S. 527 (1942) The creditors of the old company had an equitable interest in the property which was transferred to the new corporation.||[categories: '351', '368', 'corporations', 'reorganizations', 'substance over form']|[related cases: Alabama Asphaltic Limestone Co. [Helvering v.], Palm Springs Holding Corporation v. Commr.]|[date added: 2023-09-02] supreme 1942 Central Illinois Public Service v. U.S., 435 U.S. 21 (1978) Reimbursement for lunches not "wages" subject to withholding tax.||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] supreme 1978 Chae Chan Ping v. U.S., 130 U.S. 581 (1889) Where the code and a treaty pertain to the same subject matter but manifest an irreconcilable conflict, "the last expression of the sovereign will * * * control."||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1889 Cheek v. U.S., 498 U.S. 192 (1991) In the criminal tax context, willfulness requires a voluntary, intentional violation of a known legal duty.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] supreme 1991 Chew Heong v. U.S., 112 U.S. 536 (1884) A treaty will not be deemed to have been abrogated or modified by a later statute, unless such purpose on the part of Congress has been clearly expressed.||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1884 Chicago Portrait Co. [Burnet v.], 285 U.S. 1 (1932) "The words 'foreign country' in the credit provision included the various political subdivisions making up the foreign country."||[categories: '901', 'foreign tax credit', 'international']|[related cases: ]|[date added: 2023-09-02] supreme 1932 Chickasaw Nation v. U.S., 534 U.S. 84 (2001) A statute "is ambiguous * * * [if it is] capable of being understood in two or more possible senses or ways".||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 2001 Chickasaw Nation v. U.S., 534 U.S. 84 (2001) Interpretive "canons are not mandatory rules" and "other circumstances evidencing congressional intent can overcome their force".||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 2001 Church v. U.S., 143 U.S. 457 (1892) "[I]f a literal construction of the words of a statute be absurd, the act must be so construed as to avoid the absurdity."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1892 Clark [Commr. v.], 489 U.S. 726 (1989) The step-transaction doctrine mandates that interrelated yet formally distinct steps in an integrated transaction may not be considered independently of the overall transaction.||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] supreme 1989 Clifford [Helvering v.], 309 U.S. 331 (1940) The taxpayer contributed securities to a trust, directing himself as trustee to pay the income to his wife for a five-year period. At the end of five years, the trust was to terminate and the corpus would revert to the taxpayer. The taxpayer effectively retained the attributes of an owner, and should be treated as the owner of the trust assets for Federal tax purposes.||[categories: '61', 'gross income', 'substance over form', 'trusts']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Coleman-Gilbert Associates [Helvering v.], 296 U.S. 369 (1935) The Supreme Court emphasized the paramount status which is to be accorded the terms of the organizing document.||[categories: 'corporations', 'entity classification', 'trusts']|[related cases: Combs [Helvering v.], Morrissey v. Commr.]|[date added: 2023-09-02] supreme 1935 Combs [Helvering v.], 296 U.S. 365 (1935) The Court applied Morrissey's fact-specific approach in three companion cases decided that same day.||[categories: 'corporations', 'entity classification', 'trusts']|[related cases: Coleman-Gilbert Associates [Helvering v.], Morrissey v. Commr.]|[date added: 2023-09-02] supreme 1935 Commonwealth Improv. Co. [Burnet v.], 287 U.S. 415 (1932) Unusual cases may require disregard of corporate form.||[categories: 'corporations', 'tax101']|[related cases: Dalton v. Bowers, Moline Properties, Inc. v. Commr., New Colonial Ice Co., Inc. v. Commr., Kimbrell v. Commr., Paymer v. Commr., Tomlinson v. Miles]|[date added: 2023-09-02] supreme 1932 Compania General v. Collector, 279 U.S. 306 (1929) The place of the sale indicates the geographical source of the income.||[categories: '861', 'international', 'sourcing']|[related cases: ]|[date added: 2023-09-02] supreme 1929 Consolidated v. Burnet, 286 U.S. 417 (1932) Taxpayer must include income to which he has a claim of right.||[categories: '61', '451', 'gross income', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1932 Cook v. Tait, 265 U.S. 47 (1924) Upholding U.S. tax on income derived from U.S. citizen's property located in Mexico, even though the U.S. citizen was a permanent resident of Mexico.||[categories: '1', 'international']|[related cases: Crow v. Commr., Filler v. Commr.]|[date added: 2023-09-02] supreme 1924 Cook v. U.S., 288 U.S. 102 (1933) "A treaty or a statute will not override the other 'unless such purpose * * * has been clearly expressed'".||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1933 Corliss v. Bowers, 281 U.S. 376 (1930) "Taxation is not so much concerned with the refinements of title as it is with actual command over the property taxed".||[categories: '61', 'gross income', 'substance over form', 'tax101']|[related cases: Griffiths v. Helvering, P.G. Lake, Inc. [Commr. v.]]|[date added: 2023-09-02] supreme 1930 Corliss v. Bowers, 281 U.S. 376 (1930) "[I]ncome that is subject to a man's unfettered command and that he is free to enjoy at his own opinion may be taxed to him as his income, whether he sees fit to enjoy it or not".||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] supreme 1930 Corn Products Refining Co. v. Commr., 350 U.S. 46 (1955) "The taxpayer * * * was seeking capital gains treatment for gains derived from dealings in corn futures. * * * [T]he transactions were hedging transactions designed to protect against price fluctuations in the principal raw material of the taxpayer's manufacturing operation, and, consequently, the corn futures were excluded from the definition of capital asset".||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] supreme 1955 Correll [U.S. v.], 389 U.S. 299 (1967) Restricting to overnight trips the travel expense deduction for business meal costs.||[categories: '162', 'tax101', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] supreme 1967 Cottage Savings Association v. Commr., 499 U.S. 554 (1991) A sale or exchange of property is a realization event "so long as the exchanged properties are 'materially different' - that is, so long as they embody legally distinct entitlements."||[categories: '1001', 'sale or exchange', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1991 Cotton [U.S. v.], 535 U.S. 625 (2002) "[S]ubject-matter jurisdiction, because it involves a court's power to hear a case, can never be forfeited or waived".||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 2002 Couch v. U.S., 409 U.S. 322 (1973) There is no common law accountant's or tax preparer's privilege. [But now see section 7525]||[categories: 'other', 'privilege']|[related cases: ]|[date added: 2023-09-02] supreme 1973 Court Holding Co. [Commr. v.], 324 U.S. 331 (1945) "[A] sale by one person cannot be transformed for tax purposes into a sale by another by using the latter as a conduit through which to pass title."||[categories: '1001', 'corporations', 'sale or exchange', 'substance over form']|[related cases: Cumberland Pub. Serv. Co. [U.S. v.], Kluener [Estate of] v. Commr.]|[date added: 2023-09-02] supreme 1945 Court Holding Co. [Commr. v.], 324 U.S. 331 (1945) "[T]he incidence of taxation depends upon the substance of a transaction. * * * To permit the true nature of a transaction to be disguised by mere formalisms, which exist solely to alter tax liabilities, would seriously impair the effective administration of the tax policies of Congress."||[categories: 'substance over form', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1945 Crane v. Commr., 331 U.S. 1 (1947) "[W]ords of statutes--including revenue acts--should be interpreted where possible in their ordinary, everyday senses".||[categories: 'statutory construction']|[related cases: De Ganay v. Lederer]|[date added: 2023-09-02] supreme 1947 Crane v. Commr., 331 U.S. 1 (1947) A taxpayer's basis in purchased property is the cost, including any valid liabilities incurred in acquiring the property.||[categories: '1012', 'basis', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1947 Cuba Railroad Co. [Edwards v.], 268 U.S. 628 (1925) Capital contributions are not included in the income of the corporation. The exclusion applies to contributions by foreign governments as well.||[categories: '118', 'contributions to capital']|[related cases: ]|[date added: 2023-09-02] supreme 1925 Culbertson [Commr. v.], 337 U.S. 733 (1949) Transactions between family members require careful scrutiny.||[categories: 'other', 'related parties']|[related cases: Bongard [Estate of] v. Commr., Clark v. Commr., Van Anda [Estate of] v. Commr.]|[date added: 2023-09-02] supreme 1949 Culbertson [Commr. v.], 337 U.S. 733 (1949) "The first principle of income taxation: that income must be taxed to him who earns it."||[categories: '61', 'gross income', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1949 Culbertson [Commr. v.], 337 U.S. 733 (1949) To form a valid partnership under federal law, "the parties in good faith and acting with a business purpose [must] intend[] to join together in the present conduct of the enterprise".||[categories: 'partnerships', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1949 Cumberland Pub. Serv. Co. [U.S. v.], 338 U.S. 451 (1950) Whether a transaction has economic substance requires a factual determination. [Facts similar to Court Holding but opposite conclusion.]||[categories: 'economic substance', 'substance over form', 'tax101']|[related cases: Court Holding Co. [Commr. v.], Kluener [Estate of] v. Commr.]|[date added: 2023-09-02] supreme 1950 Cumberland Pub. Serv. Co. [U.S. v.], 338 U.S. 451 (1950) So long as the transaction was genuine, petitioners had every right to select any method they preferred of achieving a desired result regardless of the tax consequences flowing therefrom.||[categories: 'substance over form', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1950 Dalm [U.S. v.], 494 U.S. 596 (1990) "A party litigating a tax claim in a timely proceeding may, in that proceeding, seek recoupment of a related, and inconsistent, but now time-barred tax claim relating to the same transaction."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1990 Dalton v. Bowers, 287 U.S. 404 (1932) A corporation and its stockholders are separate taxable entities.||[categories: 'corporations', 'tax101']|[related cases: Commonwealth Improv. Co. [Burnet v.], Moline Properties, Inc. v. Commr., New Colonial Ice Co., Inc. v. Commr., Kimbrell v. Commr., Paymer v. Commr., Tomlinson v. Miles]|[date added: 2023-09-02] supreme 1932 Davis [U.S. v.], 370 U.S. 65 (1962) Transferring appreciated property to pay compensation is a taxable disposition of property for its fair market value.||[categories: '1001', 'sale or exchange', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1962 Davis [U.S. v.], 370 U.S. 65 (1962) The value of property received in exchange can be inferred from the value of the property given up.||[categories: 'fair market value', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1962 Davis [U.S. v.], 397 U.S. 301 (1970) "[A] redemption of stock from a sole shareholder is always equivalent to a dividend".||[categories: '301', '302', 'corporations', 'dividends', 'redemptions']|[related cases: ]|[date added: 2023-09-02] supreme 1970 Davis v. U.S. , 495 U.S. 472 (1990) "We give an agency's interpretations * * * considerable weight where they involve the contemporaneous construction of a statute and where they have been in long use."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1990 De Ganay v. Lederer, 250 U.S. 376 (1919) "Statutory words are presumed to be used in their ordinary and usual sense, and with the meaning commonly attributable to them."||[categories: 'statutory construction']|[related cases: Crane v. Commr.]|[date added: 2023-09-02] supreme 1919 Dickman v. Commr., 465 U.S. 330 (1984) The value of the right to use borrowed money is readily measurable by reference to current interest rates.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] supreme 1984 Dickman v. Commr., 465 U.S. 330 (1984) Sustaining the Commissioner's authority to change his position "even though a taxpayer may have relied to his detriment upon the Commissioner's prior position".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1984 Diedrich v. Commr., 457 U.S. 191 (1982) "The donor realizes an immediate economic benefit by the donee's assumption of the donor's legal obligation to pay the gift tax."||[categories: '61', '2501', 'estate and gift taxes', 'gross income']|[related cases: ]|[date added: 2023-09-02] supreme 1982 Disston [Commr. v.], 325 U.S. 442 (1945) A gift through a trust was a "future interest" due to limitations on disbursements from the trust.||[categories: '2503(b)', 'estate and gift taxes', 'trusts']|[related cases: Fondren v. Commr., Pelzer [U.S. v.]]|[date added: 2023-09-02] supreme 1945 Dixie Pine Products Co. v. Commr., 320 U.S. 516 (1944) A tax liability is not treated as accrued during the taxable year if the taxpayer contested it at the time it was proposed.||[categories: '461', '901', 'all-events test', 'foreign tax credit', 'international', 'timing']|[related cases: Brown v. Helvering, Security Flour Mills v. Commr.]|[date added: 2023-09-02] supreme 1944 Dixon v. U.S., 381 U.S. 68 (1965) "[C]ongress, not the Commissioner, prescribes the tax laws[.]"||[categories: 'authorities', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1965 Dobson v. Commr., 320 U.S. 489 (1943) The tax benefit rule permits a taxpayer to exclude from taxable income the amount received as a recovery of an amount deducted in an earlier year, but only to the extent that the deducted amount did not give rise to a tax benefit in that earlier year.||[categories: '1341', 'other', 'tax benefit rule']|[related cases: ]|[date added: 2023-09-02] supreme 1943 Dobson v. Commr., 320 U.S. 489 (1943) Decisions of the Tax Court on questions of fact were not reviewable if supported by any evidence in the record. [Legislatively overturned by an amendment to section 7482(a)(1) requiring the U.S. Courts of Appeals to review Tax Court decisions in the same manner and to the same extent as decisions of the district courts in civil actions tried without a jury.]||[categories: 'tax101', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1943 Dodd v. U.S., 545 U.S. 353 (2005) Courts "are not free to rewrite the statute that Congress has enacted".||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 2005 Donaldson v. U.S., 400 U.S. 517 (1971) The employee of a company to which the IRS had issued a summons could not intervene to prevent his employer's compliance with the IRS's request.||[categories: '7602', 'summons']|[related cases: ]|[date added: 2023-09-02] supreme 1971 Douglas v. Willcuts, 296 U.S. 1 (1935) If a taxpayer's obligation is paid by a third party, the effect is the same as if the third party had paid the taxpayer who in turn paid his creditor.||[categories: '61', 'gross income', 'tax101']|[related cases: Old Colony Trust Co. v. Commr.]|[date added: 2023-09-02] supreme 1935 Doyle v. Mitchell Bros. Co., 247 U.S. 179 (1918) Congress may tax a reseller only on its gross income, not its gross receipts.||[categories: '61', 'constitution', 'gross income']|[related cases: ]|[date added: 2023-09-02] supreme 1918 Duberstein [Commr. v.], 363 U.S. 278 (1960) Property is considered a gift if given in a spirit of "detached and disinterested generosity". The intent of the transferor controls the characterization of the property.||[categories: '61', '102', 'estate and gift taxes', 'gross income']|[related cases: Bogardus v. Commr., Lo Bue [Commr. v.]]|[date added: 2023-09-02] supreme 1960 Duncan v. Walker, 533 U.S. 167 (2001) Statute ought to be construed so that no clause, sentence, or word is rendered superfluous, void, or insignificant.||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 2001 DuPont [Deputy v.], 308 U.S. 488 (1940) To qualify as "ordinary", the expense must relate to a transaction "of common or frequent occurrence in the type of business involved".||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] supreme 1940 DuPont [Deputy v.], 308 U.S. 488 (1940) A shareholder is not entitled to a deduction from his individual income for his payment of corporate expenses. "[W]ell established decisions of this court do not permit any such blending of the corporation's business with the business of its stockholders."||[categories: '162', 'business expenses', 'corporations']|[related cases: Welch v. Helvering, Lohrke v. Commr., Pantages Theatre Co. v. Welch]|[date added: 2023-09-02] supreme 1940 DuPont [Deputy v.], 308 U.S. 488 (1940) "Defining 'interest' as compensation for the use or forbearance of money".||[categories: '163', 'interest expense']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Eckert v. Burnet, 283 U.S. 140 (1931) For cash basis taxpayers, an interest deduction requires that the interest be paid in cash or its equivalent.||[categories: '163', 'interest expense']|[related cases: Price [Helvering v.]]|[date added: 2023-09-02] supreme 1931 Eisner v. Macomber, 252 U.S. 189 (1920) "A stock dividend of common stock to the holders of the common stock was not income to the stockholder, taxable by Congress under the Sixteenth Amendment".||[categories: '61', '305(a)', 'constitution', 'corporations', 'gross income', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1920 Enrights Estate [Helvering v.], 312 U.S. 636 (1941) The fact that the distribution of income is prevented by operation of law, or by agreement among private parties, is no bar to its taxability.||[categories: '61', 'gross income', 'partnerships']|[related cases: ]|[date added: 2023-09-02] supreme 1941 Eubank [Commr. v.], 311 U.S. 122 (1940) The assignment of renewal contracts for insurance commissions was an assignment of income rather than an assignment of property. It was income the assignor had already earned.||[categories: '61', 'assignment of income', 'gross income', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Euge [U.S. v.], 444 U.S. 707 (1980) "The summons power [of the IRS] has consistently been interpreted as a broad mandate, designed to give the [IRS] the 'authority * * * necessary for the effective enforcement of the revenue laws.'"||[categories: '7602', 'summons']|[related cases: ]|[date added: 2023-09-02] supreme 1980 Euge [U.S. v.], 444 U.S. 707 (1980) The IRS may compel handwriting exemplars under its summons authority.||[categories: '7602', 'summons']|[related cases: ]|[date added: 2023-09-02] supreme 1980 F. & R. Lazarus & Co. [Helvering v.], 308 U.S. 252 (1939) In some circumstances, a taxpayer may rely on substance over form.||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] supreme 1939 F. & R. Lazarus & Co. [Helvering v.], 308 U.S. 252 (1939) Although there are no specific provisions in the U.S. tax laws governing the differentiation of true leases and conditional purchases, the substance of the transactions, not the form, will govern the nature of the lease.||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] supreme 1939 F. & R. Lazarus & Co. [Helvering v.], 308 U.S. 252 (1939) "In the field of taxation, administrators of the laws and the courts are concerned with substance and realities, and formal written documents are not rigidly binding."||[categories: 'substance over form']|[related cases: Kraut v. Commr., Cooper v. Commr., Harbor Bancorp v. Commr.]|[date added: 2023-09-02] supreme 1939 Fausner v. Commr., 413 U.S. 838 (1973) A taxpayer's costs of commuting between his or her residence and place of business are generally nondeductible personal expenses, regardless of the distances involved.||[categories: '162', 'travel expenses']|[related cases: Flowers [Commr. v.], Mazzotta v. Commr.]|[date added: 2023-09-02] supreme 1973 Fink [Commr. v.], 483 U.S. 89 (1987) A payment to a corporation can be a capital contribution even if some shareholders contribute less than others or nothing at all.||[categories: '118', 'contributions to capital']|[related cases: ]|[date added: 2023-09-02] supreme 1987 Fink [Commr. v.], 483 U.S. 89 (1987) A dominant (controlling) shareholder who voluntarily surrenders a portion of his stock to the corporation, and continues to retain control, does not sustain an immediate loss deductible for income tax purposes as a result of the surrender of stock. Rather, the surrendering shareholder must reallocate his basis in the surrendered stock to the stock retained.||[categories: '165', 'losses']|[related cases: ]|[date added: 2023-09-02] supreme 1987 First Security Bank of Utah [Commr. v.], 405 U.S. 394 (1972) The IRS cannot use section 482 to allocate income to a taxpayer who could not legally receive said income.||[categories: '482', 'international', 'transfer pricing']|[related cases: ]|[date added: 2023-09-02] supreme 1972 Flora v. U.S., 362 U.S. 145 (1960) Income tax is imposed on a unitary basis that precludes suits based on partial payment. [Full payment rule.]||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1960 Flowers [Commr. v.], 326 U.S. 465 (1946) "The exigencies of business rather than the personal conveniences and necessities of the traveler must be the motivating factors" for the travel.||[categories: '162', 'tax101', 'travel expenses']|[related cases: Fausner v. Commr., Mazzotta v. Commr.]|[date added: 2023-09-02] supreme 1946 Fondren v. Commr., 324 U.S. 18 (1945) A future interest is one that is "limited to commence in use, possession, or enjoyment at some future date or time." It is not enough to bring the exclusion into force that the donee has vested rights. He must have the right presently to use, possess or enjoy the property. ||[categories: '2503(b)', 'estate and gift taxes']|[related cases: Disston [Commr. v.], Pelzer [U.S. v.]]|[date added: 2023-09-02] supreme 1945 Ford v. Valencia, 452 U.S. 205 (1981) "[A]bsent some obvious repugnance to the statute, the * * * [agency's] regulation implementing this legislation should be accepted by the courts, as should the * * * [agency's] interpretation of its own regulation".||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1981 France v. Saks, 470 U.S. 392 (1985) "[I]n interpreting a treaty it is proper, of course, to refer to the records of its drafting and negotiation."||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1985 Frank Lyon Co. v. U.S., 435 U.S. 561 (1978) Tax reduction is an acceptable goal as long as the reduction involves transactions with substance and is by legal means.||[categories: 'substance over form', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1978 Frank Lyon Co. v. U.S., 435 U.S. 561 (1978) A transaction will be respected for tax purposes only if: (1) it has economic substance compelled by business or regulatory realities; (2) it is imbued with tax-independent considerations; and (3) it is not shaped totally by tax avoidance features.||[categories: 'economic substance', 'substance over form', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1978 Central States Pension Fund v. Cent. Transp., Im, 472 U.S. 559 (1985) A trust is generally denoted by the vesting of duties in a trustee, including a duty to preserve and maintain trust assets.||[categories: 'trusts']|[related cases: ]|[date added: 2023-09-02] supreme 1985 Galletti [U.S. v.], 541 U.S. 114 (2004) Assessment is "little more than the calculation or recording of a tax liability".||[categories: 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 2004 General Utilities & Operating Co. v. Helvering, 296 U.S. 200 (1935) A distributing corporation generally recognizes no gain or loss on distributions of property with respect to its stock. [Repealed in the Tax Reform Act of 1986]||[categories: '336', 'corporations']|[related cases: ]|[date added: 2023-09-02] supreme 1935 Generes [U.S. v.], 405 U.S. 93 (1972) In determining whether a bad debt qualifies as a business bad debt, a taxpayer's trade or business must be the "dominant motivation" for the loan.||[categories: '166', 'bad debt expense', 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1972 Germantown Trust v. Commr., 309 U.S. 304 (1940) A trust company filed a Form 1041 fiduciary return. At a later time it was held that the trust should have been taxed as a corporation. The filing of the Form 1041 by a fiduciary in good faith commenced the running of the statute of limitations for assessment of corporate income tax.||[categories: '6501', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Germantown Trust v. Commr., 309 U.S. 304 (1940) A taxp​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​ayer who filed its return on an improper form nevertheless triggered the statute of limitations because the return “contained all of the data from which a tax could be computed and assessed although it did not purport to state any amount due as tax.||[categories: '6501', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Gillette Motor Co. [Commr. v.], 364 U.S. 130 (1960) "[C]apital asset" does not include compensation awarded taxpayer that represented fair rental value of its facilities.||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] supreme 1960 Gilmore [U.S. v.], 372 U.S. 39 (1963) The taxpayer was not entitled to deduct legal expenses incurred in divorce proceedings in which his spouse sought a share of his controlling interests in three corporations because his spouse's claims stemmed from the marital relationship, not from income-producing activity. (origin of the claim doctrine)||[categories: 'origin of the claim doctrine', 'other', 'tax101']|[related cases: Fleischman v. Commr.]|[date added: 2023-09-02] supreme 1963 Gitlitz v. Commr., 531 U.S. 206 (2001) "Subchapter S allows shareholders of qualified corporations to elect a 'pass-through' taxation system under which income is subjected to only one level of taxation."||[categories: '1361', 'S corporations', 'corporations', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 2001 Glenshaw Glass Co. [Commr. v.], 348 U.S. 426 (1955) "Broadly construing gross income as 'undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion'".||[categories: '61', 'gross income', 'tax101']|[related cases: Bruun [Helvering v.], Burke [U.S. v.]]|[date added: 2023-09-02] supreme 1955 Goodyear [U.S. v.], 493 U.S. 132 (1989) "Tax provisions should generally be read to incorporate domestic tax concepts absent a clear Congressional expression that foreign concepts control."||[categories: '901', 'foreign tax credit', 'international']|[related cases: Biddle v. Commr.]|[date added: 2023-09-02] supreme 1989 Gordon [Commr. v.], 391 U.S. 83 (1968) "[I]f one transaction is to be characterized as a 'first step' there must be a binding commitment to take the later steps".||[categories: 'substance over form']|[related cases: Gordon v. Commr., Superior Trading, LLC v. Commr., Associated Wholesale Grocers Inc. v. U.S., Associated Wholesale Grocers Inc. v. U.S.]|[date added: 2023-09-02] supreme 1968 Gould v. Gould, 245 U.S. 151 (1917) "In [the] case of doubt * * * [statutes levying taxes] are construed most strongly against the government, and in favor of the citizen." [no longer enjoys universal approval]||[categories: 'statutory construction']|[related cases: Royal Caribbean Cruises Ltd. v. U.S., Weingarden v. Commr.]|[date added: 2023-09-02] supreme 1917 Grace [Estate of] [U.S. v.], 395 U.S. 316 (1969) The reciprocal trust doctrine, another application of substance over form, has been used in the estate and gift tax area to determine who is the transferor of property for the purposes of inclusion in the gross estate.||[categories: '2036', 'estate and gift taxes', 'substance over form']|[related cases: ]|[date added: 2023-09-02] supreme 1969 Greenlaw v. U.S., 554 U.S. 237 (2008) "[I]n our adversary system, in both civil and criminal cases, in the first instance and on appeal, we follow the principle of party presentation. That is, we rely on the parties to frame the issues for decision and assign to courts the role of neutral arbiter of matters the parties present."||[categories: 'other']|[related cases: Muhich v. Commr., Penn v. Robertson]|[date added: 2023-09-02] supreme 2008 Gregory v. Helvering, 293 U.S. 465 (1935) Where a transaction on its face lies outside the plain intent of a statute, the general premise--that taxpayers have the right to avoid their taxes by whatever means allowed by law--does not apply and that "[t]o hold otherwise would be to exalt artifice above reality and to deprive the statutory provision in question of all serious purpose".||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] supreme 1935 Griffiths v. Helvering, 308 U.S. 355 (1939) "[W]e cannot too often reiterate that 'taxation is not so much concerned with the refinements of title as it is with actual command over the property taxed--the actual benefit for which the tax is paid.'"||[categories: 'substance over form']|[related cases: Corliss v. Bowers, P.G. Lake, Inc. [Commr. v.]]|[date added: 2023-09-02] supreme 1939 Groetzinger [Commr. v.], 480 U.S. 23 (1987) "[W]e accept the fact that to be engaged in a trade or business, the taxpayer must be involved in the activity with continuity and regularity * * *. A sporadic activity * * * does not qualify."||[categories: 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1987 Groetzinger [Commr. v.], 480 U.S. 23 (1987) "The Code has never contained a definition of the words 'trade or business' for general application, and no regulation has been issued expounding its meaning for all purposes".||[categories: 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1987 Haggar Co. v. Helvering, 308 U.S. 389 (1940) "A timely amended return is as much a 'first return' * * * as is a single return filed by taxpayer for the first tax year." [superseding return]||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Haines v. Kerner, 404 U.S. 519 (1972) Pro se's pleading held "to less stringent standards than formal pleadings drafted by lawyers".||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1972 Halper [U.S. v.], 490 U.S. 435 (1989) The "civil" label does not determine whether a sanction is punishment.||[categories: 'penalties']|[related cases: ]|[date added: 2023-09-02] supreme 1989 Hamdan v. Rumsfeld, 548 U.S. 557 (2006) "A familiar principle of statutory construction * * * is that a negative inference may be drawn from the exclusion of language from one statutory provision that is included in other provisions of the same statute."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 2006 Hammel [Helvering v.], 311 U.S. 504 (1941) A foreclosure is a "sale" precipitating the recognition of gain or loss.||[categories: '1001', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] supreme 1941 Hanover Bank v. Commr., 369 U.S. 672 (1962) Although private letter rulings are not precedent * * * , they do reveal the interpretation put upon the statute by the agency charged with the responsibility of administering the revenue laws.||[categories: 'authorities']|[related cases: Rowan v. U.S.]|[date added: 2023-09-02] supreme 1962 Hansen [Commr. v.], 360 U.S. 446 (1959) In construing §446 and its predecessors, the Court has held that "[t]he Commissioner has broad powers in determining whether accounting methods used by a taxpayer clearly reflect income."||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] supreme 1959 Harmel [Burnet v.], 287 U.S. 103 (1932) State law creates legal interests whereas federal law determines how and when those interests should be taxed.||[categories: 'other']|[related cases: Morgan v. Commr., Morgan v. Commr., Stuart [Helvering v.], Mitchell v. Commr., Vissering v. Commr.]|[date added: 2023-09-02] supreme 1932 Harrison v. Schaffner, 312 U.S. 579 (1941) “Drawing the line” is a recurrent difficulty in those fields of the law where differences in degree produce ultimate differences in kind.||[categories: 'other']|[related cases: Irwin v. Gavit]|[date added: 2023-09-02] supreme 1941 Harrison v. Schaffner, 312 U.S. 579 (1941) A person cannot escape taxation by anticipatory assignments, however skillfully devised, where the right to receive income has vested.||[categories: '61', 'assignment of income', 'gross income', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1941 Healy v. Commr., 345 U.S. 278 (1953) A taxpayer who lawfully acquires cash receives gross income in the taxable year that he or she lawfully acquires the cash, even though he or she makes restitution in a later year. [claim of right doctrine]||[categories: '1341', 'claim of right doctrine', 'timing']|[related cases: Lewis [U.S. v.], North American Oil Consolidated v. Burnet]|[date added: 2023-09-02] supreme 1953 Hecht v. Malley, 265 U.S. 144 (1924) A trust may be classified as a corporation even if the beneficiaries do not have such control as is commonly exercised by stockholders and even if they do not hold meetings to elect representatives.||[categories: 'corporations', 'entity classification', 'trusts']|[related cases: ]|[date added: 2023-09-02] supreme 1924 Heininger [Commr. v.], 320 U.S. 467 (1943) A dentist who sold mail order false teeth was allowed to deduct legal fees stemming from allegations that he made fraudulent claims regarding the quality of his product. Finding that there was "no doubt that the legal expenses of [taxpayer] were directly connected with 'carrying on' his business," the Court determined that the expenditures were ordinary and necessary.||[categories: '162', 'business expenses', 'public policy']|[related cases: Lilly v. Commr.]|[date added: 2023-09-02] supreme 1943 Heininger [Commr. v.], 320 U.S. 467 (1943) A necessary expense is one that is appropriate or helpful in carrying on petitioner's trade or business.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] supreme 1943 Hendler [U.S. v.], 303 U.S. 564 (1938) Any assumption of liability by the transferee [in a 351 exchange] would be considered a payment of money or property to the transferor, causing the transferor to recognize income. Congress reacted immediately by enacting [section 357(a)] , which provided that the assumption of a liability should not be considered the payment of property or money and should not provoke the recognition of gain.||[categories: '351', '357', 'corporations']|[related cases: ]|[date added: 2023-09-02] supreme 1938 Hernandez v. Commr., 490 U.S. 680 (1989) A charitable contribution includes a gift of property to a charitable organization, made with charitable intent and without the receipt or expectation of receipt of adequate consideration.||[categories: '170', 'charitable contributions']|[related cases: American Bar Endowment [U.S. v.]]|[date added: 2023-09-02] supreme 1989 Hernandez v. Commr., 490 U.S. 680 (1989) "[P]etitioners' claimed exemption stems from the contention that an incrementally larger tax burden interferes with their religious activities. This argument knows no limitation. We accordingly hold that petitioners' free exercise challenge is without merit."||[categories: 'constitution']|[related cases: ]|[date added: 2023-09-02] supreme 1989 Higgins v. Commr., 312 U.S. 212 (1941) Managing securities investments and collecting income therefrom generally is not a trade or business, regardless of the amount invested, continuity of effort, or amount of time devoted to the activity.||[categories: '162', 'business expenses']|[related cases: King v. Commr.]|[date added: 2023-09-02] supreme 1941 Higgins v. Smith, 308 U.S. 473 (1940) A taxpayer may conduct his business in whatever form he chooses and "must accept the [resulting] tax disadvantages."||[categories: 'tax101']|[related cases: National Alfalfa Dehydrating & Milling [Commr. v.], Bean [Estate of] v. Commr.]|[date added: 2023-09-02] supreme 1940 Higgins v. Smith, 308 U.S. 473 (1940) Taxpayers may not structure a paper entity to avoid tax when the entity lacks economic substance, and we may disregard a taxpayer's chosen business form where that form is a sham and inconsistent with economic reality.||[categories: 'economic substance', 'substance over form']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Hillsboro National Bank v. Commr., 460 U.S. 370 (1983) The tax benefit rule ordinarily applies to require the inclusion of income when events occur that are fundamentally inconsistent with an earlier deduction.||[categories: '61', '1341', 'gross income', 'other', 'tax benefit rule']|[related cases: ]|[date added: 2023-09-02] supreme 1983 Hilton Hotels Corp. [U.S. v.], 397 U.S. 580 (1970) Fees paid to a consulting firm and the cost of legal and other professional services incurred in connection with appraisal proceeding to value shares of dissenting shareholders in merged corporation were capital expenditures.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] supreme 1970 Holland v. U.S., 348 U.S. 121 (1954) "[E]vidence of a consistent pattern of underreporting large amounts of income" supports "an inference of willfulness".||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] supreme 1954 Holland v. U.S., 348 U.S. 121 (1954) Upholding the net worth method of reconstructing income.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1954 Horst [Helvering v.], 311 U.S. 112 (1940) "A father, who detached negotiable interest coupons from bonds shortly before the due date of the coupons and gave them to his son, realized the interest income from the coupons."||[categories: '61', 'gross income', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Hort v. Commr., 313 U.S. 28 (1941) Since unrealized rent is not includable in cash method taxpayer's gross income, taxpayer has no grounds for deduction of the rental payments he failed to realize.||[categories: 'basis', 'tax101']|[related cases: Hutcheson v. Commr., Tonn v. Commr., Hendricks v. Commr.]|[date added: 2023-09-02] supreme 1941 Hughes Properties [U.S. v.], 476 U.S. 593 (1986) Section 446 grants the Commissioner broad discretion in matters of accounting and gives the Commissioner wide latitude to adjust a taxpayer's method of accounting so as to reflect income clearly.||[categories: '446', 'accounting methods']|[related cases: Thor Power Tool Co. v. Commr.]|[date added: 2023-09-02] supreme 1986 Hughes Properties [U.S. v.], 476 U.S. 593 (1986) The all-events test is the foundation of accrual accounting and a "fundamental principle of tax accounting."||[categories: '451', '461', 'all-events test', 'tax101', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1986 Hughes Properties [U.S. v.], 476 U.S. 593 (1986) To satisfy the all-events test, a liability must be "final and definite in amount," must be "fixed and absolute," and must be "unconditional."||[categories: '461', 'all-events test', 'tax101', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1986 Idaho Power Co. [Commr. v.], 418 U.S. 1 (1974) Construction-related depreciation cannot be currently deducted "rather, the investment in the equipment is assimilated into the cost of the capital asset constructed."||[categories: '263', 'capital expenditures', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1974 Idaho Power Co. [Commr. v.], 418 U.S. 1 (1974) "[C]apitalization prevents the distortion of income that would otherwise occur if depreciation properly allocable to asset acquisition were deducted from gross income currently realized."||[categories: '263', 'capital expenditures', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1974 Indianapolis Power & Light [Commr. v.], 493 U.S. 203 (1990) Regarding deposits vs. advance payments, "in determining whether a taxpayer enjoys 'complete dominion', * * * the key is whether the taxpayer has some guarantee that he will be allowed to keep the money."||[categories: '451', 'tax101', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1990 INDOPCO v. Commr., 503 U.S. 79 (1992) To qualify for deduction under section 162(a), an item must (1) be paid or incurred during the taxable year, (2) be for carrying on any trade or business, (3) be an expense, (4) be a necessary expense, and (5) be an ordinary expense.||[categories: '162', 'business expenses', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1992 INDOPCO v. Commr., 503 U.S. 79 (1992) Deductions are strictly a matter of legislative grace, and taxpayers bear the burden of proving their entitlement to any deduction claimed.||[categories: 'trial procedure']|[related cases: Interstate Transit Lines v. Commr., New Colonial Ice Co., Inc. v. Commr., Welch v. Helvering, Higbee v. Commr.]|[date added: 2023-09-02] supreme 1992 Interstate Transit Lines v. Commr., 319 U.S. 590 (1943) "[A]n income tax deduction is a matter of legislative grace and that the burden of clearly showing the right to the claimed deduction is on the taxpayer."||[categories: 'trial procedure']|[related cases: INDOPCO v. Commr., New Colonial Ice Co., Inc. v. Commr., Welch v. Helvering, Higbee v. Commr.]|[date added: 2023-09-02] supreme 1943 Irwin v. Gavit, 268 U.S. 1 Neither are we troubled by the question where to draw the line. That is the question in pretty much everything worth arguing in the law.||[categories: 'other']|[related cases: Harrison v. Schaffner]|[date added: 2023-09-02] supreme 1925 Jacobson [Commr. v.], 336 U.S. 28 (1949) Exempt​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​ions and exclusions from taxable income are construed narrowly, and the taxpayers must bring themselves within the clear scope of the exclusions.||[categories: 'exemptions']|[related cases: Bingler v. Johnson]|[date added: 2023-09-02] supreme 1949 James v. U.S., 366 U.S. 213 (1961) Embezzled funds constitute gross income to embezzler in year funds were misappropriated.||[categories: '61', '451', 'gross income', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1961 James v. U.S., 550 U.S. 192 (2007) A word should be interpreted "in a manner that makes it 'fit' with the words with which it is closely associated."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 2007 John A. Nelson Co. v. Helvering, 296 U.S. 374 (1935) A transfer of assets from one corporation to another constituted a reorganization (i.e., met the continuity of interest requirement) where there was a transfer of assets for preferred stock and cash.||[categories: '368', 'continuity of interest', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1935 John Kelley [The] Company v. Commr., 326 U.S. 521 (1946) In weighing the evidence favoring characterization of an advance as debt or equity, the various factors are not of equal significance, and no one factor is controlling.||[categories: '385', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] supreme 1946 Johnson v. Browne, 205 U.S. 309 (1907) Repeals by implication are never favored, and a later treaty will not be regarded as repealing an earlier statute by implication, unless the two are absolutely incompatible and the statute cannot be enforced without antagonizing the treaty. ||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1907 Jones v. Liberty Glass Co., 332 U.S. 524 (1947) Defining an overpayment as "any payment in excess of that which is properly due".||[categories: 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1947 Kirby Lumber [U.S. v.], 284 U.S. 1 (1931) Generally, the difference between the face value of a debt and the amount paid in satisfaction of a debt is treated as taxable income to the debtor from discharge of the indebtedness. [freeing-of-assets theory]||[categories: '61', '108', 'cancellation of indebtedness income', 'gross income']|[related cases: ]|[date added: 2023-09-02] supreme 1931 Knetsch v. U.S., 364 U.S. 361 (1960) Recharacterizing a "loan" that had no business function or true obligation to pay.||[categories: 'loan/debt', 'substance over form']|[related cases: ]|[date added: 2023-09-02] supreme 1960 Knight v. Commr., 552 U.S. 181 (2008) "Above-the-line" deduction is not defined by the code; however, the term is understood to mean a deduction applied against gross income in calculating AGI.||[categories: 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 2008 Kolovrat v. Oregon, 366 U.S. 187 (1961) "[W]hile courts interpret treaties for themselves, the meaning given them by the departments of government particularly charged with their negotiation and enforcement is given great weight."||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1961 Koshland v. Helvering, 298 U.S. 441 (1936) "[W]here, as in this case, the provisions of the act are unambiguous, and its directions specific, there is no power to amend it by regulation".||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1936 Kowalski [Commr. v.], 434 U.S. 77 (1977) Cash payments designated as meal allowances to state police troopers are not excludable under section 119.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] supreme 1977 La Franca [U.S. v.], 282 U.S. 568 (1931) "[A] penalty, as the word is here used, is an exaction imposed by statute as punishment for an unlawful act".||[categories: 'penalties']|[related cases: ]|[date added: 2023-09-02] supreme 1931 Laing v. U.S., 423 U.S. 161 (1976) A deficiency for a given year, reduced to its simplest terms, is the correct amount of tax less the amount shown as tax on the tax return.||[categories: 'deficiency', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1976 Lane-Wells Co. [Commr. v.], 321 U.S. 219 (1944) Unsigned return that discloses no information relating to a taxpayer's income not a return.||[categories: '6501', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] supreme 1944 Lane-Wells Co. [Commr. v.], 321 U.S. 219 (1944) The filing in good faith of a Form 1120 corporate income tax return, in which the corporation denied it was a personal holding company, was not sufficient to start the running of the limitation period for personal holding company surtax (which should have been computed on Form 1120H).||[categories: '6501', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] supreme 1944 Lane-Wells Co. [Commr. v.], 321 U.S. 219 (1944) The purpose of filing requirements “is not alone to get tax information in some form but also to get it with such uniformity, completeness, and arrangement that the physical task of handling and verifying returns may be readily accomplished.”)||[categories: '6501', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] supreme 1944 LaSalle National Bank [U.S. v.], 437 U.S. 298 (1978) To succeed on an abuse of process claim, a taxpayer must show bad faith by the IRS as an institution, not just an individual agent.||[categories: '7602', 'summons']|[related cases: ]|[date added: 2023-09-02] supreme 1978 Le Gierse [Helvering v.], 312 U.S. 539 (1943) Insurance entails risk shifting and risk distribution.||[categories: 'insurance', 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1943 Lee [U.S. v.], 455 U.S. 252 (1982) "Religious belief in conflict with the payment of taxes affords no basis for resisting the tax[.]"||[categories: 'constitution']|[related cases: ]|[date added: 2023-09-02] supreme 1982 Lester [Commr. v.], 366 U.S. 299 (1961), (Douglas, J., concurring) "[T]he revenue laws have become so complicated and intricate that * * * the government in moving against the citizen should also turn square corners."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1961 LeTulle v. U.S., 308 U.S. 415 (1940) There was no "continuity of interest on the part of the transferor corporation or its stockholders" where there was a transfer of assets from one corporation to another for cash and bonds.||[categories: '368', 'continuity of interest', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1940 Lewis [U.S. v.], 340 U.S. 590 (1951) Under the claim of right doctrine, a taxpayer must determine its income at the end of the tax year without regard to possible subsequent events. ||[categories: '1341', 'claim of right doctrine']|[related cases: Healy v. Commr., North American Oil Consolidated v. Burnet]|[date added: 2023-09-02] supreme 1951 Lewis v. Reynolds, 284 U.S. 281 (1932) A taxpayer is entitled to a refund only if he has "overpaid" his tax. Although the statute of limitations may have barred the assessment and collection of any additional sum, it does not obviate the right of the United States to retain payments already received when they do not exceed the amount which might have been properly assessed and demanded. [setoff]||[categories: '6501', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] supreme 1932 Lilly v. Commr., 343 U.S. 90 (1952) Payments by opticians to eye doctors for referrals were ordinary and necessary business expenses. The payments were not nondeductible on the grounds that they were against public policy.||[categories: '162', 'business expenses', 'public policy']|[related cases: Heininger [Commr. v.]]|[date added: 2023-09-02] supreme 1952 Lo Bue [Commr. v.], 351 U.S. 243 (1956) A gift is made with detached and disinterested generosity.||[categories: '61', '102', 'estate and gift taxes', 'gross income']|[related cases: Bogardus v. Commr., Duberstein [Commr. v.]]|[date added: 2023-09-02] supreme 1956 Logan [Burnet v.], 283 U.S. 404 (1931) When it cannot be determined whether payments received will, at some future date, represent income or a return of capital, they are not taxed until their character becomes fixed. [open transaction doctrine]||[categories: 'open transaction doctrine', 'other']|[related cases: Underhill v. Commr.]|[date added: 2023-09-02] supreme 1931 Lucas v. Earl, 281 U.S. 111 (1930) Taxpayer assigned to wife one-half interest in his earnings. Regardless of the motive behind the assignment of the right to receive income, the "fruit" must be attributed to the "tree."||[categories: '61', 'assignment of income', 'gross income', 'substance over form']|[related cases: ]|[date added: 2023-09-02] supreme 1930 Lyeth v. Hoey, 305 U.S. 188 (1938) Proceeds received in compromise of a dispute are characterized for tax purposes in accordance with the nature of the claims which were compromised.||[categories: 'other', 'settlement payments']|[related cases: Freese v. U.S.]|[date added: 2023-09-02] supreme 1938 Maguire v. Trefry, 253 U.S. 12 (1920) States have the authority to tax their residents' worldwide income.||[categories: 'other', 'state tax']|[related cases: ]|[date added: 2023-09-02] supreme 1920 Marcello v. Bonds, 349 U.S. 302 (1955) Noting that the court could not "ignore the background of the . . . legislation".||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1955 Massachusetts Mutual v. U.S., 288 U.S. 269 (1933) The use of a "hybrid" method of accounting (part accrual and part cash) is not allowed.||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] supreme 1933 Maximov v. U.S., 373 U.S. 49 (1963) Applying the Code in interpreting an undefined treaty term pursuant to a treaty provision deferring to the meaning under the laws of the state whose tax was sought to be applied.||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1963 Mayo Foundation v. U.S., 562 U.S. 44 (2011) "We are not inclined to carve out an approach to administrative review good for tax law only. to the contrary, we have expressly recognized the importance of maintaining a uniform approach to judicial review of administrative action."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 2011 McCarthy v. U.S., 394 U.S. 459 (1969) A guilty plea constitutes an admission of all the elements of the criminal charge.||[categories: 'criminal/fraud']|[related cases: Badaracco v. Commr., Lare v. Commr.]|[date added: 2023-09-02] supreme 1969 McCoy [Commr. v.], 484 U.S. 3 (1987) "[T]he Tax Court is a court of limited jurisdiction and lacks general equitable powers."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1987 Mclaughlin v. Pac. Lumber Co., 293 U.S. 351 (1934) "[A] consolidated return must truly reflect taxable income of the unitary business and consequently it may not be employed to enable the taxpayer to use more than once the same losses for reduction of income."||[categories: 'corporations']|[related cases: ]|[date added: 2023-09-02] supreme 1934 McWilliams v. Commr., 331 U.S. 694 (1947) Section [267] states an absolute prohibition — not a presumption — against the allowance of losses on any sales between the members of certain designated groups. The one common characteristic of these groups is that their members, although distinct legal entities, generally have a near-identity of economic interests.||[categories: 'other', 'related parties']|[related cases: ]|[date added: 2023-09-02] supreme 1947 Mellon [Heiner v.], 304 U.S. 271 (1938) Whether or not a "partner's proportionate share of the net income of the partnership" was distributable was not material to whether it could be taxed.||[categories: 'partnerships']|[related cases: Basye [U.S. v.], First Mechanics Bank v. Commr.]|[date added: 2023-09-02] supreme 1938 Merrill v. Fahs, 324 U.S. 308 (1945) An estate tax statute also extended to the gift tax regime since the gift and estate tax statutes were to be construed together.||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] supreme 1945 Midland-Ross [U.S. v.], 381 U.S. 54 (1965) Original issue discount ("OID") income results when a debt instrument is issued for less than its face value, and earned OID should be taxed as ordinary income. [Now see section 1276]||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] supreme 1965 Miles v. Apex Marine Corp., 498 U.S. 19 (1990) "[W]e assume that Congress is aware of existing law when it passes legislation."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1990 Miller Bros. Co. v. Maryland, 347 U.S. 340 (1954) Complete Auto's nexus requirement is closely related to the due process requirement that there be "some definite link, some minimum connection, between a state and the person, property or transaction it seeks to tax."||[categories: 'constitution', 'other', 'state tax']|[related cases: ]|[date added: 2023-09-02] supreme 1954 Minnesota Tea Co. [Helvering v.], 296 U.S. 378 (1935) A transfer of assets from one corporation to another constituted a reorganization (i.e., met the continuity of interest requirement) where there was a transfer of assets for common stock and cash.||[categories: '368', 'continuity of interest', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1935 Minnesota Tea Co. [Helvering v.], 296 U.S. 378 (1935) To meet the continuity of interest requirement, the "interest must be definite and material; [and] it must represent a substantial part of the value of the thing transferred."||[categories: '368', 'continuity of interest', 'corporations', 'reorganizations']|[related cases: Paulsen v. Commr.]|[date added: 2023-09-02] supreme 1935 Mitchell [U.S. v.], 403 U.S. 190 (1971) "[W]ith respect to community income, as with respect to other income, federal income tax liability follows ownership."||[categories: 'community property', 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1971 Mo. Pac. R. Co. [U.S. v.], 278 U.S. 269 (1929) "Where the language of an enactment is clear, and construction according to its terms does not lead to absurd or impracticable consequences, the words employed are to be taken as the final expression of the meaning intended."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1929 Moline Properties, Inc. v. Commr., 319 U.S. 436 (1943) The doctrine of corporate entity fills a useful purpose in business life. Whether the purpose be to gain advantage under the law of the state of incorporation or to avoid or to comply with the demands of creditors or to serve the creator's personal or undisclosed convenience, so long as that purpose is the equivalent of business activity or is followed by the carrying on of business by the corporation, the corporation remains a separate taxable entity.||[categories: 'corporations', 'tax101']|[related cases: Commonwealth Improv. Co. [Burnet v.], Dalton v. Bowers, New Colonial Ice Co., Inc. v. Commr., Kimbrell v. Commr., Paymer v. Commr., Tomlinson v. Miles]|[date added: 2023-09-02] supreme 1943 Morgan v. Commr., 309 U.S. 78 (1940) "[S]tate law creates legal interests and rights. The federal revenue acts designate what interests or rights, so created, shall be taxed."||[categories: 'other']|[related cases: Harmel [Burnet v.], Morgan v. Commr., Stuart [Helvering v.], Mitchell v. Commr., Vissering v. Commr.]|[date added: 2023-09-02] supreme 1940 Morgan v. Commr., 309 U.S. 78 (1940) Law of​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​ decedent's domicile creates legal interests and rights for estate tax.||[categories: 'estate and gift taxes']|[related cases: Harmel [Burnet v.], Morgan v. Commr., Stuart [Helvering v.], Mitchell v. Commr., Vissering v. Commr.]|[date added: 2023-09-02] supreme 1940 Morrissey v. Commr., 296 U.S. 344 (1935) A trust created for developing tracts of land and constructing and operating a golf course was properly classified and taxed as "an association" (i.e., a business trust), rather than an ordinary trust, based on its "character" and "salient features," including the trustees' "use and adaptation of the trust mechanism."||[categories: 'corporations', 'entity classification', 'trusts']|[related cases: Coleman-Gilbert Associates [Helvering v.], Combs [Helvering v.]]|[date added: 2023-09-02] supreme 1935 Nash v. U.S., 398 U.S. 1 (1970) The tax benefit rule did not require a taxpayer who incorporated a partnership under section 351 to include in income the amount of the bad debt reserve of the partnership||[categories: '1341', 'other', 'tax benefit rule']|[related cases: ]|[date added: 2023-09-02] supreme 1970 National Alfalfa Dehydrating & Milling [Commr. v.], 417 U.S. 134 (1974) "[W]hile a taxpayer is free to organize his affairs as he chooses, nevertheless, once having done so, he must accept the tax consequences of his choice."||[categories: 'tax101']|[related cases: Higgins v. Smith, Bean [Estate of] v. Commr.]|[date added: 2023-09-02] supreme 1974 National Carbide Corporation v. Commr., 336 U.S. 422 (1949) "In determining whether a corporation is an agent of another, a court should consider 'whether the corporation operates in the name and for the account of the principal, binds the principal, by its actions, transmits money received to the principal, and whether receipt of income is attributable to the services of employees of the principal and to assets belonging to the principal.'"||[categories: '61', 'agency', 'gross income']|[related cases: Bollinger [Commr. v.]]|[date added: 2023-09-02] supreme 1949 National Muffler Dealers Association v. U.S., 440 U.S. 472 (1979) Interpretative federal tax regulation is reasonable only if it "harmonizes with the plain language of the statute, its origin, and its purpose".||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1979 National Paper & Type Co. v. Bowers, 266 U.S. 373 (1924) It was not unreasonable to levy a tax on domestic corporations which manufactured in this country and sold abroad, whereas foreign corporations which similarly manufactured and sold would not be taxed.||[categories: '11(d)', 'international']|[related cases: ]|[date added: 2023-09-02] supreme 1924 Natl. Grocery Co. [Helvering v.], 304 U.S. 282 (1938) The trier of fact is not bound by any expert witness's opinion and may accept or reject expert testimony, in whole or in part, in the exercise of sound judgment.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1938 New Colonial Ice Co., Inc. v. Commr., 292 U.S. 435 (1934) "An income tax deduction is a matter of legislative grace and * * * the burden of clearly showing the right to the claimed deduction is on the taxpayer."||[categories: 'tax101', 'trial procedure']|[related cases: INDOPCO v. Commr., Interstate Transit Lines v. Commr., Welch v. Helvering, Higbee v. Commr.]|[date added: 2023-09-02] supreme 1934 New Colonial Ice Co., Inc. v. Commr., 292 U.S. 435 (1934) A corporation and its shareholders are separate entities and the business of a corporation is separate from that of its shareholders.||[categories: 'tax101']|[related cases: Commonwealth Improv. Co. [Burnet v.], Dalton v. Bowers, Moline Properties, Inc. v. Commr., Kimbrell v. Commr., Paymer v. Commr., Tomlinson v. Miles]|[date added: 2023-09-02] supreme 1934 Nielsen v. Johnson, 279 U.S. 47 (1929) "Treaties are to be liberally construed, so as to effect the apparent intention of the parties."||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1929 North American Oil Consolidated v. Burnet, 286 U.S. 417 (1932) Income received under a claim of right is taxable in the year received even though the recipient may be under a contingent obligation to return it at a later time.||[categories: '1341', 'claim of right doctrine']|[related cases: Healy v. Commr., Lewis [U.S. v.]]|[date added: 2023-09-02] supreme 1932 North Texas Lumber [Commr. v.], 281 U.S. 11 (1930) To satisfy the all-events test, a liability must be "unconditional."||[categories: '461', 'all-events test', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1930 O'Connor v. U.S., 479 U.S. 27 (1986) "The course of conduct of parties to an international agreement, like the course of conduct of parties to any contract, is evidence of its meaning."||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1986 Ohler v. U.S., 529 U.S. 753 (2000) "[G]enerally, a party introducing evidence cannot complain on appeal that the evidence was erroneously admitted."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 2000 Old Colony Trust Co. v. Commr., 279 U.S. 716 (1929) Payment by an employer of an employee's income tax obligation in consideration of the employee's services performed on behalf of the employer constitutes income to the employee.||[categories: '61', 'gross income', 'tax101']|[related cases: Douglas v. Willcuts]|[date added: 2023-09-02] supreme 1929 Olson v. U.S., 292 U.S. 246 (1934) "[E]lements affecting value that depend upon events or combinations of occurrences which, while within the realm of possibility, are not fairly shown to be reasonably probable should be excluded from consideration for that would be to allow mere speculation and conjecture to become a guide for the ascertainment of value[.]"||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] supreme 1934 O'Malley [U.S. v.], 383 U.S. 627 (1966) The purpose behind the predecessor to section 2036(a) was to tax all property that had been the "subject of an incomplete inter vivos transfer".||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] supreme 1966 Ox Fibre Brush Co. [Lucas v.], 281 U.S. 115 (1930) It is permissible to pay and deduct compensation for services performed in prior years.||[categories: '461', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1930 P.G. Lake, Inc. [Commr. v.], 356 U.S. 260 (1958) Under the "substitute for ordinary income doctrine", a court narrowly construes the term "capital asset" when taxpayers make attempts to transform ordinary income into capital gain.||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] supreme 1958 P.G. Lake, Inc. [Commr. v.], 356 U.S. 260 (1958) The real import of the transaction must be determined "not by subtleties of draftsmanship but by their total effect."||[categories: 'substance over form']|[related cases: Corliss v. Bowers, Griffiths v. Helvering]|[date added: 2023-09-02] supreme 1958 P.G. Lake, Inc. [Commr. v.], 356 U.S. 260 (1958) A right to receive a future payment of ordinary income is not a capital asset.||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] supreme 1958 Pacific National Company v. Welch, 304 U.S. 191 (1938) Belated attempts to change accounting methods “would require recomputation and readjustment of tax liability for subsequent years and impose burdensome uncertainties upon the administration of the revenue laws.” Once a taxpayer has reported income according to a particular method it must live with that choice.||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] supreme 1938 Palm Springs Holding Corporation v. Commr., 315 U.S. 185 (1942) The bondholders "stepped into the shoes of the old stockholders." They acquired the equivalent of the proprietary interest of the old equity owners.||[categories: '368', 'corporations', 'reorganizations', 'substance over form']|[related cases: Alabama Asphaltic Limestone Co. [Helvering v.], Cement Investors, Inc. [Helvering v.]]|[date added: 2023-09-02] supreme 1942 Palmer v. Bender, 287 U.S. 551 (1933) Whether moneys received were proceeds from the sale of capital assets or were ordinary income under a lease agreement depends on whether the taxpayer retained an economic interest in the minerals in place. An economic interest sufficient to justify the allowance for depletion exists where a taxpayer has: (1) "acquired, by investment, any interest in * * * [the minerals] in place," and (2) secured by legal relationship "income derived from the extraction of * * * [the minerals], to which he must look for a return of his capital."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1933 Palmer v. Commr., 302 U.S. 63 (1937) For a transaction to be treated as a deemed dividend, "it is at least necessary to make some showing that the transaction is in purpose or effect used as an implement for the distribution of corporate earnings to stockholders".||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] supreme 1937 Paulsen v. Commr., 469 U.S. 131 (1985) To meet the continuity of interest requirement, "the taxpayer's ownership interest in the prior organization must continue in a meaningful fashion in the reorganized enterprise."||[categories: '368', 'continuity of interest', 'corporations', 'reorganizations']|[related cases: Minnesota Tea Co. [Helvering v.]]|[date added: 2023-09-02] supreme 1985 Payne [U.S. v.], 264 U.S. 446 (1924) A later-enacted statute, while controlling in case of conflict, "should be harmonized with the letter and spirit of the treaty, so far as that reasonably can be done".||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1924 Pelzer [U.S. v.], 312 U.S. 399 (1941) Interests of beneficiaries were so postponed as to use and enjoyment that the interests were future, as distinguished from present, interests and no annual gift exclusion under section 2503(b) was available.||[categories: '2503(b)', 'estate and gift taxes']|[related cases: Disston [Commr. v.], Fondren v. Commr.]|[date added: 2023-09-02] supreme 1941 Perrin v. U.S., 444 U.S. 37 (1979) "[A] fundamental canon of statutory construction is that, unless otherwise defined, words will be interpreted as taking their ordinary, contemporary, common meaning".||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1979 Peurifoy v. Commr., 358 U.S. 59 (1958) A taxpayer's residence, when different from the vicinity of his principal place of employment, may be treated as his tax home if the taxpayer's employment is "temporary" rather than "indefinite".||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] supreme 1958 Phipps [Commr. v.], 336 U.S. 410 (1949) A parent corporation could not reduce its own credit balance in earnings and profits by the amount of accumulated deficits of four of the five subsidiaries which it had liquidated tax-free.||[categories: '312', '332', 'E&P', 'corporations', 'liquidations']|[related cases: ]|[date added: 2023-09-02] supreme 1949 Pilliod Lumber Co. [Lucas v.], 281 U.S. 245 (1930) An unsigned document does not rise to the level of a "return," and therefore such a document does not start the running of the statute of limitations against the IRS.||[categories: '6501', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] supreme 1930 Pinellas Ice Co. v. Commr., 287 U.S. 462 (1932) There was no "continuity of interest on the part of the transferor corporation or its stockholders" where there was a transfer of assets from one corporation to another for cash and short-term notes.||[categories: '368', 'continuity of interest', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1932 Piper v. Chris-Craft Indus., 430 U.S. 1 (1977) "[R]eliance on legislative history in divining the intent of Congress is, as has often been observed, a step to be taken cautiously."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1977 Poe v. Seaborn, 282 U.S. 101 (1930) The taxpayer was taxable on only one-half of his earnings because, under the community property laws of the State in which he and his wife resided, the wife had a vested property right in the community property, which included all property acquired by either spouse after marriage. The earnings were never the property of the husband (as in Earl) but that of the community.||[categories: '61', 'community property', 'gross income']|[related cases: ]|[date added: 2023-09-02] supreme 1930 Powell [U.S. v.], 379 U.S. 48 (1964) The IRS must use its summons authority in good faith pursuit of the congressionally authorized purposes. Factors of a "good faith" summons are: (1) the summons has been issued for a legitimate purpose; (2) the inquiry is relevant to that purpose; (3) the information sought is not already in the IRS's possession; and (4) the IRS has followed the administrative steps required by the Internal Revenue Code.||[categories: '7602', 'summons']|[related cases: ]|[date added: 2023-09-02] supreme 1964 Price [Helvering v.], 309 U.S. 409 (1940) A promissory note is generally not considered to be the equivalent of cash but merely a promise to pay.||[categories: 'other']|[related cases: Eckert v. Burnet]|[date added: 2023-09-02] supreme 1940 Price [U.S. v.], 361 U.S. 304 (1960) "The views of a subsequent Congress form a hazardous basis for inferring the intent of an earlier one."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1960 Provost v. U.S., 269 U.S. 443 (1926) A short sale is a sale of securities that are not owned by the seller.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1926 Putnam v. Commr., 324 U.S. 393 (1945) In general, dividend income is taxed to the shareholder who, on the record date, owns the stock with respect to which dividends are paid and who is entitled to receive the dividend.||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] supreme 1945 Putnam v. Commr., 352 U.S. 82 (1956) Taxpayer who voluntarily buys a debt with knowledge that he will not be paid is considered not to have acquired a debt.||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] supreme 1956 Putnam v. Commr., 352 U.S. 82 (1956) "[T]he familiar rule is that, instanter upon the payment by the guarantor of the debt, the debtor's obligation to the creditor becomes an obligation to the guarantor[.]"||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1956 Quality Stores, Inc. [U.S. v.], 572 U.S. 141 (2014) Severance payments qualified as “wages” taxable under the FICA.||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] supreme 2014 Ragen [U.S. v.], 314 U.S. 513 (1942) Determinations "by reference to a standard of 'reasonableness' [are] not unusual under federal income tax laws".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1942 Reinecke v. Spalding, 280 U.S. 227 (1930) The burden rests on the taxpayer to prove not only his entitlement to a tax benefit but also the amount of that benefit.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1930 REO Motors v. Commr., 338 U.S. 442 (1950) NOLs and the carryback and carryforward thereof are determined pursuant to the law applicable to the year in which the losses occurred, without regard to the law applicable to other years to which losses are carried back or forward.||[categories: '172', 'NOLs']|[related cases: ]|[date added: 2023-09-02] supreme 1950 Reynolds [Helvering v.], 313 U.S. 428 (1941) Rulings and regulations are presumed to apply retroactively unless otherwise specified.||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] supreme 1941 Rowan v. U.S., 452 U.S. 247 (1981) Private letter rulings are not regarded as precedent and may not be relied on by the public. However, private letter rulings may be cited to show the practice of the Commissioner.||[categories: 'authorities']|[related cases: Hanover Bank v. Commr.]|[date added: 2023-09-02] supreme 1981 Russello v. U.S. , 464 U.S. 16 (1983) "[W]here Congress includes particular language in one section of a statute but omits it in another section of the same act, it is generally presumed that Congress acts intentionally and purposely in the disparate inclusion or exclusion."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1983 Rutkin v. U.S., 343 U.S. 130 (1952) "A gai​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​n [from extortion] 'constitutes taxable income when its recipient has such control over it that, as a practical matter, he derives readily realizable economic value from it'".||[categories: '61', 'gross income', 'tax101', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1952 Sanford & Brooks [Burnet v.], 282 U.S. 359 (1931) Federal tax statutes are concerned with the determination of taxable income on an annual basis.||[categories: 'annual accounting', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1931 Sanford [Estate of] v. Commr., 308 U.S. 39 (1939) A transfer of property upon trust, with power reserved in the donor to modify the trust so as to designate new beneficiaries other than himself, is incomplete and, therefore, not taxable as a gift.||[categories: 'estate and gift taxes', 'trusts']|[related cases: ]|[date added: 2023-09-02] supreme 1939 Schlude v. Commr., 372 U.S. 128 (1963) An accrual method taxpayer recognizes income when all the events have occurred which fix the right to receive the income and the amount of the income can be determined with reasonable accuracy.||[categories: '451', 'all-events test', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1963 Security Flour Mills v. Commr., 321 U.S. 281 (1944) "A taxpayer may not accrue an expense, the amount of which is unsettled or the liability of which is contingent * * * [the liability must be] final and definite in amount".||[categories: '461', 'all-events test', 'tax101', 'timing']|[related cases: Brown v. Helvering, Dixie Pine Products Co. v. Commr.]|[date added: 2023-09-02] supreme 1944 Service v. Dulles, 354 U.S. 363 (1957) "Regulations validly prescribed by a government administrator are binding upon him as well as the citizen."||[categories: 'authorities', 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1957 Shaffer v. Carter, 252 U.S. 37 (1920) States have the authority to tax nonresidents' in-state income.||[categories: 'constitution', 'other', 'state tax']|[related cases: ]|[date added: 2023-09-02] supreme 1920 Silk [U.S. v.], 331 U.S. 704 (1947) Setting their own hours does not necessarily make workers independent contractors.||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] supreme 1947 Skelly Oil [U.S. v.], 394 U.S. 678 (1969) The result of a prior audit ordinarily does not bind the Commissioner because each tax year is to be considered separately.||[categories: 'annual accounting']|[related cases: ]|[date added: 2023-09-02] supreme 1969 Skelly Oil [U.S. v.], 394 U.S. 678 (1969) Under the claim of right doctrine, a taxpayer must report income in the year in which it was received, even if the taxpayer could be required to return the income at a later time but would then be entitled to a deduction in the year of that repayment.||[categories: '1341', 'annual accounting', 'claim of right doctrine']|[related cases: ]|[date added: 2023-09-02] supreme 1969 Skelly Oil [U.S. v.], 394 U.S. 678 (1969) No deduction may be taken for an expense that is associated with an income item unless that income has been reported in the taxpayer's gross income for the current year or some previous year.||[categories: '1341', 'claim of right doctrine']|[related cases: ]|[date added: 2023-09-02] supreme 1969 Slodov v. U.S., 436 U.S. 238 (1978) Under section 6672 "the officers or employees of the employer responsible for effectuating the collection and payment of trust-fund taxes who willfully fail to do so are made personally liable to a 'penalty' equal to the amount of the delinquent taxes."||[categories: '6672', 'payroll taxes']|[related cases: ]|[date added: 2023-09-02] supreme 1978 Slodov v. U.S., 436 U.S. 238 (1978) Taxes that employers withhold from their employees' wages are known as "trust fund taxes" because they are held by the employer essentially in trust for the United States under section 7501(a).||[categories: '6672', 'payroll taxes']|[related cases: ]|[date added: 2023-09-02] supreme 1978 Smith [Commr. v.], 324 U.S. 177 (1945) [The predecessor to section 61] "is broad enough to include in taxable income any economic or financial benefit conferred on the employee as compensation, whatever the form or mode by which it is effected."||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] supreme 1945 Smith v. Shaughnessy, 318 U.S. 176 (1943) "The essence of a gift by trust is the abandonment of control over the property put in trust."||[categories: '2501', 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] supreme 1943 Smith v. U.S., 508 U.S. 223 (1993) "[W]hen a word is not defined by statute, [a court] normally construe[s] it in accord with its ordinary or natural meaning."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1993 Snow v. Commr., 416 U.S. 500 (1974) As a general rule, a taxpayer may deduct research or experimental expenditures paid or incurred during the taxable year in connection with its trade or business. Section 174(a). [However, TCJA now requires companies to amortize R&D costs over 5 years (or 15 years for foreign R&D expenses).]||[categories: '174', 'R&D expense', 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1974 Snyder v. Commr., 295 U.S. 134 (1935) A taxpayer may engage in more than one trade or business at the same time.||[categories: '162', 'trade or business']|[related cases: ]|[date added: 2023-09-02] supreme 1935 Soliman [Commr. v.], 506 U.S. 168 (1993) The Supreme Court laid out a two-part test to determine whether a "home office" constitutes a taxpayer's principal place of business: (1) the relative importance of the activities performed at each business location, and (2) the amount of time spent at each place. [However, Congress adjudged the Soliman standard too rigid and enacted flush language following section 280A(c)(1)(C) designed to liberalize it. This flush language provides that: the "term 'principal place of business' includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business."]||[categories: 'home office', 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1993 Sorenson v. Sec'y of Treas., 475 U.S. 851 (1986) "[I]dentical words used in different parts of the same act are intended to have the same meaning".||[categories: 'statutory construction']|[related cases: Stockholms Enskilda Bank [Helvering v.]]|[date added: 2023-09-02] supreme 1986 Sotelo [U.S. v.], 436 U.S. 268 (1978) The IRS has policy against double collection of trust fund taxes. [i.e., where there are multiple responsible persons]||[categories: '6672', 'payroll taxes']|[related cases: ]|[date added: 2023-09-02] supreme 1978 Southwest Consolidated [Helvering v.], 315 U.S. 194 (1942) A section 368(a)(1)(E) recapitalization has been defined as a "reshuffling of a capital structure within the framework of an existing corporation."||[categories: '368', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1942 Spies v. U.S., 317 U.S. 492 (1943) Fraud may be proved by circumstantial evidence (or "badges of fraud") and reasonably inferred from the facts, because direct proof of the taxpayer's intent is rarely available. "Badges of fraud" may include understatement of income, inadequate records, implausible or inconsistent explanations of behavior, concealing assets, or failure to cooperate with tax authorities. The intent to conceal or mislead may be inferred from a pattern of conduct.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] supreme 1943 Spreckels v. Helvering, 315 U.S. 626 (1942) Selling expenses may not be deducted by a trader in securities but are to be treated as offsets against selling price.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1942 Spring City Foundry v. Commr., 292 U.S. 182 (1934) Under the all-events test, it is the fixed right to receive the income, rather than its actual receipt, that controls when the item is includable in the gross income of an accrual method taxpayer. When the right to receive a set amount of income becomes fixed, the income ordinarily accrues.||[categories: '451', 'all-events test', 'timing']|[related cases: ]|[date added: 2023-09-02] supreme 1934 Stewart [U.S. v.], 311 U.S. 60 (1940) "[T]hose who seek an exemption from a tax must rest it on more than a doubt or ambiguity. Exemptions from taxation cannot rest upon mere implications."||[categories: 'exemptions']|[related cases: Wells Fargo v. Commr.]|[date added: 2023-09-02] supreme 1940 Stidger [Commr. v.], 386 U.S. 287 (1967) For purposes of section 162(a), a taxpayer's "home" is the vicinity of his principal place of business, and for a military taxpayer, this means the location of his permanent duty station.||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] supreme 1967 Stockholms Enskilda Bank [Helvering v.], 293 U.S. 84 (1934) Identical words used in different parts of the same statute are to be given a similar meaning in the absence of a contrary legislative intent.||[categories: 'statutory construction']|[related cases: Sorenson v. Sec'y of Treas.]|[date added: 2023-09-02] supreme 1934 Stuart [Helvering v.], 317 U.S. 154 (1942) State law controls whether the nature of the claim is a tort or tort type right; Federal law controls the federal tax consequences pertaining to such interests and rights.||[categories: 'other']|[related cases: Harmel [Burnet v.], Morgan v. Commr., Morgan v. Commr., Mitchell v. Commr., Vissering v. Commr.]|[date added: 2023-09-02] supreme 1942 Stuart [U.S. v.], 489 U.S. 353 (1989) "Using legislative history of Senate ratification to establish a treaty's meaning".||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1989 Sullivan [Commr. v.], 356 U.S. 27 (1958) An illegal gambling enterprise was a business for federal tax purposes and deductions for ordinary and necessary business expenses involved in operating the enterprise were allowable.||[categories: '162', 'business expenses', 'public policy']|[related cases: ]|[date added: 2023-09-02] supreme 1958 Sullivan [U.S. v.], 274 U.S. 259 (1927) The Fifth Amendment will never justify a complete failure to file a return.||[categories: 'constitution', 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] supreme 1927 Sunnen [Commr. v.], 333 U.S. 591 (1948) Res judicata bars relitigation of a cause of action by "the parties to the suit and their privies" after "a court of competent jurisdiction has entered a final judgment on the merits".||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1948 Sunnen [Commr. v.], 333 U.S. 591 (1948) A judgment relating to liability for a particular tax year is res judicata as to the same claim and the same tax year.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1948 Sw. Expl. Co. [Commr. v.], 350 U.S. 308 (1956) "[A]n allowance for depletion * * * is based on the theory that the extraction of minerals gradually exhausts the capital investment in the mineral deposit."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1956 Taylor [Helvering v.], 293 U.S. 507 (1935) The burden of going forward with evidence to establish the amount of a deficiency may shift to the Commissioner where determination is arbitrary and excessive.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 1935 Taylor v. Sturgell, 553 U.S. 880 (2008) "[C]laim preclusion, like issue preclusion, is an affirmative defense."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] supreme 2008 Tellier [Commr. v.], 383 U.S. 687 (1966) Corporation could deduct legal fees of another when the related litigation threatened the corporation's existence.||[categories: '162', 'business expenses', 'corporations']|[related cases: ]|[date added: 2023-09-02] supreme 1966 Tellier [Commr. v.], 383 U.S. 687 (1966) The term "necessary" imposes "only the minimal requirement that the expense be 'appropriate and helpful' for 'the development of the [taxpayer's] business'" .||[categories: '162', 'business expenses', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1966 Thor Power Tool Co. v. Commr., 439 U.S. 522 (1979) Section 446 imposes a heavy burden on the taxpayer disputing the Commissioner's determination on accounting matters. To prevail, a taxpayer must establish that respondent's determination is "clearly unlawful" or "plainly arbitrary".||[categories: '446', 'accounting methods', 'tax101']|[related cases: Hughes Properties [U.S. v.]]|[date added: 2023-09-02] supreme 1979 Thor Power Tool Co. v. Commr., 439 U.S. 522 (1979) "[T]he characterization of a transaction for financial accounting purposes, on the one hand, and for tax purposes, on the other, need not necessarily be the same"||[categories: '446', 'accounting methods', 'tax101']|[related cases: ]|[date added: 2023-09-02] supreme 1979 Tufts [Commr. v.], 461 U.S. 300 (1983) Nonrecourse mortgage tantamount to a true loan; its forgiveness triggers cancellation of indebtedness income, notwithstanding a lesser fair market value of the collateral than the balance of the debt.||[categories: '61', 'gross income', 'tax101']|[related cases: Franklin [Estate of] v. Commr.]|[date added: 2023-09-02] supreme 1983 Turnbow v. Commr., 368 U.S. 337 (1961) A transaction must constitute a reorganization, however, before taxpayers can resort to the nonrecognition rules of section 354.||[categories: '354', '368', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1961 Turnbow v. Commr., 368 U.S. 337 (1961) An exchange of stock for stock and cash did not qualify as a section 368(a)(1)(B) reorganization.||[categories: '368', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1961 Upjohn v. U.S., 449 U.S. 383 (1981) The attorney-client privilege is intended to encourage people who find themselves involved in actual or potential legal disputes to be candid with any lawyer they retain to advise them.||[categories: 'other', 'privilege']|[related cases: ]|[date added: 2023-09-02] supreme 1981 Upjohn v. U.S., 449 U.S. 383 (1981) The attorney-client privilege applies to communications made in confidence (1) by a client to an attorney for the purpose of obtaining legal advice and (2) by an attorney to a client, where the communication contains legal advice or reveals confidential information regarding the client's request for advice.||[categories: 'other', 'privilege']|[related cases: ]|[date added: 2023-09-02] supreme 1981 Vogel Fertilizer [U.S. v.], 455 U.S. 16 (1982) A court should generally defer to an agency's determination if the regulation implements the Congressional mandate in some reasonable manner.||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1982 Vogel Fertilizer [U.S. v.], 455 U.S. 16 (1982) An interpretative regulation is owed "'less deference than a regulation issued under a specific grant of authority to define a statutory term or prescribe a method of executing a statutory provision.'"||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] supreme 1982 Watts [Helvering v.], 296 U.S. 387 (1935) A transfer of assets from one corporation to another constituted a reorganization (i.e., met the continuity of interest requirement) where there was a transfer of assets for stock and bonds.||[categories: '368', 'continuity of interest', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1935 Weiss v. Stearn, 265 U.S. 242 (1924) In reincorporation in which both corporations were organized under the laws of the same state, participating shareholders realized gain only to the extent of the cash they received.||[categories: '368', 'corporations', 'reorganizations']|[related cases: ]|[date added: 2023-09-02] supreme 1924 Weiss v. Wiener, 279 U.S. 333 (1929) A prer​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​equisite for claiming a depreciation deduction is that "the taxpayer own[] the property".||[categories: '167', 'depreciation']|[related cases: ]|[date added: 2023-09-02] supreme 1929 Welch v. Helvering, 290 U.S. 111 (1933) "The Commissioner's determinations are presumed to be correct, and the taxpayer bears the burden of proving them wrong"||[categories: 'tax101']|[related cases: INDOPCO v. Commr., Interstate Transit Lines v. Commr., New Colonial Ice Co., Inc. v. Commr., Higbee v. Commr.]|[date added: 2023-09-02] supreme 1933 Welch v. Helvering, 290 U.S. 111 (1933) Taxpayers may not deduct expenses of another entity.||[categories: 'tax101']|[related cases: DuPont [Deputy v.], Lohrke v. Commr., Pantages Theatre Co. v. Welch]|[date added: 2023-09-02] supreme 1933 Wells [Burnet v.], 289 U.S. 670 (1933) A policy of life insurance is a contract susceptible of ownership like any other chose in action.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1933 Wells Fargo v. Commr., 485 U.S. 351 (1988) "Exemptions from taxation are not to be implied; they must be unambiguously proved."||[categories: 'exemptions']|[related cases: Stewart [U.S. v.]]|[date added: 2023-09-02] supreme 1988 Wemyss [Commr. v.], 324 U.S. 303 (1945) "[W]here 'property is transferred for less than an adequate and full consideration in money or money's worth,' the excess in such money value 'shall, for purposes of the tax imposed by this title, be deemed a gift.'" Common law considerations were not embodied in the gift tax.||[categories: '2501', 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] supreme 1945 Wheeler [Commr. v.], 324 U.S. 542 (1945) Although regulation 1.312-6(a) provides that a corporation must compute earnings and profits using the same method of accounting employed in computing taxable income, earnings and profits are not equivalent to taxable income.||[categories: '312', 'E&P', 'corporations']|[related cases: ]|[date added: 2023-09-02] supreme 1945 Whipple v. Commr., 373 U.S. 193 (1963) The income tax law distinguishes between a trade or business and transactions entered into for profit but not connected with a trade or business.||[categories: '62(a)(4)', '162', '212', 'trade or business']|[related cases: ]|[date added: 2023-09-02] supreme 1963 Whipple v. Commr., 373 U.S. 193 (1963) Devoting one's time and energies to the affairs of a corporation is not of itself, and without more, a trade or business of the person so engaged.||[categories: '162', 'trade or business']|[related cases: ]|[date added: 2023-09-02] supreme 1963 White v. Aronson, 302 U.S. 16 (1937) Tax laws, like all other laws, are made to be obeyed. They should therefore be intelligible to those who are expected to obey them.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1937 Whitney v. Robertson, 124 U.S. 190 (1888) Where a treaty and legislation relate to the same subject, "the courts will always endeavor to construe them so as to give effect to both, if that can be done without violating the language of either".||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] supreme 1888 Williams [U.S. v.], 514 U.S. 527 (1995) If the transfer qualifies as a fraudulent conveyance under state law, the code treats the transferee as the taxpayer.||[categories: '6901', 'other', 'transferee liability']|[related cases: ]|[date added: 2023-09-02] supreme 1995 Winmill [Helvering v.], 305 U.S. 79 (1938) Commissions paid on the purchase of securities were not deductible as ordinary and necessary business expenses.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] supreme 1938 Wisconsin Gas and Electric Co. v. U.S., 322 U.S. 526 (1944) A tax levied upon and deducted from declared dividends was thereby “reimbursed” by the shareholders to the corporation which paid it. But that case involved the question whether the deduction is available to the corporation.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] supreme 1944 Wodehouse [Commr. v.], 337 U.S. 369 (1949) The Code defines FDAP income broadly, and includes in it virtually all kinds of income except gains from the sale of property.||[categories: '871', '881', 'international']|[related cases: ]|[date added: 2023-09-02] supreme 1949 Woodward v. Commr., 397 U.S. 572 (1970) Amounts paid to defend or perfect title to property are nondeductible capital expenditures.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] supreme 1970 Aizawa v. Commr., 99 T.C. 197 (1992) Amount realized in a recourse-mortgage foreclosure doesn't include the recourse-mortgage balance because taxpayer not relieved of the responsibility to repay the loan.||[categories: '1001', 'amount realized', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] tc_reported 1992 Al Goodman, Inc. v. Commr., 23 T.C. 288 (1954) Respecting advance to sole shareholder as bona fide debt where shareholder pledged stock as security for loan and received a dividend to repay part of loan balance.||[categories: 'loan/debt', 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1954 Allen v. Commr., 72 T.C. 28 (1979) Finding ski lodge to be a trade or business where lodge had appreciated in value and taxpayers reasonably expected the value of their assets to continue increasing.||[categories: '162', 'trade or business']|[related cases: ]|[date added: 2023-09-02] tc_reported 1979 Amaral v. Commr., 90 T.C. 802 (1988) Distinguishing, for purposes of the London Agreement and a related international treaty, between a U.S. employee who is "seconded" to NATO and a "direct hire" of NATO who is "appointed to the international staff of NATO pursuant to an employment contract".||[categories: '911', 'foreign earned income exclusion', 'international']|[related cases: ]|[date added: 2023-09-02] tc_reported 1988 Ambrosio [Estate of] v. Commr., 105 T.C. 252 (1995) "[T]he bona fide sale exception applies when an interest in property is transferred for sufficient consideration to prevent the depletion of the transferor's gross estate for federal estate tax purposes."||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 1995 Amodio v. Commr., 34 T.C. 894 (1960) Active management of rental property on a “regular and continuous” basis is a U.S. trade or business.||[categories: '162', '864(b)', 'international', 'trade or business']|[related cases: ]|[date added: 2023-09-02] tc_reported 1960 Ancira v. Commr., 119 T.C. 135 (2002) No taxable distribution occurred when the IRA owner personally received a check that he could not negotiate, the funds were then used to acquire stock, and the stock certificate was issued in the IRA’s name.||[categories: '61', '408', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 2002 Andre v. Commr., 127 T.C. 68 (2006) IRS was not bound by apparent typographical error in notice of determination.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 2006 Anthes v. Commr., 81 T.C. 1 (1983) "[W]e must apply the law as in effect during the taxable year in issue."||[categories: 'annual accounting']|[related cases: ]|[date added: 2023-09-02] tc_reported 1983 Anthony v. Commr., 66 T.C. 367 (1976) "[W]ithout a 'case' or 'controversy' before us, we would be exercising nonjudicial powers, and our opinions would not be reviewable[.]"||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 Baker v. Commr., 118 T.C. 452 (2002) The taxpayer did not sell a trade or business to which goodwill could attach.||[categories: '162', '1221', 'capital vs. ordinary', 'trade or business']|[related cases: ]|[date added: 2023-09-02] tc_reported 2002 Bank of the West v. Commr., 93 T.C. 462 (1989) Because the estate tax return was not timely filed, the election was "ineffectual as a matter of law".||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 1989 Bass v. Commr., 50 T.C. 595 (1968) "A taxpayer may adopt any form he desires for the conduct of his business, and * * * the chosen form cannot be ignored merely because it results in a tax saving."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1968 Battat v. Commr., 148 T.C. 32 (2017) [The Tax Court], like all federal courts, may adjudicate constitutional questions that arise within its jurisdiction and collecting authorities.||[categories: 'constitution', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2017 Beard v. Commr., 82 T.C. 766 (1984) An essential element of a valid return is that "the taxpayer must execute the return under penalties of perjury".||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1984 Beaver v. Commr., 55 T.C. 85 (1970) An essential element of a loan is that the recipient intends to make repayment and the person advancing the funds intends to enforce such repayment.||[categories: '61', 'gross income', 'loan/debt']|[related cases: ]|[date added: 2023-09-02] tc_reported 1970 Bedell Trust v. Commr., 86 T.C. 1207 (1986) A "trust characterized by a dominant familial objective" was taxable as a trust and not an association because it lacked a business purpose.||[categories: 'corporations', 'entity classification', 'trusts']|[related cases: ]|[date added: 2023-09-02] tc_reported 1986 Belcher v. Commr., 83 T.C. 227 (1984) Checks mailed to charitable donees prior to the donor's death but not paid until after death related back to the date of delivery, thus reducing the donor's gross estate.||[categories: '170', 'charitable contributions', 'timing']|[related cases: ]|[date added: 2023-09-02] tc_reported 1984 Bergquist v. Commr., 131 T.C. 8 (2008) Concluding that on the valuation date a corporation was no longer a going concern as "a reasonably informed and willing buyer or seller" would have been aware of imminent changes likely to cause operations to cease.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 2008 Bixby v. Commr., 58 T.C. 757 (1972) A taxpayer's basis in a cattle herd was limited to its fair market value at the time of purchase where excess purchase price was allocable to maintenance contracts.||[categories: 'basis', 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1972 Board of Trade v. Commr., 106 T.C. 369 (1996) A payor’s motive controls whether a payment is a contribution to capital.||[categories: '118', 'contributions to capital']|[related cases: ]|[date added: 2023-09-02] tc_reported 1996 Boltar, LLC v. Commr., 136 T.C. 326 (2011) Declining to permit a late-filed supplement to an incomplete expert report because it "would prejudice respondent in preparing rebuttal and would undermine the purpose of pretrial exchange of expert reports".||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2011 Bones v. Commr., 4 T.C. 415 (1944) Taxpayer's refusal to cash a check did not result in constructive receipt of the income where cashing the check would impair the taxpayer's legal position by creating a situation that might be construed as an accord and satisfaction concerning a disputed claim.||[categories: 'timing']|[related cases: ]|[date added: 2023-09-02] tc_reported 1944 Bongard [Estate of] v. Commr., 124 T.C. 95 (2005) "[T]he bona fide sale for adequate and full consideration exception" applies to a transfer to a family limited partnership only when "the record establishes the existence of a legitimate and significant nontax reason for creating the family limited partnership".||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 2005 Bongard [Estate of] v. Commr., 124 T.C. 95 (2005) "[A] transaction between family members is * * * subjected to heightened scrutiny to ensure that it is not a sham or disguised gift."||[categories: 'other', 'related parties']|[related cases: Culbertson [Commr. v.], Clark v. Commr., Van Anda [Estate of] v. Commr.]|[date added: 2023-09-02] tc_reported 2005 Boulez v. Commr., 83 T.C. 584 (1984) Intellectual property creator receives only personal services income if the creator lacks an ownership interest in the underlying property.||[categories: '861', 'international', 'sourcing']|[related cases: ]|[date added: 2023-09-02] tc_reported 1984 Braddock v. Commr., 95 T.C. 639 (1990) Holding penalties inapplicable where the issue has never before been considered by any court, and the answer is not entirely clear from the statutory language.||[categories: 'other', 'penalties', 'reasonable cause']|[related cases: Hitchins v. Commr., Patel v. Commr., Williams v. Commr.]|[date added: 2023-09-02] tc_reported 1990 Broz v. Commr., 137 T.C. 46 (2011) "[W]e need not accept the taxpayer's self-serving testimony when the taxpayer fails to present corroborative evidence."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2011 Broz v. Commr., 137 T.C. 25 (2011) "[A]n asset is placed in service when it is acquired and put into use" by the taxpayer.||[categories: '167', '263', 'capital expenditures', 'depreciation']|[related cases: ]|[date added: 2023-09-02] tc_reported 2011 Bunney v. Commr., 114 T.C. 259 (2000) PLRs may be authorities showing reasonableness of return position.||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] tc_reported 2000 Byers v. Commr., 82 T.C. 919 (1984) Involving the rental of a condominium unit as part of a resort hotel and the personal use of the condominium by the taxpayer for thirty days of the year.||[categories: '280A', 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1984 Cabirac v. Commr., 120 T.C. 163 (2003) "[T]he majority of courts, including this court, have held that, generally, a return that contains only zeros is not a valid return."||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 2003 Calafati v. Commr., 127 T.C. 219 (2006) Noting that this court has never held that taxpayers are entitled to audio record anything other than a face-to-face meeting [for a CDP hearing].||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 2006 Calder v. Commr., 85 T.C. 713 (1985) Market​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​ absorption discount applied to gifts of a large number of works of art created by one artist.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1985 Calloway v. Commr., 135 T.C. 26 (2010) Factors for determining when a sale occurs include "how the parties treat the transaction" and "whether the contract creates a present obligation on the seller to execute and deliver a deed and a present obligation on the purchaser to make payments".||[categories: '1001', 'sale or exchange', 'timing']|[related cases: ]|[date added: 2023-09-02] tc_reported 2010 Calloway v. Commr., 135 T.C. 26 (2010) Reliance is only reasonable if adviser is independent--unburdened by a conflict of interest.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 2010 Caltex Oil Venture v. Commr., 138 T.C. 18 (2012) "[I]t is well settled that where a statute is ambiguous, * * * [the court] may look to legislative history to ascertain its meaning."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] tc_reported 2012 Campbell [Estate of] v. Commr., 56 T.C. 1 (1971) Husband signed a joint return for both his wife and himself; wife never objected to this practice; court held the tax return was joint.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1971 Carpenter v. Commr., 152 T.C. 202 (2019) "[A] taxpayer is strictly prohibited from challenging the existence or amount of an underlying tax liability that is related to an order of criminal restitution."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2019 Casey v. Commr., 38 T.C. 357 (1962) "[A]n expert's opinion is entitled to substantial weight only if it is supported by the facts."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1962 Cave Buttes, LLC v. Commr., 147 T.C. 338 (2016) "[Fair market value] is a question of fact to be determined from all relevant evidence on the record".||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 2016 Charlton v. Commr., 114 T.C. 333 (2000) The mere purchase of property did not constitute an active trade or business since the property was not rented or held out for rent until a subsequent year.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 2000 Chiu v. Commr., 84 T.C. 722 (1985) Rejecting an expert's testimony as incredible when the expert's opinion of value was so exaggerated as to make it unrealistic.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1985 Church of Scientology v. Commr., 83 T.C. 381 (1984) "A concession in open court * * * [is] the equivalent of a stipulation."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1984 Clark v. Commr., 18 T.C. 780 (1952) "Intra-family transactions are subject to rigid scrutiny[.]"||[categories: 'other', 'related parties']|[related cases: Culbertson [Commr. v.], Bongard [Estate of] v. Commr., Van Anda [Estate of] v. Commr.]|[date added: 2023-09-02] tc_reported 1952 Clayton v. Commr., 102 T.C. 632 (1994) Finding fraud where there was a "steady flow" of unreported payments into the taxpayer's personal bank account.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] tc_reported 1994 Clayton v. Commr., 102 T.C. 632 (1994) The "Commissioner is not required to show a likely source of income" when using the bank deposits method for computing unreported income.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] tc_reported 1994 Clodfelter v. Commr., 57 T.C. 102 (1971) Holding valid a notice mailed to the incorrect address when the taxpayer receives notice through other means.||[categories: 'notices', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1971 Cluck v. Commr., 105 T.C. 324 (1995) Summary schedules insufficient to entitle taxpayer to claimed deductions.||[categories: 'evidence', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1995 CNT Investors, LLC v. Commr., 144 T.C. 161 (2015) "[W]e have described the step transaction doctrine, for example, as simply an extension or application of the 'substance over form' doctrine."||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 2015 Cohen v. Commr., 15 T.C. 261 (1950) The absence of an express agreement to share in losses is not material, since such an agreement may be implied from their agreement to share profits.||[categories: 'partnerships']|[related cases: ]|[date added: 2023-09-02] tc_reported 1950 Coleman v. Commr., 94 T.C. 82 (1990) The Commissioner bears the burden of proving by competent and persuasive evidence that a notice of deficiency was properly mailed.||[categories: 'deficiency', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1990 Cooley v. Commr., 33 T.C. 223 (1959) "Property otherwise intrinsically more valuable which is encumbered by some restriction or condition limiting its marketability must be valued in the light of such limitation."||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1959 Cooney v. Commr., 65 T.C. 101 (1975) The Commissioner may take inconsistent positions with different parties to protect the revenue.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1975 Corbalis v. Commr., 142 T.C. 46 (2014) "[A] procedural pronouncement cannot restrict or revise * * * [a code section]. * * * The wording and context of the statute * * * control."||[categories: 'authorities', 'statutory construction']|[related cases: Adler v. Commr.]|[date added: 2023-09-02] tc_reported 2014 Craig v. Commr., 119 T.C. 252 (2002) Decision letter issued after timely CDP request constituted a notice of determination.||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 2002 Crow v. Commr., 85 T.C. 376 (1985) "A revenue ruling represents the view of the Commissioner, not the Treasury Department, and thus is generally only 'the contention of one of the parties to the litigation.'"||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] tc_reported 1985 Crow v. Commr., 85 T.C. 376 (1985) The United States taxes its citizens, and ergo its residents, on their worldwide income.||[categories: '1', 'international']|[related cases: Cook v. Tait, Filler v. Commr.]|[date added: 2023-09-02] tc_reported 1985 Cullen v. Commr., 14 T.C. 368 (1950) Personal ability, personality, and reputation of sole active shareholder not a corporate intangible asset where there is no contractual obligation to continue shareholder's services.||[categories: 'corporations', 'goodwill']|[related cases: ]|[date added: 2023-09-02] tc_reported 1950 Dagres v. Commr., 136 T.C. 263 (2011) A loss is a nonbusiness bad debt where a taxpayer's dominant motive is to protect his investment in a corporation, even if the taxpayer is an employee.||[categories: '166', 'bad debt expense']|[related cases: ]|[date added: 2023-09-02] tc_reported 2011 Daly v. Commr., 72 T.C. 190 (1979) Denying deduction for overnight lodging expenses in Philadelphia where sales manager commuted weekly to Philadelphia from his home in Virginia.||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1979 Dawson v. Commr., 59 T.C. 264 (1972) Confirming that a taxpayer can be a bona fide resident of one country yet retain his domicile in another.||[categories: '911', 'estate and gift taxes', 'foreign earned income exclusion', 'international']|[related cases: ]|[date added: 2023-09-02] tc_reported 1972 Dean v. Commr., 54 T.C. 663 (1970) "Where a taxpayer does not have a nontemporary principal place of business away from the vicinity of his residence, then his place of residence remains his home for tax purposes."||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1970 Delman [Estate of] v. Commr., 73 T.C. 15 (1979) Nonrecourse debt satisfied upon repossession generated gain, and not [cancellation of indebtedness] income.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 1979 Delta Plastics v. Commr., 54 T.C. 1287 (1970) Disregarding promissory note that did not reflect an "intent by both parties, substantially contemporaneous to the time of such transfer, to establish an enforceable obligation of repayment".||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1970 Diaz v. Commr., 58 T.C. 560 (1972) The process of distilling truth from the testimony of witnesses, whose demeanor we observe and whose credibility we evaluate, is the daily grist of judicial life.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1972 Dileo v. Commr., 96 T.C. 858 (1991) A corporation may be liable for fraud if its officer has the fraudulent intent to evade its taxes.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] tc_reported 1991 Dileo v. Commr., 96 T.C. 858 (1991) The Commissioner used the bank deposits method to reconstruct income, noting that he was not obliged to "follow any 'leads' suggesting that * * * [the taxpayers] might have some deductible expenses".||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] tc_reported 1991 Dileo v. Commr., 96 T.C. 858 (1991) Finding shareholders liable for tax when they deposited a portion of their corporation's gross receipts into secret bank accounts.||[categories: '301', 'corporations', 'dividends', 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1991 Disabled Am. Veterans v. Commr., 94 T.C. 60 (1990) The regulations define royalties, other than mineral, oil, or gas royalties, for personal holding company purposes, as "amounts received for the privilege of using patents, copyrights, secret processes and formulas, good will, trade marks, trade brands, franchises, and other like property."||[categories: '543', '1402', 'corporations', 'self-employment tax']|[related cases: ]|[date added: 2023-09-02] tc_reported 1990 Dixie Dairies Corp. v. Commr., 74 T.C. 476 (1980) Due to differing factual circumstances under which debt-equity questions arise, where not all the criteria are pertinent, an analysis of a lesser number will suffice.||[categories: '385', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] tc_reported 1980 Dixon v. Commr., 28 T.C. 338 (1957) The submission of an unsigned tax return to the internal revenue service is not the making of an income tax return.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1957 Dolan v. Commr., 44 T.C. 420 (1965) The IRS has the option of proceeding against either spouse who signed a joint return, but can collect the liability only once.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1965 Donigan v. Commr., 68 T.C. 632 (1977) The taxpayer, who was married at the relevant time, was not eligible for the filing status of single.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1977 Dougherty v. Commr., 60 T.C. 917 (1973) "[I]n subpart F, Congress has singled out a particular class of taxpayers, U.S. shareholders, whose degree of control over their foreign corporation allows them to treat the corporation's undistributed earnings as they see fit."||[categories: '951', 'corporations', 'international']|[related cases: ]|[date added: 2023-09-02] tc_reported 1973 Drake v. Commr., 125 T.C. 201 (2005) Holding a prohibited ex parte communication occurred.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2005 Duttenhofer [Estate of] v. Commr., 49 T.C. 200 (1967) Pending litigation, even where the outcome would affect the determination of an estate tax, is not reasonable cause for failing to file an estate tax return timely.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 1967 Dutton v. Commr., 122 T.C. 133 (2004) "[O]ur practice is not to consider new issues raised for the first time in an answering brief."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2004 Elliott v. Commr., 113 T.C. 125 (1999) "[F]ailure to satisfy the requirements for filing a return is fatal to the validity and the timeliness of the return."||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1999 Elrod v. Commr., 87 T.C. 1046 (1986) We consider extrinsic evidence to interpret contract terms or to explain the purpose and intention of contracting parties when the contract is ambiguous.||[categories: 'evidence', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1986 Enoch v. Commr., 57 T.C. 781 (1972) "[T]he ultimate responsibility for a correct return lies with the taxpayer, who must at least furnish the necessary information to his agent who prepared the return."||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1972 Epstein v. Commr., 53 T.C. 459 (1969) When a corporation makes a transfer of property for no or insufficient consideration "to a member of the stockholder’s family, whether it be directly or in trust, the stockholder has enjoyed the use of such property no less than if it had been distributed to him directly."||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] tc_reported 1969 Espinoza v. Commr., 78 T.C. 412 (1982) "[H]is failure to pay the additional taxes raises a question as to whether he intended for the amended returns to be filed."||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1982 Everhart v. Commr., 61 T.C. 328 (1973) Moveab​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​ility per se does not determine whether or not property is personal property.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1973 Ewing v. Commr., 91 T.C. 396 (1988) "[W]e are cognizant of the fact that tax planning is an economic reality in the business world and the effect of tax laws on a transaction is routinely considered".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1988 Fausner v. Commr., 55 T.C. 620 (1971) Taxpayer's payment of children's secondary school tuition is a personal, not a charitable, expenditure.||[categories: '262', 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1971 Fazi v. Commr., 105 T.C. 436 (1995) This court may raise the doctrine of judicial estoppel sua sponte.||[categories: 'estoppel', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1995 Fehrs v. Commr., 65 T.C. 346 (1975) "It is well settled that unless the petition is filed by the taxpayer, or by someone lawfully authorized to act on his behalf, we are without jurisdiction."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1975 Feller v. Commr., 135 T.C. 497 (2010) "[I]n a case involving a deficiency and fraud in which no excess withholding credits are claimed, * * * the terms 'deficiency' and 'underpayment' can be used interchangeably."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 2010 Ferguson v. Commr., 108 T.C. 244 (1997) Finding assignment of income with respect to proceeds of merger that occurred contemporaneously with charitable contribution.||[categories: '61', '170', 'assignment of income', 'charitable contributions', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 1997 Filler v. Commr., 74 T.C. 406 (1980) "[A]lthough many foreign countries tax their residents on their worldwide income, the United States taxes its citizens, as well as its residents, on their worldwide income."||[categories: '1', 'international']|[related cases: Cook v. Tait, Crow v. Commr.]|[date added: 2023-09-02] tc_reported 1980 Fleischman v. Commr., 45 T.C. 439 (1966) Extending the rationale of Gilmore and Patrick to disallow expenses incurred in defending an action to set aside an antenuptial agreement and stating that "[i]f the claim could not have existed but for the marriage relationship," the cost of defending it is a nondeductible personal expense.||[categories: 'origin of the claim doctrine', 'other']|[related cases: Gilmore [U.S. v.]]|[date added: 2023-09-02] tc_reported 1966 Fountain v. Commr., 59 T.C. 696 (1973) Checks were not treated as distributions of money when the accounts had insufficient funds and the payees treated the checks as notes payable.||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] tc_reported 1973 Fox v. Commr., 50 T.C. 813 (1968) "[M]ere belief that a debt is bad is insufficient to support a deduction for worthlessness".||[categories: '166', 'bad debt expense']|[related cases: ]|[date added: 2023-09-02] tc_reported 1968 Freeland v. Commr., 74 T.C. 970 (1980) "[I]t has been well established that where a taxpayer transfers property to his mortgagee in settlement of a mortgage obligation for which he is personally liable, any loss sustained by him will be deemed to have resulted from a sale or exchange on the ground that the taxpayer received consideration in return for transferring the property, the consideration being his release from liability."||[categories: '1001', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] tc_reported 1980 Freeman v. Commr., 33 T.C. 323 (1959) Proceeds received "as the replacement of capital destroyed or injured rather than for lost profits" are a return of capital and not taxable.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 1959 Freytag v. Commr., 89 T.C. 849 (1987) Reliance on tax advice given by attorneys and C.P.A.'s held unreasonable absent a showing that the taxpayers consulted any experts regarding the bona fides of the transactions.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Friedman v. Commr., 40 T.C. 714 (1963) "If the transfer under scrutiny is considered as made for an adequate and full consideration for gift tax purposes, it likewise is to be considered for estate tax purposes."||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 1963 Frisch v. Commr., 87 T.C. 838 (1986) Lawyer representing himself pro se was not entitled to fees for his own services because such fees were not paid or incurred.||[categories: 'tax101']|[related cases: ]|[date added: 2023-09-02] tc_reported 1986 Frothingham [Estate of] v. Commr., 60 T.C. 211 (1973) For estate tax purposes, "adequate and full consideration in money or money's worth" generally means consideration of "equivalent amount" to the property transferred for it.||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 1973 Frothingham [Estate of] v. Commr., 60 T.C. 211 (1973) "[U]nless replaced by property of equal value that could be exposed to inclusion in the decedent's gross estate, the property transferred in a testamentary transaction of the type described in the statute must be included in his gross estate".||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 1973 Gefen v. Commr., 87 T.C. 1471 (1986) Partner negotiating terms of partnership's transactions to partnership's best advantage was a factor in deciding that partnership was engaged in activity with the intention of making a profit.||[categories: 'other', 'partnerships', 'profit motive']|[related cases: ]|[date added: 2023-09-02] tc_reported 1986 Gilford [Estate of] v. Commr., 88 T.C. 38 (1987) Post-valuation-date documents were admissible as evidence in support of a higher valuation of a taxpayer's stock.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Gizzi v. Commr., 65 T.C. 342 (1975) Taxpayers whose records are lost on account of a casualty are required to reasonably reconstruct their missing records.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1975 Goff v. Commr., 135 T.C. 231 (2010) By failing to comply with the briefing schedule, asking for continuances, and bringing only frivolous claims, the taxpayer showed that his purpose for bringing the case was to delay the collection of tax liabilities.||[categories: 'frivolous', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2010 Golanty v. Commr., 72 T.C. 411 (1979) A series of substantial losses suggests the lack of a profit motive.||[categories: 'other', 'profit motive']|[related cases: ]|[date added: 2023-09-02] tc_reported 1979 Golden Rule Church Assoc'n v. Commr., 41 T.C. 719 (1964) "[A]lthough tax benefits * * * may be matters of legislative grace * * * nevertheless, a denial of such benefits granted to others of essentially the same class may well rise to the level of an unconstitutional discrimination".||[categories: 'constitution']|[related cases: ]|[date added: 2023-09-02] tc_reported 1964 Goldman v. Commr., 46 T.C. 136 (1966) Purchase price of a lottery ticket is consideration expended for chance to win, not a contribution to the sponsoring charity.||[categories: '170', 'charitable contributions']|[related cases: ]|[date added: 2023-09-02] tc_reported 1966 Goldring v. Commr., 20 T.C. 79 (1953) "The word 'return' * * * include[s] only the original return."||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1953 Goldstone v. Commr., 65 T.C. 113 (1975) Rejecting taxpayers' argument that they have the "right" to file an amended return.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1975 Golsen v. Commr., 54 T.C. 742 (1970) "Better judicial administration * * * requires us to follow a court of appeals decision which is squarely in point where appeal from our decision lies to that court of appeals and to that court alone."||[categories: 'tax101', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1970 Gordon v. Commr., 85 T.C. 309 (1985) "Formally separate steps in an integrated and interdependent series that is focused on a particular end result will not be afforded independent significance in situations in which an isolated examination of the steps will not lead to a determination reflecting the actual overall result of the series of steps."||[categories: 'substance over form']|[related cases: Gordon [Commr. v.], Superior Trading, LLC v. Commr., Associated Wholesale Grocers Inc. v. U.S., Associated Wholesale Grocers Inc. v. U.S.]|[date added: 2023-09-02] tc_reported 1985 Gould v. Commr., 139 T.C. 418 (2012) Prior year returns and self-serving testimony, absent corroborating evidence, do not substantiate a taxpayer's entitlement to loss carryovers.||[categories: 'evidence', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2012 Gould v. Commr., 64 T.C. 132 (1975) Allowing business expense deduction where "[t]he evidence [wa]s clear that * * * [the taxpayer's] motive was to preserve his employment".||[categories: '212', 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1975 Graf v. Commr., 80 T.C. 944 (1983) A taxpayer cannot include a contingent liability in his cost basis.||[categories: 'basis']|[related cases: ]|[date added: 2023-09-02] tc_reported 1983 Grajales v. Commr., 156 T.C. 55 (2021) Analyzing whether an exaction is a tax or penalty by reference to the label Congress chose to apply to it.||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] tc_reported 2021 Gray v. Commr., 138 T.C. 295 (2012) "[A]ll claims in a petition should be broadly construed so as to do substantial justice, and a petition filed by a pro se litigant should be liberally construed."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2012 Green v. Commr., 74 T.C. 1229 (1980) "[I]nsuring against the costs of maintaining petitioner's health is primarily a personal concern, not merely a business concern."||[categories: '262', 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1980 Green v. Commr., 35 T.C. 764 (1961) Holding taxpayers not entitled to a deduction for travel expenses from home in Greenville, Ohio, to Dayton, Ohio, from whence came all of husband's income.||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1961 Haag v. Commr., 88 T.C. 604 (1987) "To constitute true loans there must have been, at the time the funds were transferred, an unconditional obligation on the part of the transferee to repay the money, and an unconditional intention on the part of the transferor to secure repayment."||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Haass v. Commr., 55 T.C. 43 (1970) Holders of interests in oil and gas wells may deduct IDCs only after they have been granted operating rights to the wells to which those costs relate.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1970 Hall v. Commr., 92 T.C. 1027 (1989) Taxpayer not permitted to avoid application of the FIFO method by waiting "until the end of a year to allot specific sales to his general inventory of stocks in such a manner as to be most beneficial to him taxwise".||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] tc_reported 1989 Halle v. Commr., 7 T.C. 245 (1946) A taxpayer's return is not self-proving as to the truth of its contents.||[categories: 'returns and amended returns', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1946 Halpern v. Commr., 96 T.C. 895 (1991) Only "unequivocal evidence" of legislative purpose in the history to a statute may override the plain meaning of the words therein.||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] tc_reported 1991 Hambrose Leasing v. Commr., 99 T.C. 298 (1992) "[I]t is only after the losses, deductions, and credits of a partnership have flowed through to [the] individual partners that the at-risk status of the partners can be determined."||[categories: 'partnerships']|[related cases: ]|[date added: 2023-09-02] tc_reported 1992 Harper v. Commr., 99 T.C. 533 (1992) "[A] notice of deficiency is not invalid because it bears a stamped signature."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 1992 Hebrank v. Commr., 81 T.C. 640 (1983) Taxpayer's compliance in earlier years indicates knowledge of the requirement to comply in later years.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 1983 Henningsen v. Commr., 26 T.C. 528 (1956) "[M]ere uninformed and unsupported belief by a taxpayer, no matter how sincere that belief may be, that he is not required to file a tax return, is insufficient to constitute reasonable cause for his failure so to file."||[categories: 'penalties', 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1956 Hewitt v. Commr., 109 T.C. 258 (1997) Describing substantial compliance as satisfied where the taxpayer has "provided most of the information required" or made omissions "solely through inadvertence".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1997 Higbee v. Commr., 116 T.C. 438 (2001) An honest and reasonable misunderstanding of fact or law weighs against imposing an accuracy-related penalty.||[categories: 'other', 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 2001 Higbee v. Commr., 116 T.C. 438 (2001) Document summarizing amounts allegedly owed and paid as business expenses insufficient to shift burden.||[categories: 'evidence', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2001 Higbee v. Commr., 116 T.C. 438 (2001) "[T]he taxpayer bears the burden of substantiating the amount and purpose of the claimed deduction."||[categories: 'evidence', 'trial procedure']|[related cases: INDOPCO v. Commr., Interstate Transit Lines v. Commr., New Colonial Ice Co., Inc. v. Commr., Welch v. Helvering]|[date added: 2023-09-02] tc_reported 2001 Higbee v. Commr., 116 T.C. 438 (2001) Taxpayers bear the burden of proof relating to reasonable cause.||[categories: 'evidence', 'penalties', 'reasonable cause', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2001 Hilborn v. Commr., 85 T.C. 677 (1985) "To th​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​e extent possible, the three commonly recognized methods of valuing property (capitalized net operating income, replacement cost and comparable sales.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1985 Hitchins v. Commr., 103 T.C. 711 (1994) "[I]ndeed, we have specifically refused to impose . . . [a penalty] where it appeared that the issue was one not previously considered by the court and the statutory language was not entirely clear."||[categories: 'other', 'penalties', 'reasonable cause']|[related cases: Braddock v. Commr., Patel v. Commr., Williams v. Commr.]|[date added: 2023-09-02] tc_reported 1994 Hoffman v. Commr., 47 T.C. 218 (1966) "[O]ur conclusion that beneficial ownership of the stock, as opposed to technical legal title thereto, is critical in determining who is a shareholder [of an S corporation], is supported by * * * the general legislative purpose underlying Subchapter S."||[categories: 'other', 'ownership']|[related cases: Ragghianti v. Commr.]|[date added: 2023-09-02] tc_reported 1966 Hook v. Commr., 58 T.C. 267 (1972) Attorney held record ownership of stock as an accommodation to his client.||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1972 Howlett v. Commr., 56 T.C. 951 (1971) "[I]ndebtedness is 'an existing, unconditional, and legally enforceable obligation for the payment of a principal sum.'"||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1971 Huddleston v. Commr., 100 T.C. 17 (1993) "[J]udicial estoppel is an equitable doctrine that prevents parties in subsequent judicial proceedings from asserting positions contradictory to those they previously have affirmatively persuaded a court to accept."||[categories: 'estoppel']|[related cases: ]|[date added: 2023-09-02] tc_reported 1993 Hudson v. Commr., 103 T.C. 90 (1994) An audiobook "must be completed and be available for use before it can be placed in service".||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] tc_reported 1994 Huffman v. Commr., 126 T.C. 322 (2006) Providing a detailed explanation of the LIFO method of accounting.||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] tc_reported 2006 Hulett v. Commr., 150 T.C. 60 (2018) "Beard has become the go-to case to answer * * * [whether information received constitutes a return.]"||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 2018 Hutcheson v. Commr., 17 T.C. 14 (1951) A deduction for the taxpayer's loss of time or the value of that lost time is disallowed because the taxpayer has not included any amount attributable to the lost time in gross income and therefore has no tax cost basis in the lost time that he can deduct.||[categories: 'basis', 'tax101']|[related cases: Hort v. Commr., Tonn v. Commr., Hendricks v. Commr.]|[date added: 2023-09-02] tc_reported 1951 Hynes v. Commr., 74 T.C. 1266 (1980) State law trust with a single beneficiary classified as an association because it possessed a preponderance of corporate characteristics, including associates and a joint profit motive.||[categories: 'corporations', 'entity classification', 'trusts']|[related cases: ]|[date added: 2023-09-02] tc_reported 1980 Ianniello v. Commr., 98 T.C. 165 (1992) State court adjudications retroactively changing the rights of parties are generally disregarded for federal income tax purposes.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1992 Imel v. Commr., 61 T.C. 318 (1973) The making of less than ten loans over the course of a four-year period didn't elevate that activity to the status of a separate business.||[categories: '162', '864(b)', 'international', 'trade or business']|[related cases: ]|[date added: 2023-09-02] tc_reported 1973 Jackson v. Commr., 59 T.C. 312 (1973) Suffering has never been made a prerequisite to deductibility.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1973 Jarre v. Commr., 64 T.C. 183 (1975) Market absorption discount applied to charitable contribution of large collection of original music manuscripts and other related material.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1975 Jasionowski v. Commr., 66 T.C. 312 (1976) "[I]f the anticipation of eventually selling the house at a profit were in itself sufficient to establish that the property was held with a profit-making intent, rare indeed would be the homeowner who purchased a home several years ago who could not make the same claim."||[categories: '212', 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 Jasionowski v. Commr., 66 T.C. 312 (1976) The court has discretion not to be bound by the stipulation of facts where clearly contrary evidence is presented at trial.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 Jasionowski v. Commr., 66 T.C. 312 (1976) Lease agreement with friend that provided for rent in the amount of the total cost of the property's insurance and taxes held to lack profit motive.||[categories: 'other', 'profit motive']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 Johnsen v. Commr., 83 T.C. 103 (1984) Looking for or securing a tenant before the taxpayer actually owns the property and could actually rent the property was not sufficient to indicate the start of a business.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1984 Jones [Estate of] v. Commr., 116 T.C. 121 (2001) A controlling partner who could compel the partnership to sell its assets and distribute the proceeds would not sell the partnership interest for less than a proportionate share of the value of assets.||[categories: 'fair market value', 'partnerships']|[related cases: ]|[date added: 2023-09-02] tc_reported 2001 Jones v. Commr., 64 T.C. 1066 (1975) A court reporter improperly assigned income to his personal service corporation because a court reporter was legally required to be an individual, and although the corporation was a valid entity, by law it could not perform such services.||[categories: '61', 'assignment of income', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 1975 Judge v. Commr., 88 T.C. 1175 (1987) No reasonable cause found despite illness where taxpayer had a long history of delinquent filing.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Kahn [Estate of] v. Commr., 125 T.C. 227 (2005) "[T]he willing buyer and the willing seller are hypothetical persons, rather than specific individuals. or entities, and the individual characteristics of these hypothetical persons are not necessarily the same as the individual characteristics of the actual seller or the actual buyer."||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 2005 Katz v. Commr., 115 T.C. 329 (2000) Reiterating that the term "underlying tax liability" comprises "the tax deficiency, any penalties and additions to tax, and statutory interest".||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 2000 Keene v. Commr., 121 T.C. 8 (2003) Remanding to appeals because it had failed to allow the taxpayer to record his CDP hearing.||[categories: 'other', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2003 Kellems v. Commr., 58 T.C. 556 (1972) Upholding different tax rates for married and single taxpayers.||[categories: 'constitution']|[related cases: ]|[date added: 2023-09-02] tc_reported 1972 Kellogg v. Commr., 88 T.C. 167 (1987) "[N]o particular form [for a notice of deficiency] is required".||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Kestin v. Commr., 153 T.C. 14 (2019) An IRS letter giving a "stern" and "contingent * * * warning" of a possible penalty did not constitute an initial determination.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 2019 Kilborn v. Commr., 29 T.C. 102 (1957) "[U]nder the statute, losses are deductible in the year sustained * * * whether a taxpayer is on a cash basis or an accrual method of accounting."||[categories: '165', '446', 'accounting methods', 'losses', 'timing']|[related cases: ]|[date added: 2023-09-02] tc_reported 1957 King v. Commr., 89 T.C. 445 (1987) An investor is never considered to be engaged in a trade or business with respect to his investment activities. Explaining difference between trader and investor for tax purposes.||[categories: '162', 'business expenses']|[related cases: Higgins v. Commr.]|[date added: 2023-09-02] tc_reported 1987 King's Court Mobil Home Park v. Commr., 98 T.C. 511 (1992) Corporation's unreported income diverted to shareholder.||[categories: '61', '301', 'corporations', 'dividends', 'gross income']|[related cases: Simon v. Commr.]|[date added: 2023-09-02] tc_reported 1992 Kinney [Estate of] v. Commr., 39 T.C. 728 (1963) Failure to take property out of trust treated as the equivalent of a transfer to the trust for purposes of the federal estate tax retained interest provisions.||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 1963 Knudsen v. Commr., 131 T.C. 185 (2008) "An allocation of the burden of proof is relevant only when there is equal evidence on both sides."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2008 Knudsen v. Commr., 131 T.C. 185 (2008) "[W]here the standard of proof is preponderance of the evidence and the preponderance of the evidence favors one party, we may decide the case on the weight of the evidence and not on an allocation of the burden of proof."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2008 Kraut v. Commr., 62 T.C. 420 (1974) "[I]t is a cardinal rule that, in characterizing a transaction for purposes of taxation, we are obliged to look beyond the form in which the parties have chosen to cast it and to draw our conclusions from that which we perceive to be the substance of the matter."||[categories: 'substance over form']|[related cases: F. & R. Lazarus & Co. [Helvering v.], Cooper v. Commr., Harbor Bancorp v. Commr.]|[date added: 2023-09-02] tc_reported 1974 Kresser v. Commr., 54 T.C. 1621 (1970) The Tax Court disallowed a "bottom line" tax loss allocation provision because the allocation did not accurately reflect the economic basis upon which the partners agreed to share profits and losses.||[categories: '704(b)', 'partnerships']|[related cases: ]|[date added: 2023-09-02] tc_reported 1970 Landreth v. Commr., 50 T.C. 803 (1968) Creating a judicial exception that a guarantor does not realize discharge of indebtedness income upon the release of a contingent liability.||[categories: '61', '108', 'cancellation of indebtedness income', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 1968 Lare v. Commr., 62 T.C. 739 (1974) "[S]tatements made in a tax return signed by a taxpayer may be treated as admissions."||[categories: 'returns and amended returns']|[related cases: Badaracco v. Commr., McCarthy v. U.S.]|[date added: 2023-09-02] tc_reported 1974 Laureys v. Commr., 92 T.C. 101 (1989) Expert testimony is not useful when the expert is merely an advocate for the position argued by one of the parties.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1989 Laureys v. Commr., 92 T.C. 101 (1989) Taxpayer who purchased and sold options was a trader.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1989 Lazarus v. Commr., 58 T.C. 854 (1972) The principle of substance over form is "peculiarly applicable to annuities and trusts because they are easily susceptible of manipulation so as to create illusion."||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1972 Leahy v. Commr., 87 T.C. 56 (1986) Transfer of the benefits and burdens of ownership govern for federal tax purposes, rather than the technical requirements of passage of title under state law.||[categories: '1001', 'other', 'ownership', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] tc_reported 1986 Leavell v. Commr., 104 T.C. 140 (1995) Compensation paid by Houston Rockets to a wholly owned personal service corporation of one its players was includable in the player's gross income.||[categories: '61', 'gross income', 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1995 Lewis v. Commr., 128 T.C. 48 (2007) "[A] conference with the appeals office provides a taxpayer a meaningful opportunity to dispute an underlying tax liability."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2007 Loftstrom v. Commr., 125 T.C. 271 (2005) Taxpayers' daughter's rent-free use of the business portion of a house for a period during the tax year constitutes personal use by the taxpayers.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 2005 Lohrke v. Commr., 48 T.C. 679 (1967) Allowing a deduction by a shareholder on behalf of a corporate taxpayer for an expenditure the corporation was financially unable to pay to "protect or promote" the business.||[categories: '162', 'business expenses', 'corporations']|[related cases: DuPont [Deputy v.], Welch v. Helvering, Pantages Theatre Co. v. Welch]|[date added: 2023-09-02] tc_reported 1967 Lucas v. Commr., 79 T.C. 1 (1982) "[A] trade or business expense deduction is not allowable to an employee to the extent that the employee is entitled to reimbursement from his or her employer for an expenditure related to his or her status as an employee."||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1982 Madorin v. Commr., 84 T.C. 667 (1985) The attribution of ownership under the grantor trust scheme may extend to both trust income and trust corpus.||[categories: 'trusts']|[related cases: ]|[date added: 2023-09-02] tc_reported 1985 Magana v. Commr., 118 T.C. 488 (2002) Taxpayer not permitted to raise in the judicial proceeding illness and hardship as defenses to the Commissioner's collection action where those matters were known to but not raised by the taxpayer during the administrative proceeding.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2002 Magill v. Commr., 70 T.C. 465 (1978) Taxpayer still has duty to read return to make sure all income included even if all data given to tax preparer.||[categories: 'penalties', 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1978 Magnon v. Commr., 73 T.C. 980 (1980) "The c​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​rucial test of the existence of a constructive dividend is whether 'the distribution was primarily for the benefit of the shareholder.'"||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] tc_reported 1980 Mandels [Estate of] v. Commr., 64 T.C. 61 (1975) This court ordinarily will not consider issues that have not been pleaded.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1975 Matthews v. Commr., 92 T.C. 351 (1989) Stating that the right of control, or lack of it, supplies the crucial test in determining the nature of a work relationship.||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] tc_reported 1989 Matthews v. Commr., 92 T.C. 351 (1989) Taxpayers employed by nonappropriated fund instrumentalities of the United States while living in Germany were employees of agencies of the United States; accordingly the income they received was not excludible foreign earned income.||[categories: '911', 'foreign earned income exclusion', 'international']|[related cases: ]|[date added: 2023-09-02] tc_reported 1989 Mayerson v. Commr., 47 T.C. 340 (1966) "Depreciation is not predicated upon ownership of property but rather upon an investment in property".||[categories: '167', 'depreciation']|[related cases: ]|[date added: 2023-09-02] tc_reported 1966 Mazzotta v. Commr., 57 T.C. 427 (1971) A taxpayer could not deduct expenses for traveling between his residence and his employment merely because he conducted a second business at home.||[categories: '162', 'tax101', 'travel expenses']|[related cases: Fausner v. Commr., Flowers [Commr. v.]]|[date added: 2023-09-02] tc_reported 1971 McCoy v. Commr., 76 T.C. 1027 (1981) "[R]emote or speculative possibilities of prosecution" were not sufficient to justify a taxpayer's disregard of rules and regulations.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1981 McCrary v. Commr., 92 T.C. 827 (1989) No reasonable person should have trusted the tax scheme in question to work.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 1989 McGee v. Commr., 61 T.C. 249 (1973) We may infer fraudulent intent from evidence a taxpayer was attempting to defraud another.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] tc_reported 1973 McGowan v. Commr., 67 T.C. 599 (1976) "[A]ll concessions, including stipulated settlement agreements, are subject to the court's discretionary review."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 McGuire v. Commr., 44 T.C. 801 (1965) Prices paid at auction for art, furnishings, and other personal property did not reflect fair market value in that the bidders at auctions were generally wholesalers or dealers who were buying for resale.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1965 Mckaig [Estate of] v. Commr., 51 T.C. 331 (1968) Notice insufficient when USPS informed IRS that the notice of deficiency had not been delivered and taxpayer's last known address was in question.||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 1968 McKay v. Commr., 89 T.C. 1063 (1987) Failure of witness to testify to fact peculiarly within his knowledge suggests that testimony would have been unfavorable.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 McKay v. Commr., 89 T.C. 1063 (1987) Referring to the notice of deficiency as a taxpayer's "ticket to the Tax Court".||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Mecom v. Commr., 101 T.C. 374 (1993) IRS officials "are presumed to have properly discharged their official duties".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1993 Meier v. Commr., 91 T.C. 273 (1988) A taxpayer’s inadequate record keeping evidences an intent "to conceal information" from the IRS.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1988 Melasky v. Commr., 151 T.C. 89 (2018) A dispute as to whether a payment was properly credited to the taxpayer's account for a particular tax year is not a challenge to his underlying tax liability.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 2018 Melvin v. Commr., 88 T.C. 63 (1987) "The relevant question is who, if anyone, will ultimately be obligated to pay the partnership's recourse obligations if the partnership is unable to do so. It is not relevant that the partnership *may* be able to do so. The scenario that controls is the worst-case scenario, not the best case".||[categories: '752', 'partnerships']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Mendes v. Commr., 121 T.C. 308 (2003) "[I]f an argument is not pursued on brief, we may conclude that it has been abandoned."||[categories: 'trial procedure']|[related cases: Nicklaus v. Commr., Vento v. Commr.]|[date added: 2023-09-02] tc_reported 2003 Messing v. Commr., 48 T.C. 502 (1967) Public offering price is a factor to be taken into account in valuing shares of stock in a company that was privately held on the valuation date; due regard must be give "to the time span involved between the critical dates and the dates of sale to the public, as well as to the contingencies inherent in the successful culmination of a contemplated public offering."||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1967 Millsap v. Commr., 91 T.C. 926 (1988) "[F]iling status * * * concerns a part of a deficiency that is no less significant than the amount of the income and deductions determined in arriving at an income tax deficiency".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1988 Ming [Estate of] v. Commr., 62 T.C. 519 (1974) "A taxpayer may not unilaterally oust the Tax Court from jurisdiction which, once invoked, remains unimpaired until it decides the controversy."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1974 Mitchell v. Commr., 131 T.C. 215 (2008) State law determines the nature of a property interest and federal law determines the federal taxation of that property interest.||[categories: 'other']|[related cases: Harmel [Burnet v.], Morgan v. Commr., Morgan v. Commr., Stuart [Helvering v.], Vissering v. Commr.]|[date added: 2023-09-02] tc_reported 2008 Monahan v. Commr., 109 T.C. 235 (1997) "[The Tax Court] may raise the doctrine of issue preclusion sua sponte."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1997 Monge v. Commr., 93 T.C. 22 (1989) "After respondent becomes aware of a taxpayer's change of address, he must exercise reasonable care and diligence in ascertaining and mailing the notice of deficiency to the correct address."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 1989 Morgens [Estate of] v. Commr., 133 T.C. 402 (2009) "[T]he policy behind the marital deduction rule is that property passes untaxed from the first spouse to die to his or her surviving spouse but is then included in the estate of the surviving spouse."||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 2009 Moss v. Commr., 80 T.C. 1073 (1983) "[D]aily meals are an inherently personal expense, and a taxpayer bears a heavy burden in proving they are routinely deductible."||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1983 Muncie v. Commr., 18 T.C. 849 (1952) Whether a theft occurred depends on the law of the jurisdiction where the loss was sustained.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1952 Neely v. Commr., 85 T.C. 934 (1985) The most critical consideration in determining whether a transfer is a gift is the transferor’s intention.||[categories: '2501', 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 1985 Neely v. Commr., 85 T.C. 934 (1985) Negligence is lack of due care or failure to do what a reasonable prudent person would do under the circumstances.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 1985 Neilson v. Commr., 94 T.C. 1 (1990) Tax Court lacks jurisdiction to decide whether a taxpayer's deficiencies were discharged in a bankruptcy proceeding.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1990 Nestor v. Commr., 118 T.C. 162 (2002) Directors of service centers have been delegated the authority to issue notices of deficiency.||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 2002 Newhall Unitrust v. Commr., 104 T.C. 236 (1995) "[I]t is well established that taxpayers are ordinarily bound by the form of their transaction while the government can attack that form if it does not represent the substance of the transaction."||[categories: 'substance over form']|[related cases: Shaw v. Commr.]|[date added: 2023-09-02] tc_reported 1995 Newhouse [Estate of] v. Commr., 94 T.C. 193 (1990) Property is valued according to the facts and circumstances existing on the valuation date.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1990 Newman [Estate of] v. Commr., 111 T.C. 81 (1998) "The relation-back doctrine does not apply to checks representing noncharitable gifts which were [signed and dated before D's death but] accepted and paid by the drawee after decedent's death."||[categories: '170', 'charitable contributions', 'relation-back doctrine']|[related cases: ]|[date added: 2023-09-02] tc_reported 1998 Nicholas v. Commr., 70 T.C. 1057 (1978) Holding bank deposits analysis sufficient when taxpayer fails to maintain required records.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] tc_reported 1978 Nicklaus v. Commr., 117 T.C. 117 (2001) Taxpayers abandoned arguments and contentions asserted prior to the filing of their brief where they failed to advance those arguments and contentions on brief.||[categories: 'trial procedure']|[related cases: Mendes v. Commr., Vento v. Commr.]|[date added: 2023-09-02] tc_reported 2001 Olive v. Commr., 139 T.C. 19 (2012) General ledgers by themselves are insufficient to substantiate items underlying a taxpayer's claimed deductions.||[categories: 'evidence', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2012 O'Neil v. Commr., 66 T.C. 105 (1976) "An amendment to the petition after the statutory filing period has expired cannot be used to seek a redetermination of an additional taxable year."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 Orum v. Commr., 123 T.C. 1 (2004) Upholding the Commissioner's determination because of the taxpayers' failure to timely provide requested information regarding their current financial condition in accordance with IRM guidelines.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2004 Otsuki v. Commr., 53 T.C. 96 (1969) A pattern of omission of gross receipts for five years was "strong evidence of an attempt to defraud the government".||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] tc_reported 1969 Packard v. Commr., 85 T.C. 397 (1985) “Business purpose is a question of fact, [and] we must look to all of the facts and circumstances[.]”||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1985 Palmer v. Commr., 62 T.C. 684 (1974) Respecting form of transaction where, pursuant to a single plan, the taxpayer donated stock to a foundation and then caused the corporation to redeem the stock from the foundation the day after the donation.||[categories: '170', 'charitable contributions', 'substance over form']|[related cases: Carrington v. Commr.]|[date added: 2023-09-02] tc_reported 1974 Palmer v. Commr., 62 T.C. 684 (1974) "[O]rdinarily, the price at which the same or similar property has changed hands is persuasive evidence of fair market value. * * * Where the parties to the sale have dealt with each other at arm's length and the sale is within a reasonably close period of time to the valuation date, the price agreed upon is considered to have accurately reflected conditions in the market."||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1974 Patel v. Commr., 138 T.C. 395 (2012) A taxpayer reasonably claimed a deduction where the law governing the deduction's availability was in an “uncertain state.”||[categories: 'other', 'reasonable cause']|[related cases: Braddock v. Commr., Hitchins v. Commr., Williams v. Commr.]|[date added: 2023-09-02] tc_reported 2012 Peck v. Commr., 90 T.C. 162 (1988) "The parties must actually have litigated the issues and the resolution of these issues must have been essential to the prior decision" in order for collateral estoppel to apply.||[categories: 'estoppel', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1988 Pekar v. Commr., 113 T.C. 158 (1999) "Each taxable year stands on its own and must be separately considered."||[categories: 'annual accounting']|[related cases: ]|[date added: 2023-09-02] tc_reported 1999 Penrod v. Commr., 88 T.C. 1415 (1987) "[T]he step transaction doctrine is in effect another rule of substance over form[.]"||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Pepsi-Cola Bottling of Salina v. Commr., 61 T.C. 564 (1974) It is "well settled" that the court should consider the multifactor approach in reasonable compensation cases.||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] tc_reported 1974 Perlmutter v. Commr., 45 T.C. 311 (1965) Disallowing charitable contribution deduction where taxpayer conveyed property for school and recreational uses to obtain approval for subdivision.||[categories: '170', 'charitable contributions']|[related cases: ]|[date added: 2023-09-02] tc_reported 1965 Peters v. Commr., 51 T.C. 226 (1968) Money ​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​obtained by impersonating cancer patient not gift.||[categories: '61', 'estate and gift taxes', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 1968 Pettit v. Commr., 61 T.C. 634 (1974) "[A] 'gift' has been generally defined as a voluntary transfer of property by the owner to another without consideration therefor."||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 1974 Petzoldt v. Commr., 92 T.C. 661 (1989) The IRS has great latitude in reconstructing a taxpayer's income, and the reconstruction "need only be reasonable in light of all surrounding facts and circumstances".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1989 Petzoldt v. Commr., 92 T.C. 661 (1989) Fraudulent intent may be inferred from "badges of fraud".||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] tc_reported 1989 Phillips v. Commr., 88 T.C. 529 (1987) Respondent "may not choose to litigate against the officially published rulings * * * without first withdrawing or modifying those rulings. the result of contrary action is capricious application of the law".||[categories: 'authorities', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Pierre v. Commr., 133 T.C. 24 (2009) "[A] sole proprietorship is generally understood to have no legal identity apart from the proprietor".||[categories: 'entity classification']|[related cases: ]|[date added: 2023-09-02] tc_reported 2009 Pierson v. Commr., 115 T.C. 576 (2000) Discussing the potential application of penalties where tax protesters persist in bringing frivolous cases to this court.||[categories: 'frivolous', 'penalties']|[related cases: ]|[date added: 2023-09-02] tc_reported 2000 Pike v. Commr., 78 T.C. 822 (1982) Denying interest deductions to taxpayers participating in Kersting's tax shelters because the transactions conducted by Kersting's corporations were shams lacking economic substance.||[categories: 'economic substance', 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1982 Pointer v. Commr., 48 T.C. 906 (1967) "[I]ndeed, it has been said that in real estate transactions a sale to any purchaser is, in effect, a sale to a 'customer'."||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] tc_reported 1967 Pollock v. Commr., 132 T.C. 21 (2009) "[I]f a deadline is jurisdictional, a court may not use equitable tolling to extend it * * * even if the result is harsh."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2009 Potter v. Commr., 44 T.C. 159 (1965) Methods of accounting must be regular and consistent.||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] tc_reported 1965 Powell v. Commr., 91 T.C. 673 (1988) "[W]e recognize that respondent must take alternative or inconsistent positions at times to protect the revenue, but * * * [respondent] may not take such a position without good cause."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1988 Powers v. Commr., 100 T.C. 457 (1993) Accepting fair market values which had declined significantly from acquisition costs.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1993 Prashker v. Commr., 59 T.C. 172 (1972) "The key question is whether or not the debt of the corporation runs 'directly to the shareholder'".||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1972 Pulsifer v. Commr., 64 T.C. 245 (1975) Taxpayers were currently taxable on prize money that they would receive in the future but which was irrevocably set aside for their benefit.||[categories: 'timing']|[related cases: ]|[date added: 2023-09-02] tc_reported 1975 Pyo v. Commr., 83 T.C. 626 (1984) Taxpayers were reasonably entitled to assume, after receiving correspondence from IRS at new address, that future mailings would be sent to same address||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1984 Ragghianti v. Commr., 71 T.C. 346 (1978) "Record ownership of stock, standing alone, is not determinative * * * beneficial ownership is the controlling factor." Shareholder acquired stock upon posting a bond required by state law to ensure payment of purchase price, even though the selling shareholders continued to hold the stock.||[categories: 'other', 'ownership']|[related cases: Hoffman v. Commr.]|[date added: 2023-09-02] tc_reported 1978 Rauenhorst v. Commr., 119 T.C. 157 (2002) "[A] gift of appreciated property does not result in income to the donor so long as he gives the property away absolutely and parts with title thereto before the property gives rise to income by way of a sale."||[categories: '61', 'estate and gift taxes', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 2002 Rauenhorst v. Commr., 119 T.C. 157 (2002) We have treated revenue rulings as concessions by the Commissioner where the rulings were relevant to the disposition of the case.||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] tc_reported 2002 Rechtzigel v. Commr., 79 T.C. 132 (1982) Default as sanction for taxpayer's willful flouting of court- ordered discovery that hampered Commissioner's ability to develop his case.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1982 Recklitis v. Commr., 91 T.C. 874 (1988) Suggesting the importance of "capitalization averages" in the relevant business when analyzing the alleged thin capitalization of a corporation.||[categories: '385', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] tc_reported 1988 Redford v. Commr., 28 T.C. 773 (1957) Contingent portion of purchase price, not in fact paid, not added to cost basis.||[categories: 'basis']|[related cases: ]|[date added: 2023-09-02] tc_reported 1957 Reed v. Commr., 55 T.C. 32 (1970) Legal expenditures to remove restrictions on the transferability of a partnership interest are capital in nature.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] tc_reported 1970 Reichardt [Estate of] v. Commr., 114 T.C. 144 (2000) Implied agreement existed where decedent used partnership's checking account as his own, lived rent free in a home owned by the partnership, and maintained the same relationship with assets before and their transfer.||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 2000 Richardson v. Commr., 72 T.C. 818 (1979) "[I]t is well established that the filing of an unsigned return form is not the filing of a return and does not start the running of the statute of limitations against respondent."||[categories: '6501', 'returns and amended returns', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] tc_reported 1979 Riland v. Commr., 79 T.C. 185 (1982) Failure to abide by IRM procedures not a violation of due process.||[categories: 'constitution']|[related cases: ]|[date added: 2023-09-02] tc_reported 1982 Rivers v. Commr., 33 T.C. 935 (1960) The taxpayer has the burden of establishing his right to dependency exemptions and that the court is not authorized or required to conjecture as to the total amount expended on the support of a taxpayer's claimed dependent.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1960 Roberts v. Commr., 62 T.C. 834 (1974) In the context of a taxpayer's refusal to substantiate his deductions, the court rejected the argument that the Commissioner may assess deficiencies only when he has specific information that a claimed deduction is not permitted.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1974 Roberts v. Commr., 62 T.C. 834 (1974) A taxpayer does not satisfy his burden to substantiate claimed business expenses by merely signing his return under penalty of perjury and testifying to its accuracy, without producing additional evidence.||[categories: 'evidence', 'returns and amended returns', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1974 Robinson v. Commr., 2 T.C. 305 (1943) Upkeep expense and depreciation deductions allowed on a vacant building that could not be currently rented.||[categories: '162', '167', 'business expenses', 'depreciation']|[related cases: ]|[date added: 2023-09-02] tc_reported 1943 Robinson v. Commr., 102 T.C. 116 (1994) The court's holding need not be consistent with the terms of a settlement agreement when those terms do not reflect the realities of the settlement.||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1994 Rolfs v. Commr., 135 T.C. 471 (2010) Considering disclosure on tax returns as a factor to be considered in the reasonable cause and good faith test.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 2010 Rose v. Commr., 88 T.C. 386 (1987) Allowing deduction of interest payments "attributable to the forbearance of amounts due on genuine indebtedness" in connection with a transaction lacking economic substance.||[categories: '163', 'interest expense']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Roubik v. Commr., 53 T.C. 365 (1969) Income [was] earned by [the] individual [physicians] where [the] corporation did not enter into any agreements with third parties and [the] agreements between [the] physicians in their independent capacities and [the] third parties continued after [the] corporation was formed.||[categories: '61', 'assignment of income', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 1969 Rushing v. Commr., 52 T.C. 888 (1969) "Whatever personal benefit, if any, [the sole shareholder of the transferor and transferee corporations] received was derivative in nature. Since no direct benefit was received, we cannot properly hold he received a constructive dividend."||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] tc_reported 1969 Rutz v. Commr., 66 T.C. 879 (1976) Disallowing business expense deductions because the taxpayer could not establish the business purpose for each expense.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 Samueli v. Commr., 132 T.C. 37 (2009) Discussing a grantor trust as a disregarded entity such that the grantor is treated as the owner of what the trust owns.||[categories: 'trusts']|[related cases: ]|[date added: 2023-09-02] tc_reported 2009 Sanford v. Commr., 50 T.C. 823 (1968) Strict substantiation provision takes precedence over Cohan rule.||[categories: '162', 'business expenses']|[related cases: Vanicek v. Commr., Cohan v. Commr., Lerch v. Commr., Lewis v. Commr.]|[date added: 2023-09-02] tc_reported 1968 Saviano v. Commr., 80 T.C. 955 (1983) "[I]t is clear that a cash basis taxpayer cannot deduct an expense incurred unless it has been paid during the taxable year".||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] tc_reported 1983 Schwab v. Commr., 136 T.C. 120 (2011) Finding life insurance policies to have fair market values despite the polices' net cash-surrender values of zero.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 2011 Schwalbach v. Commr., 111 T.C. 215 (1998) Finding reasonable reliance where taxpayers consulted their long-time business and tax adviser, he advised them on what he believed was the correct reporting position, and they followed his advice.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 1998 Security State Bank v. Commr., 111 T.C. 210 (1998) "[T]he doctrine of stare decisis generally requires that we follow the holding of a previously decided case, absent special justification."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1998 Segel v. Commr., 89 T.C. 816 (1987) The touchstone of economic reality is whether an outside lender would have made the payments in the same form and on the same terms.||[categories: '385', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Sego v. Commr., 114 T.C. 604 (2000) Taxpayers who deliberately refused to accept delivery of the notices of deficiency repudiated the opportunity to contest the notices of deficiency in the Tax Court.||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 2000 Sharon v. Commr., 66 T.C. 515 (1976) Citing costs of commuting and ordinary clothing as examples of expenses helpful and necessary to an individual's employment that are "essentially personal" and hence nondeductible.||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 Shaw v. Commr., 59 T.C. 375 (1972) "[The] preference for substance over form in tax matters extends to claims of petitioner and respondent alike."||[categories: 'substance over form']|[related cases: Newhall Unitrust v. Commr.]|[date added: 2023-09-02] tc_reported 1972 Shea v. Commr., 112 T.C. 183 (1999) "[W]hen the Commissioner attempts to rely on a basis that is beyond the scope of the original deficiency determination, the Commissioner must generally assume the burden of proof as to the new matter."||[categories: 'deficiency', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1999 Sheldon v. Commr., 94 T.C. 738 (1990) Disallowing deductions for interest owed to securities repo counterparties where the repo transactions "lacked tax-independent purpose".||[categories: '163', 'interest expense']|[related cases: ]|[date added: 2023-09-02] tc_reported 1990 Silver Queen Motel v. Commr., 55 T.C. 1101 (1971) "The notion of changes in accounting method necessarily implies that a new accounting method is being substituted for a previously regularly used accounting method."||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] tc_reported 1971 Simpson v. Commr., 141 T.C. 331 (2013) Taxpayers generally bear the burden of proving that settlement proceeds "fall squarely within the requirements for any exclusion from gross income".||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2013 Singleton v. Commr., 65 T.C. 1123 (1976) The Co​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​mmissioner's failure to call a certain witness gives rise to the inference that any proof, if offered, would have been unfavorable.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 Skripak v. Commr., 84 T.C. 285 (1985) Market absorption discount applied to charitable contribution of large collection of books.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] tc_reported 1985 Sloan v. Commr., 102 T.C. 137 (1994) "Alterations of portions of the jurat * * * invalidate an otherwise complete and accurate return."||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] tc_reported 1994 Smith v. Commr., 80 T.C. 1165 (1983) Taxpayer substantiated business mileage by producing schedule of his business travel that listed city and state he traveled to and from and dates of travel.||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1983 Spiegelman v. Commr., 102 T.C. 394 (1994) Concluding that recipient of taxable research fellowship was not liable for self-employment tax.||[categories: '1402', 'self-employment tax']|[related cases: ]|[date added: 2023-09-02] tc_reported 1994 Steffke [Estate of] v. Commr., 64 T.C. 530 (1975) "[M]arriage, its existence and dissolution, is particularly within the province of the states."||[categories: '2056', 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] tc_reported 1975 Stralla v. Commr., 9 T.C. 801 (1947) Partnership interests designated as belonging to certain individuals on the partnership books and records found to belong to someone else on-the basis of facts and circumstances.||[categories: 'partnerships', 'substance over form']|[related cases: ]|[date added: 2023-09-02] tc_reported 1947 Stringer v. Commr., 84 T.C. 693 (1985) "[O]n numerous occasions, we in essence have defaulted or dismissed issues for failure to brief them. Generally, we have accomplished this result by considering the issue waived or conceded."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1985 Suarez v. Commr., 58 T.C. 792 (1972) Looking behind notice of deficiency appropriate if notice based on evidence seized in violation of Fourth Amendment.||[categories: 'constitution', 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 1972 Superior Trading, LLC v. Commr., 137 T.C. 70 (2011) Disregarding partnership where parties lacked common intention to collectively pursue joint economic outcome.||[categories: 'partnerships']|[related cases: ]|[date added: 2023-09-02] tc_reported 2011 Superior Trading, LLC v. Commr., 137 T.C. 70 (2011) Discussing the binding commitment test, the end result test, and the interdependence test, three alternative tests that courts employ to invoke the step transaction doctrine and disregard a transaction's intervening steps.||[categories: 'substance over form']|[related cases: Gordon [Commr. v.], Gordon v. Commr., Associated Wholesale Grocers Inc. v. U.S., Associated Wholesale Grocers Inc. v. U.S.]|[date added: 2023-09-02] tc_reported 2011 Swanson v. Commr., 65 T.C. 1180 (1976) "[A] taxpayer is not entitled to a jury trial in the Tax Court".||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 Swenson v. Commr., 43 T.C. 897 (1965) Taxpayer was not entitled to bad debt deduction because of ex-spouse's failure to pay court-ordered child support.||[categories: '166', 'bad debt expense']|[related cases: ]|[date added: 2023-09-02] tc_reported 1965 Takahashi v. Commr., 87 T.C. 126 (1986) Taxpayers failed to demonstrate a connection between their attendance at a seminar in Hawaii on "Hawaiian cultural transition in a diverse society" and their jobs as science teachers.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1986 Tanner v. Commr., 45 T.C. 145 (1965) Rejecting a West Virginia taxpayer's attempt to take above-the-line deductions for West Virginia income tax he paid on his share of net income earned by an accounting firm of which he was a partner.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1965 Taracido [Estate of] v. Commr., 72 T.C. 1014 (1979) Where sole shareholder was sine qua non of corporation's success, corporation's goodwill did not include the personal qualities of its sole shareholder.||[categories: 'corporations']|[related cases: ]|[date added: 2023-09-02] tc_reported 1979 Tempel v. Commr., 136 T.C. 341 (2011) State-tax refunds are not income unless the taxpayer claimed a deduction for them--for example, by itemizing for the previous year.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 2011 Temple [Estate of] v. Commr., 67 T.C. 143 (1976) "[W]hile a taxpayer's reliance upon his accountant to prepare accurate returns may indicate an absence of fraudulent intent, * * * this is true in the first instance only if the accountant has been supplied with all the information necessary to prepare the returns."||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] tc_reported 1976 Thoburn v. Commr., 95 T.C. 132 (1990) IRM provisions are not binding on the Commissioner and confer no rights on taxpayers.||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] tc_reported 1990 Thompson v. Commr., 140 T.C. 173 (2013) "[A] taxpayer is precluded from disputing the underlying liability if it was not properly raised in the CDP hearing."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2013 Thompson v. Commr., 155 T.C. 87 (2020) A preliminary proposal of penalties in an offer letter was not an "initial determination" because the examination was not yet complete.||[categories: 'other', 'penalties']|[related cases: ]|[date added: 2023-09-02] tc_reported 2020 Tippin v. Commr., 104 T.C. 518 (1995) Taxpayer failed to show any relationship between the interest expense and any business.||[categories: '163', 'interest expense']|[related cases: ]|[date added: 2023-09-02] tc_reported 1995 Tokarski v. Commr., 87 T.C. 74 (1986) The court is not required to accept a taxpayer's self-serving testimony as gospel.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1986 Tokarski v. Commr., 87 T.C. 74 (1986) Where respondent determined that petitioner had unreported income using the bank deposits method, respondent was not required to produce evidence linking petitioner's income to an income producing activity.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] tc_reported 1986 Tokarski v. Commr., 87 T.C. 74 (1986) The court is not required to accept a taxpayer's testimony as gospel.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1986 Tomlinson v. Commr., 58 T.C. 570 (1972) “[W]e have long recognized that these intangibles [including customer lists] are capital assets.”||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] tc_reported 1972 Tonn v. Commr., T.C. Memo. 2001-123 The value of taxpayer labor does not increase basis and a taxpayer is not entitled to a deduction for the imputed value of services that he has not been required to report as income.||[categories: 'basis', 'tax101']|[related cases: Hort v. Commr., Hutcheson v. Commr., Hendricks v. Commr.]|[date added: 2023-09-02] tc_reported 2001 Travis v. Commr., 47 T.C. 502 (1967) Where a "corporation was on the cash basis for most items of income but was on an accrual basis for all items of expense", sustaining the Commissioner's determination that this accounting system did not clearly reflect income.||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] tc_reported 1967 Trousdale v. Commr., 16 T.C. 1056 (1951) "It has long been held that a taxpayer may not avoid his tax liability on income which he has earned by the simple expedient of drawing up legal papers and assigning that income to others".||[categories: '61', 'assignment of income', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 1951 Trout v. Commr., 131 T.C. 239 (2008) "[B]ut nothing in Golsen or in Lawrence precludes us from revisiting an issue, as we do here, when the issue on which there has been an intervening reversal arises anew."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2008 Truesdell v. Commr., 89 T.C. 1280 (1987) "[D]iverted amounts taxed to a shareholder as constructive dividends also remain fully taxable to the corporation to which attributable".||[categories: '61', '301', 'corporations', 'dividends', 'gross income']|[related cases: ]|[date added: 2023-09-02] tc_reported 1987 Underhill v. Commr., 45 T.C. 489 (1966) Finding the open transaction doctrine did not apply where the amounts required to be paid were fixed and the obligation to pay was not subject to a prior condition.||[categories: 'open transaction doctrine', 'other']|[related cases: Logan [Burnet v.]]|[date added: 2023-09-02] tc_reported 1966 Van Anda [Estate of] v. Commr., 12 T.C. 1158 (1949) Debt transactions involving related parties are subject to "rigid scrutiny".||[categories: 'other', 'related parties']|[related cases: Culbertson [Commr. v.], Bongard [Estate of] v. Commr., Clark v. Commr.]|[date added: 2023-09-02] tc_reported 1949 Vanicek v. Commr., 85 T.C. 731 (1985) Under the Cohan rule, the court should estimate the deductible amount of an expense only if there is a reasonable basis for the estimate.||[categories: '162', 'business expenses']|[related cases: Sanford v. Commr., Cohan v. Commr., Lerch v. Commr., Lewis v. Commr.]|[date added: 2023-09-02] tc_reported 1985 Vento v. Commr., 147 T.C. 198 (2019) The bar on new issues is “rigorously enforce[d]” by the Tax Court.||[categories: 'trial procedure']|[related cases: Mendes v. Commr., Nicklaus v. Commr.]|[date added: 2023-09-02] tc_reported 2019 Vinatieri v. Commr., 133 T.C. 392 (2009) The Commissioner's policy of requiring individuals seeking collection alternatives to be current with filing their tax returns is reasonable.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 2009 Vissering v. Commr., 96 T.C. 749 (1991) "[I]t is virtually hornbook law that state law determines the legal interests and rights created by a trust instrument, while federal law determines the federal tax consequences of those interests and rights."||[categories: 'other']|[related cases: Harmel [Burnet v.], Morgan v. Commr., Morgan v. Commr., Stuart [Helvering v.], Mitchell v. Commr.]|[date added: 2023-09-02] tc_reported 1991 Von-Lusk v. Commr., 104 T.C. 207 (1995) Requiring that a partnership capitalize property taxes where the partnership was organized to manage, hold, and develop property for investment.||[categories: '263', 'capital expenditures', 'partnerships']|[related cases: ]|[date added: 2023-09-02] tc_reported 1995 Walet v. Commr., 31 T.C. 461 (1958) Property held for personal use of taxpayer's former wife and child not held for production of income.||[categories: '212', 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1958 Wallace v. Commr., 128 T.C. 132 (2007) "The meaning of an unclear word or phrase should be determined by the words immediately surrounding it."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] tc_reported 2007 Watson v. Commr., 35 T.C. 203 (1960) Purchase price for partnership included payment for tangible assets and goodwill.||[categories: '1221', 'capital vs. ordinary', 'goodwill', 'partnerships']|[related cases: ]|[date added: 2023-09-02] tc_reported 1960 Webber v. Commr., 144 T.C. 324 (2015) Applying the investor control doctrine to treat the insured under [a life insurance] policy as owning assets held in a segregated investment account in support of that policy.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 2015 Weber v. Commr., 103 T.C. 378 (1994) "[T]o be properly reported on schedule C, a taxpayer's expenses must come from a trade or business of his own, other than that of being an employee."||[categories: '162', '212', 'business expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1994 Wheeler v. Commr., 127 T.C. 200 (2006) A notice of deficiency's failure to include a statutory citation for each adjustment does not invalidate the notice.||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] tc_reported 2006 Wierschem v. Commr., 82 T.C. 718 (1984) "[A]llowed a taxpayer to elect the installment method subsequent to filing his tax return for the year of sale when the taxpayer's original choice of reporting income from the sale is an impermissible method."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1984 Wilbanks [Estate of] v. Commr., 94 T.C. 306 (1990) Because there was no closing agreement, government could assert a late filing penalty, even though the late filing penalty had previously been asserted and then abated.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 1990 Wilkins v. Commr., 120 T.C. 109 (2003) "[T]he Internal Revenue Code simply does not provide a tax deduction, credit, or other allowance for slavery reparations."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 2003 Wilkinson v. Commr., 71 T.C. 633 (1979) “[T]he fact that a return is signed under penalty of perjury is not sufficient to substantiate deductions claimed on it.”||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1979 Williams v. Commr., 123 T.C. 144 (2004) Reasonable cause may be found where return position involves issues that were novel as of the time that return was filed.||[categories: 'penalties', 'reasonable cause']|[related cases: Braddock v. Commr., Hitchins v. Commr., Patel v. Commr.]|[date added: 2023-09-02] tc_reported 2004 Williams v. Commr., 151 T.C. 1 (2018) "[I]f * * * two statutes can coexist, it is the duty of the courts to give effect to both."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] tc_reported 2018 Williams v. Commr., 53 T.C. 58 (1969) Head-o​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​f-household status denied on the grounds that the taxpayer had never lived in his adopted son's house.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1969 Williams v. Commr., 119 T.C. 276 (2002) A purpose of delay was shown where the taxpayer improperly used the bankruptcy courts to delay the Tax Court proceedings, failed to appear at hearings and to comply with court orders, failed to reply to the Commissioner's settlement offers, and failed to respond to discovery requests.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2002 Wnuck v. Commr., 136 T.C. 498 (2011) Addressing frivolous arguments wastes time and resources and delays the assessment of tax.||[categories: 'frivolous', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] tc_reported 2011 Wnuck v. Commr., 136 T.C. 498 (2011) "[A]nyone fluent in English knows that the word 'includes' cannot be assumed to mean 'includes only'."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] tc_reported 2011 Wood v. Commr., 16 T.C. 213 (1951) "[I]t is well settled that property cannot be classified as stock in trade or property subject to inventory unless it is held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business."||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] tc_reported 1951 Wood v. Commr., 25 T.C. 468 (1955) Maintenance of office and full-time employment of office assistant to keep books and records relating to purchase and sale of lots and land contracts indicated taxpayer was in trade or business of selling real estate and that properties sold during years at issue were held primarily for sale to customers in ordinary course of that trade or business.||[categories: '162', '1221', 'capital vs. ordinary', 'trade or business']|[related cases: ]|[date added: 2023-09-02] tc_reported 1955 Wyatt v. Commr., 56 T.C. 517 (1971) A taxpayer who had been absent from teaching for fours years was not in the trade or business of teaching and was preparing for the resumption of an old trade or business.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] tc_reported 1971 Yagoda v. Commr., 39 T.C. 170 (1962) A transferee is liable for all existing debts of the transferor, "whether or not such debts had been determined, or were even known at that time".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] tc_reported 1962 Yari v. Commr., 143 T.C. 157 (2014) The process of divining the legislative intent underlying a statute's * * * structure, while subject to canons of construction and well-established methodologies, is hardly an exact science."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] tc_reported 2014 Zirker v. Commr., 87 T.C. 970 (1986) No actual sale of cattle took place and the correct adjusted basis of cattle was zero.||[categories: 'basis']|[related cases: ]|[date added: 2023-09-02] tc_reported 1986 330 W. Hubbard Restaurant Corp. v. U.S., 203 F.3d 990 (7th Cir. 2000) "[A]lthough we are not bound by them, we 'carefully and respectfully consider' the opinions of our sister circuits."||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 2000 Abatti v. Commr., 859 F.2d 115 (9th Cir. 1988) Defining fraud upon the court as "an unconscionable plan or scheme which is designed to improperly influence the court in its decision" or a fraudulent act that "prevents the opposing party from fully and fairly presenting his case".||[categories: 'criminal/fraud', 'trial procedure']|[related cases: Toscano v. Commr.]|[date added: 2023-09-02] appellate 1988 Abatti v. Commr., 859 F.2d 115 (9th Cir. 1988) A taxpayer's misunderstanding of the Tax Court's rules is insufficient to overcome the doctrine of finality.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1988 ACM Partnership v. Commr., 157 F.3d 231 (3d Cir. 1998) Allowing deductions for securities that had "objective economic consequences apart from tax benefits * * * even when incurred in the context of a broader transaction that constitute[d] an economic sham".||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1998 ACM Partnership v. Commr., 157 F.3d 231 (3d Cir. 1998) Sophisticated investment partnership formed and manipulated solely to generate a capital loss to shelter some of Colgate-Palmolive's capital gains.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1998 Adkins Props. v. Commr., 143 F.2d 380 (5th Cir. 1944) Holding trust with "an active business purpose, having the general characteristics and advantages of corporate organization" was taxable as an association.||[categories: 'corporations', 'entity classification', 'trusts']|[related cases: ]|[date added: 2023-09-02] appellate 1944 Adler v. Commr., 330 F.2d 91 (9th Cir. 1964) "[N]or can any interpretation by taxpayers of the language used in government pamphlets act as an estoppel against the government, nor change the meaning of taxing statutes[.]"||[categories: 'authorities', 'estoppel']|[related cases: Corbalis v. Commr.]|[date added: 2023-09-02] appellate 1964 Ahrens [U.S. v.], 530 F.2d 781 (8th Cir. 1976) "[T]he Form [3877] is considered highly probative evidence that the notice of deficiency was sent to the address specified."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1976 Ahrens [U.S. v.], 530 F.2d 781 (8th Cir. 1976) "[T]he presumption of regularity supports the official acts of public officers and, in the absence of clear evidence to the contrary, courts presume they have properly discharged their official duties."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1976 Alderson v. U.S., 686 F.3d 791 (9th Cir. 2012) Section 1234a applies only to gain or loss "with respect to property ... which is a capital asset in the hands of the taxpayer".||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] appellate 2012 Allen [U.S. v.], 293 F.2d 916 (10th Cir. 1961) Consideration is "adequate and full" only if it equals or exceeds the value of the property that would otherwise be included in the gross estate absent the transfer.||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] appellate 1961 Allen [U.S. v.], 551 F.2d 208 (8th Cir. 1977) Taxpayer, a real estate broker, was taxed on commission earned on sale of house to his parents; commission turned over to his parents; taxpayer argued that he had agreed to sell the house to his parents free of a commission and, therefore, had waived the commission.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1977 Allen v. Commr., 925 F.2d 348 (9th Cir. 1991) Taxpayers negligent where tax savings were almost double the amount of their cash outlay.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Allnutt v. Commr., 523 F.3d 406 (4th Cir. 2008) Taxpayer's hand delivery of returns to wrong individual does not constitute a filing.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 2008 Alterman Foods Inc. v. U.S., 505 F.2d 873 (5th Cir. 1974) Listing nine factors considered by courts to determine whether a payment by a subsidiary corporation to its parent was a loan or a dividend.||[categories: '301', 'corporations', 'dividends', 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Alterman Foods Inc. v. U.S., 505 F.2d 873 (5th Cir. 1974) "Allegedly objective economic indicia of debt such as consistent bookkeeping and consistent financial reporting on balance sheets are * * * little more than additional declarations of intent, without any * * * objective economic indicia of debt."||[categories: '385', 'corporations', 'debt vs. equity', 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Amer. Fletcher Corp. v. U.S., 832 F.2d 436 (7th Cir. 1987) “Taxpayers are required to keep adequate records to support their declaration of taxable income, and have no grounds for protest if the Commissioner imposes a workable accounting method when confronted with inadequate records.”||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Amerada Hess Corp. v. Commr., 517 F.2d 75 (3d Cir. 1975) Fair market value of securities traded on a stock exchange generally is the average exchange price quoted on the valuation date.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 1975 Amerco Inc. v. Commr., 979 F.2d 162 (9th Cir. 1992) "[I]t is possible to have a true insurance transaction between a corporation and its wholly owned subsidiary company if that captive company does substantial unrelated business".||[categories: 'insurance', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1992 American Electric Power Company Inc. v. U.S., 326 F.3d 737 (6th Cir. 2003) "[M]oney generated by means of abusive tax deductions can always be applied to beneficial causes, but the eventual use of the money thus generated is not part of the economic sham analysis."||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2003 Anastasato v. Commr., 794 F.2d 884 (3d Cir. 1986) "[I]f the taxpayer rebuts the presumption by showing that it is arbitrary and erroneous * * * the presumption disappears."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Anselmo v. Commr., 757 F.2d 1208 (11th Cir. 1985) "[I]n the usual case, however, there should be no distinction between the measure of fair market value for estate and gift tax and charitable contribution purposes."||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 1985 ASA Investerings Partnership v. Commr., 201 F.3d 505 (D.C. Cir. 2000) "[T]he absence of a nontax business purpose is fatal."||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2000 Askin & Marine Co. v. Commr., 66 F.2d 776 (2d Cir. 1933) Applying principles of equitable estoppel so that "a taxpayer may not benefit at the expense of the government by misrepresenting facts under oath".||[categories: 'estoppel', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1933 Asphault Industries Inc. v. Commr., 384 F.2d 229 (3d Cir. 1967) Fraud of a sole shareholder may be attributed to the corporation; however, a corporation was not subject to fraud penalties where an innocent stockholder owned one-half of the corporation.||[categories: 'criminal/fraud', 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1967 Associated Wholesale Grocers Inc. v. U.S., 927 F.2d 1517 (10th Cir. 1991) Declining to apply the binding commitment test because the case did not involve a series of transactions spanning several years.||[categories: 'substance over form']|[related cases: Gordon [Commr. v.], Gordon v. Commr., Superior Trading, LLC v. Commr., Associated Wholesale Grocers Inc. v. U.S.]|[date added: 2023-09-02] appellate 1991 Associated Wholesale Grocers Inc. v. U.S., 927 F.2d 1517 (10th Cir. 1991) Finding end result test inappropriate but applying the step transaction doctrine using the interdependence test.||[categories: 'substance over form']|[related cases: Gordon [Commr. v.], Gordon v. Commr., Superior Trading, LLC v. Commr., Associated Wholesale Grocers Inc. v. U.S.]|[date added: 2023-09-02] appellate 1991 Bachner v. Commr., 81 F.3d 1274 (3d Cir. 1996) "Inclusion of the taxpayer's signature is a prerequisite to the validity of the tax return for purposes of the statute of limitations."||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1996 Baier [Estate of] v. Commr., 533 F.2d 117 (3d Cir. 1976) Litigation expenses incurred incident to a dispute over the terms of a disposition are capital.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] appellate 1976 Bail Bonds by Marvin Nelson Inc. v. Commr., 820 F.2d 1543 (9th Cir. 1987) A loan was a sham, but implying that if it were bona fide, interest would be deductible.||[categories: 'economic substance', 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Barlow v. Commr., 301 F.3d 714 (6th Cir. 2002) "[C]ourts have found that a taxpayer is negligent if he puts his faith in a "scheme that, on its face, offers improbably high tax advantages, without obtaining an independent opinion on its validity".||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 2002 Barter v. U.S., 550 F.2d 1239 (7th Cir. 1977) Statutory difference in tax rates for married couples and single individuals does not violate due process of law of the Fifth Amendment.||[categories: 'constitution']|[related cases: ]|[date added: 2023-09-02] appellate 1977 Bass v. Hawley, 62 F.2d 721 (5th Cir. 1933) Honorarium gift because no future services promised or provided.||[categories: '61', 'estate and gift taxes', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1933 Batchelor-Robjohns [Estate of] v. U.S. , 788 F.3d 1280 (11th Cir. 2015) "The taxpayer's return of the income must not be the result of the taxpayer's purely voluntary choice; rather, it must be 'established,' for example, by a court, that the taxpayer did not have an unrestricted right to the income. ... [p]ayments made to settle a lawsuit may satisfy this requirement."||[categories: '1341', 'claim of right doctrine']|[related cases: ]|[date added: 2023-09-02] appellate 2015 Bausch [Estate of] v. Commr., 186 F.2d 313 (2d Cir. 1951) Payments made voluntarily by a corporation to decedents' estates upon their deaths in recognition of services to the corporation are income in respect of a decedent.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1951 BB & T Corp. v. U.S. , 523 F.3d 461 (4th Cir. 2008) The Commissioner was "entitled to recognize [the transaction] for what it was, not what [the taxpayer] professed it to be".||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 2008 Beals [Estate of] v. Commr., 82 F.2d 268 (2d Cir. 1936) Stock transferred in exchange for a taxpayer's agreement not to compete was income to the taxpayer, and not merely "ancillary" to a larger reorganization plan.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1936 Beam v. IRS, 192 F.3d 941 (9th Cir. 1999) Although "specific statutes normally trump conflicting, general statutes", appellants' argument relying on that general principle "ignores the specifically stated intent of Congress".||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] appellate 1999 Bean [Estate of] v. Commr., 268 F.3d 553 (8th Cir. 2001) "A mere guaranty of a corporate loan is insufficient" to create basis.||[categories: 'basis', 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 2001 Bean [Estate of] v. Commr., 268 F.3d 553 (8th Cir. 2001) "[O]nce chosen, the taxpayers are bound by the consequences of the transaction as structured, even if hindsight reveals a more favorable tax treatment."||[categories: 'other']|[related cases: Higgins v. Smith, National Alfalfa Dehydrating & Milling [Commr. v.]]|[date added: 2023-09-02] appellate 2001 Beltzer v. U.S., 495 F.2d 211 (8th Cir. 1974) Applyi​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​ng a duty of consistency where the taxpayer's mistake is "innocent or otherwise".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Benson v. Commr., 560 F.3d 1133 (9th Cir. 2009) An economic benefit is a constructive dividend when the corporation provides it to a shareholder "with no expectation of reimbursement".||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] appellate 2009 Bernstein [U.S. v.], 179 F.2d 105 (4th Cir. 1949) Finding officers not to be employees where "[w]hat little services they performed were of a minor or nominal nature having no material bearing or effect upon the functioning of the corporation in the conduct of its business".||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] appellate 1949 Bessenyey v. Commr., 379 F.2d 252 (2d Cir. 1967) Raising Hungarian half-breds held not to be an activity for profit.||[categories: 'other', 'profit motive']|[related cases: ]|[date added: 2023-09-02] appellate 1967 Bisbee-Baldwin Corp. v. Tomlinson, 320 F.2d 929 (5th Cir. 1963) Treating consideration for mortgage servicing contracts as a substitute for commissions.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1963 Blodgett v. Commr., 394 F.3d 1030 (8th Cir. 2005) Where both parties have satisfied their burden of production, the party supported by the weight of the evidence will prevail regardless of which party had the burden of persuasion, proof, or preponderance. "A shift in the burden of preponderance has real significance only in the rare event of an evidentiary tie."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 2005 BOCA Investerings Partnership v. U.S., 314 F.3d 625 (D.C. Cir. 2003) Purported partners could have avoided millions of dollars in transaction costs by purchasing notes directly instead of creating an elaborate structure.||[categories: 'economic substance', 'partnerships']|[related cases: ]|[date added: 2023-09-02] appellate 2003 Boeing [Commr. v.], 106 F.2d 305 (9th Cir. 1939) "[O]ne may conduct a business through others, his agents, representatives, or employees."||[categories: 'agency', 'trade or business']|[related cases: ]|[date added: 2023-09-02] appellate 1939 Bogley v. Commr., 263 F.2d 746 (4th Cir. 1959) The taxpayers' sale of 10 acres of unimproved land, less than a year after the sale of the dwelling unit and surrounding 3 acres from the original 13-acre parcel, qualified as a sale of the taxpayers' principal residence.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1959 Bolaris v. Commr., 776 F.2d 1428 (9th Cir. 1985) A rental for less than fair market value will most likely not qualify as property being held for the production of income.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1985 Bowling v. U.S., 510 F.2d 112 (5th Cir. 1975) No compromise was implied by "the government's acceptance and cashing" of the taxpayer's check.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1975 Bradford v. Commr., 796 F.2d 303 (9th Cir. 1986) The failure to report income, maintain adequate records, and cooperate with the Commissioner are "badges of fraud" from which fraudulent intent may be inferred.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Bradley v. U.S., 730 F.2d 718 (11th Cir. 1984) Affirming a district court holding that payments received were interest income pursuant to a sale rather than an option to purchase because the contract called for interest payments.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Bradley v. U.S., 817 F.2d 1400 (9th Cir. 1987) "[A] tax provision which imposes a penalty is to be construed strictly; a penalty cannot be assessed unless the words of the provision plainly impose it."||[categories: 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Bramblett v. Commr., 960 F.2d 526 (5th Cir. 1992) Rejecting argument that activities of corporation in selling and developing land should be attributed to partnership whose partners held ownership interests in the corporation.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1992 Brountas v. Commr., 692 F.2d 152 (1st Cir. 1982) "[I]f [the contingency] does not occur, the obligations need never enter basis, for they do not represent any obligation to pay. if it does occur, the extent of the monetary obligation will be reasonably capable of calculation, and any change in basis * * * can then be determined".||[categories: 'basis']|[related cases: ]|[date added: 2023-09-02] appellate 1982 Brown v. U.S., 329 F.3d 664 (9th Cir. 2003) Courts have "readily ignored the role of the intermediary" where "a party acts as a 'mere conduit' of funds-a fleeting stop in a predetermined voyage toward a particular result".||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 2003 Brutsche v. Commr., 585 F.2d 436 (10th Cir. 1978) Shareholders were not individually liable for deficiency because Form 2553 did not comply with the requirements for S corporation status.||[categories: '1361', 'S corporations', 'corporations', 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1978 Buchanan v. U.S., 87 F.3d 197 (7th Cir. 1996) A debt is not worthless merely because the debtor is insolvent.||[categories: '165', 'loan/debt', 'losses']|[related cases: ]|[date added: 2023-09-02] appellate 1996 Burdett [U.S. v.], 962 F.2d 228 (2d Cir. 1992) The taxpayer's purported views of the income tax had been rejected so often that someone who had conducted research could not sincerely believe that those views were correct.||[categories: 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1992 Burnett v. Commr., 356 F.2d 755 (5th Cir. 1966) "Petitioner's expenditures constituted advances to his clients which were virtually certain to be repaid and, consequently, were not deductible as business expenses."||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] appellate 1966 Bursten v. U.S., 395 F.2d 976 (5th Cir. 1968) "[W]e must note here, as a matter of judicial knowledge, most lawyers have only scant knowledge of the tax laws."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1968 C.F. Mueller Co. v. Commr., 479 F.2d 678 (3d Cir. 1973) "[A] taxpayer who is a shareholder has been held to have received a constructive dividend when he receives an economic benefit through a diversion of corporate earnings and profits".||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] appellate 1973 Cannon v. Commr., 949 F.2d 345 (10th Cir. 1991) A record of substantial losses over many years and the unlikelihood of achieving a profitable operation are important factors bearing on a taxpayer's intention.||[categories: 'other', 'profit motive']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Cannon v. Commr., 533 F.2d 959 (5th Cir. 1976) Approving the Commissioner's assertion of deficiencies based upon an equal division of gambling proceeds between two gamblers when the contradictory testimony of each was unworthy of belief.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1976 Cannon v. Commr. , 949 F.2d 345 (10th Cir. 1991) Concluding that an eleven-year period of substantial losses constituted "persuasive evidence" that the taxpayer had no profit motive.||[categories: 'other', 'profit motive']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Capital One Financial Corp. v. Commr., 659 F.3d 316 (4th Cir. 2011) "[T]reatment of a material item consistently in two or more consecutively filed tax returns constitutes a method of accounting for which consent is required to change--even if that treatment is erroneous or an incorrect application of a chosen method."||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] appellate 2011 Carlson v. U.S., 754 F.3d 1223 (11th Cir. 2014) Section 6701 requires proof of fraud by the tax return preparer, and thus the government was required to prove the preparer's liability by clear and convincing evidence.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 2014 Carrington v. Commr., 476 F.2d 704 (5th Cir. 1973) Holding, in an income tax case, that where respondent seeks to use the step transaction doctrine to disregard a donation of appreciated property to a charitable organization, the central inquiry is whether the donor parted with all dominion and control.||[categories: '170', 'charitable contributions', 'substance over form']|[related cases: Palmer v. Commr.]|[date added: 2023-09-02] appellate 1973 Carroll v. Commr., 71 F.3d 1228 (6th Cir. 1995) "[A] taxpayer that sends a document to the IRS by regular mail, as opposed to registered or certified mail, does so at his peril".||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1995 Carter v. Commr., 784 F.2d 1006 (9th Cir. 1986) Rejecting taxpayer's argument that the income tax is voluntary.||[categories: 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Caruth Corp. v. U.S., 865 F.2d 644 (5th Cir. 1989) One who earns income cannot escape tax upon the income by assigning it to another.||[categories: '61', 'assignment of income', 'gross income', 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1989 Catalano v. Commr., 240 F.3d 842 (9th Cir. 2001) The reasonable reliance defense requires that the taxpayer establish the professional qualifications of a purported expert and the nature of the advice that was purportedly given.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 2001 Central Texas Savings & Loan Assn. v. U.S., 731 F.2d 1181 (5 Cir. 1984) "While the period of the benefits may not be controlling in all cases, it nonetheless remains a prominent, if not predominant, characteristic of a capital item). Indeed, the text of the Code's capitalization provision, §263(a)(1), which refers to "permanent improvements or betterments," itself envisions an inquiry into the duration and extent of the benefits realized by the taxpayer.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Champion v. Commr., 303 F.2d 887 (5th Cir. 1962) "[T]here is no distinction, for most purposes * * * in the meaning of fair market value as used in an estate tax case and one involving income tax."||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 1962 Charles Schneider & Co. v. Commr., 500 F.2d 148 (8th Cir. 1974) "Where the corporation is controlled by the very employees to whom the compensation is paid, special scrutiny must be given to such salaries, for there is a lack of arm's length bargaining[.]"||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Christopher Cross Inc. v. U.S., 461 F.3d 610 (5th Cir. 2006) Finding no abuse of discretion when [IRS settlement officer] rejected offer in compromise because taxpayer was not in compliance with its tax payment obligations.||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2006 Church of Scientology v. Commr., 823 F.2d 1310 (9th Cir. 1987) "[T]he payments [of royalties for literary works] in this case, cross the line between reasonable and excessive".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Clardy [U.S. v.], 612 F.2d 1139 (9th Cir. 1980) "[I]t is undisputed that if a new note is given to satisfy an interest obligation by a debtor on a cash basis, the interest has not been 'paid.'"||[categories: '163', 'interest expense', 'timing']|[related cases: ]|[date added: 2023-09-02] appellate 1980 Clark [U.S. v.], 358 F.2d 892 (1st Cir. 1966) Taxpayer not engaged in a "trade or business" in part because no evidence he received compensation "different from that flowing to an investor".||[categories: 'trade or business']|[related cases: ]|[date added: 2023-09-02] appellate 1966 Clines [U.S. v.], 958 F.2d 578 (4th Cir. 1992) Defendant held "other authority" where defendant had "actual control of the funds," despite ownership structure.||[categories: 'FBAR', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1992 Cohan v. Commr., 39 F.2d 540 (2d Cir. 1930) Under certain circumstances, when taxpayers establish that they incurred a trade or business expense but do not substantiate the amount of the expense, the court may estimate the amount of the deductible expense.||[categories: '162', 'business expenses']|[related cases: Sanford v. Commr., Vanicek v. Commr., Lerch v. Commr., Lewis v. Commr.]|[date added: 2023-09-02] appellate 1930 Cohen v. U.S., 297 F.2d 760 (9th Cir. 1962) Taxpayer's failure to file petition within 90 days of deficiency notice's mailing did not foreclose a potential refund suit.||[categories: 'deficiency', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1962 Cohn v. U.S., 259 F.2d 371 (6th Cir. 1958) Upon redetermination of the useful life, depreciation is not modified for prior years, but the remaining depreciated cost is spread ratably over the new estimated remaining useful life and depreciation deductions taken accordingly for the current and succeeding years.||[categories: '167', 'depreciation']|[related cases: ]|[date added: 2023-09-02] appellate 1958 Coleman v. Commr., 791 F.2d 68 (7th Cir. 1986) Imposing penalties on taxpayers who made frivolous constitutional arguments in opposition to the income tax.||[categories: 'constitution', 'frivolous', 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Collins v. Commr., 3 F.3d 625 (2d Cir. 1993) Section 165(d) "only allows gambling losses to offset gambling winnings".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Coloman v. Commr., 540 F.2d 427 (9th Cir. 1976) Establishing basis is a question of fact that must be established by the taxpayer.||[categories: 'basis']|[related cases: ]|[date added: 2023-09-02] appellate 1976 Compaq Computer Corp. v. Commr., 277 F.3d 778 (5th Cir. 2001) Whether a transaction has economic substance or a business purpose is a "legal conclusion" subject to de novo review.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2001 Compaq v. Commr., 277 F.3d 778 (5th Cir. 2001) Declining, in an income tax case, to disregard a transaction that involved even a minimal amount of risk and was conducted by entities separate and apart from the taxpayer.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2001 Conaway [U.S. v.], 11 F.3d 40 (5th Cir. 1993) "[T]he evidence of bank deposits suffices to raise the inference that the taxpayer's income came from a taxable source".||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Conley [U.S. v.], 826 F.2d 551 (7th Cir. 1987) Taxpay​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​er filed timely and accurate returns reporting tax due but concealed his assets to evade payment.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Conn Bk. & Tr. Co. v. U.S., 465 F.2d 760 (2d Cir. 1972) Property interest arising after the decedent's death is not property owned at death and not part of the gross estate under section 2033.||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] appellate 1972 Connor v. Commr., 218 F.3d 733 (7th Cir. 2000) "[T]he purpose of the passive activity loss regulations * * * is to assess accurately whether a taxpayer is involved in the active management of a trade or business in such a fashion that passive activity treatment would be inaccurate".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2000 Connor v. Commr., 770 F.2d 17(2d Cir. 1985) The argument that wages are not income "has been rejected so frequently that the very raising of it justifies the imposition of sanctions".||[categories: '61', '3121', 'gross income', 'penalties', 'wages/employees']|[related cases: McNair v. Eggers, Kile v. Commr., Romero [U.S. v.]]|[date added: 2023-09-02] appellate 1985 Continental Ill. Corp. v. Commr., 998 F.2d 513 (7th Cir. 1993) The taxpayer must establish foreign taxes for which it claims credit were not only withheld, but paid.||[categories: '901', 'foreign tax credit', 'international']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Cook v. Commr., 269 F.3d 854 (7th Cir. 2001) "[E]xamples set forth in regulations remain persuasive authority so long as they do not conflict with the regulations themselves".||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 2001 Cook v. Commr., 349 F.3d 850 (5th Cir. 2003) "We think it unreasonable to apply a non-marketability discount when the asset to be valued is the right, independent of market forces, to receive a certain amount of money annually for a certain term."||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 2003 Cooper v. Commr., 877 F.3d 1086 (9th Cir. 2017) "[A] bedrock principle of tax law * * * is that substance controls over form."||[categories: 'substance over form']|[related cases: F. & R. Lazarus & Co. [Helvering v.], Kraut v. Commr., Harbor Bancorp v. Commr.]|[date added: 2023-09-02] appellate 2017 Coplan [U.S. v.], 703 F.3d 46 (2d Cir. 2012) The law of economic substance is "not a model of clarity" and has been inconsistently applied within the circuit, but finding a lack thereof on the ground that a transaction lacks economic substance if it cannot with reason be said to have a purpose, substance, or utility apart from its anticipated tax consequences.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2012 Cowden v. Commr., 289 F.2d 20 (5th Cir. 1961) "[N]egotiability is not the test of taxability in an equivalent of cash case".||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1961 Cracchiola v. Commr., 643 F.2d 1383 (9th Cir. 1981) Stating that the Commissioner's method of reconstructing income is reasonable if it is "rationally based".||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1981 Crain v. Commr., 737 F.2d 1417 (5th Cir. 1984) "[W]e perceive no need to refute these arguments with somber reasoning and copious citation of precedent; to do so might suggest that these arguments have some colorable merit."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Curry v. U.S., 396 F.2d 630 (5th Cir. 1968) It suggests a bona fide debt if a corporation could have borrowed money from an outside lender at the time of an advance.||[categories: '385', 'corporations', 'debt vs. equity', 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1968 Cuyuna Realty Co. v. U.S., 382 F.2d 298 (Ct. Cl. 1967) Reasoning that an advance, though qualifying at the time made as a valid debt for tax purposes, may later lose that status for subsequent taxable years when the purported creditor ceases to act like a reasonable creditor.||[categories: '385', 'corporations', 'debt vs. equity', 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1967 Dallas Nat'L Bank [U.S. v.], 152 F.2d 582 (5th Cir. 1945) "[H]aving been enacted within the scope of the power delegated to the federal government, the Internal Revenue statutes are a part of the supreme law of the land. If they are in conflict with state law * * *, the latter must yield."||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 1945 Dalton v. Commr., 682 F.3d 149 (1st Cir. 2012) A reviewing court considers "whether the factual and legal conclusions reached at a CDP hearing are reasonable, not whether they are correct".||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 2012 D'Ambrosio [Estate of] v. Commr., 101 F.3d 309 (3d Cir. 1996) Describing Wemyss as determining that a "promise of marriage [is] insufficient consideration, for gift tax purposes, for tax-free transfer of property".||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] appellate 1996 Darling v. Commr., 49 F.2d 111 (4th Cir. 1931) Government is not bound by agents acting beyond the scope of their authority.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1931 Datlof v. U.S., 370 F.2d 655 (3d ciri. 1966) "[T]he service need not have attempted to collect from the employer before assessing a responsible person under § 6672".||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1966 Daugherty v. Commr., 63 F.2d 77 (9th Cir. 1933) Attorney who assigned to his wife one-half of his share of a contingency fee is taxable on the full share.||[categories: '61', 'assignment of income', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1933 David v. Commr., 43 F.3d 788 (2d Cir. 1995) Taxpayers' reliance on expert advice not reasonable where expert lacks knowledge of business in which taxpayers invested.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 1995 Davis v. U.S., 961 F.2d 867 (9th Cir. 1992) "[W]hen a taxpayer submits a voluntary payment, she may designate to which liability the money should be applied."||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1992 Day v. Commr., 975 F.2d 534 (8th Cir. 1992) "[T]he Tax Court is not required to give credence to the self-serving testimony of interested parties."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1992 De Bonchamps [U.S. v.], 278 F.2d 127 (9th Cir. 1960) A relationship is generally classified as a trust if it is "clothed with the characteristics of a trust".||[categories: 'corporations', 'entity classification', 'trusts']|[related cases: ]|[date added: 2023-09-02] appellate 1960 De Welles v. U.S., 378 F.2d 37 (9th Cir. 1967) When the taxpayer orally notified the IRS of a new address and the IRS mailed the notice of deficiency to that address the IRS properly sent the notice to the taxpayer's last known address.||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1967 Deamer v. Commr., 752 F.2d 337 (8th Cir. 1985) "[O]ne who has no principal place of business or a permanent residence is considered an itinerant" who "may not deduct expenses under * * * [section 162]".||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] appellate 1985 Demkowicz v. Commr., 551 F.2d 929 (3d Cir. 1977) This court is not bound to accept taxpayer's testimony if it finds it to be either improbable, unreasonable, or questionable.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1977 Denenburg v. U.S., 920 F.2d 301 (5th Cir. 1991) Stating that an audit of a prior tax year was not sufficient to establish reasonable cause for late filing of a subsequent affected year.||[categories: 'annual accounting', 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 1991 DeTar [U.S. v.], 832 F.2d 1110 (9th Cir. 1987) The first two elements of a section 7201 offense are the same as the elements of an offense under section 7203, which criminalizes any willful failure to pay tax.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Dexsil Corp. v. Commr., 147 F.3d 96 (2d Cir. 1998) Applying the multifactor approach through the lens of an independent investor.||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1998 Diebold Inc. v. U.S., 891 F.2d 1579 (Fed. Cir.1989) A change from nondepreciable inventory to depreciable property is a change in method of accounting.||[categories: '167', '446', 'accounting methods', 'depreciation']|[related cases: ]|[date added: 2023-09-02] appellate 1989 Dillin v. U.S., 433 F.2d 1097 (5th Cir. 1970) Employing 11-factor test to determine whether an advance by corporation to shareholder was a loan or a dividend.||[categories: '385', 'corporations', 'debt vs. equity', 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1970 Disabled American Veterans v. Commr., 942 F.2d 309 (6th Cir. 1991) Rejecting reliance on GCMs on the grounds that "[s]uch informal, unpublished opinions of attorneys within the IRS are of no precedential value".||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 1991 DiViaio v. Commr., 539 F.2d 231 (D.C. Cir. 1976) Notice not sent to last known address where Commissioner aware that taxpayer had been incarcerated in Atlanta penitentiary for 2 years and mailed notice to warden there for service on taxpayer.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1976 Dizenzo v. Commr., 348 F.2d 122 (2d Cir. 1965) Burden is on taxpayers to establish corporation did not have sufficient E&P.||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] appellate 1965 DJB Holding Corp. v. Commr., 803 F.3d 1014 (9th Cir. 2015) A purported partner who contributes no value to a joint venture is not a bona fide partner in the venture.||[categories: 'partnerships']|[related cases: ]|[date added: 2023-09-02] appellate 2015 Dolese v. U.S., 605 F.2d 1146 (10th Cir. 1979) Legal expenses of a corporation arising out of a divorce proceeding between the shareholder-owner and his wife were deductible, to the extent that the costs were incurred to resist actions that interfered with the business activities of the corporation.||[categories: '162', 'business expenses', 'corporations']|[related cases: ]|[date added: 2023-09-02] appellate 1979 Dominion Resources Inc. v. U.S., 219 F.3d 359 (4th Cir. 2000) "Revenue rulings are entitled to considerably less deference than an agency's properly promulgated regulations."||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 2000 Don King Productions Inc. v. Thomas, 945 F.2d 529 (2d Cir. 1991) "The assignment of a right to receive income contingent upon the occurrence of a future event . . . does not convey a present interest to the assignee."||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Doneghy v. Alexander, 118 F.2d 521 (10th Cir. 1941) Not reporting interest in a trust as income was a representation that the taxpayer had zero basis in the trust.||[categories: '61', 'basis', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1941 Dosher v. U.S., 730 F.2d 375 (5th Cir. 1984) Holding casualty loss deduction applies only to loss resulting from damage to taxpayer's property and does not include money taxpayer paid to reimburse third parties for damage taxpayer caused to their property.||[categories: '165', 'losses', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Dougherty Co. [P.] v. Commr., 159 F.2d 269 (4th Cir. 1946) For purposes of determining whether depreciation was allowable for years when barges lay idle for protracted periods during a 20-year period, it was sufficient that they were kept in usable condition and were ready for use should the occasion arise.||[categories: '167', 'depreciation']|[related cases: ]|[date added: 2023-09-02] appellate 1946 Drachenberg [U.S. v.], 623 F.3d 122 (2d Cir. 2010) "[A] tax deficiency arises by operation of law on the date a tax return is due but not filed; no formal demand or assessment is required."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 2010 Drake v. Commr., 511 F.3d 65 (1st Cir. 2007) Jeopardy levy was reasonable where the taxpayer transferred sale proceeds to his sons and those proceeds were thereafter held in brokerage accounts in the sons' names.||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2007 Drieborg v. Commr., 225 F.2d 216 (6th Cir. 1955) The Commissioner's proof of fraud for one year will not sustain the Commissioner's burden for another year.||[categories: 'annual accounting', 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1955 Dumanis v. Commr., 182 F.3d 899 (2d Cir. 1999) Affirming the exclusion of documents that taxpayers, pro se litigants, had failed to exchange "at least 15 days before the first day of the trial session" in derogation of Tax Court's pretrial order.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1999 Dunn [Estate of] v. Commr., 301 F.3d 339 (5th Cir. 2002) When valuing a bequest of stock, a hypothetical willing buyer and willing seller must assume that the underlying corporation has been liquidated on the valuation date, even if an actual liquidation is speculative.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 2002 Durovic v. Commr., 542 F.2d 1328 (7th Cir. 1976) Cost of free samples must be capitalized; amortization denied in absence of proof of limited life.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] appellate 1976 Dwyer [Commr. v.], 203 F.2d 522 (2d Cir. 1953) Allowing taxpayers to take inconsistent positions with respect to ending and beginning inventory, i.e., a double deduction for the same expense.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1953 Dye v. U.S., 121 F.3d 1399 (10th Cir. 1997) Expenditures for attorney's fees are not capital expenditures if incurred to secure taxable, ordinary income.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] appellate 1997 Eberls Claim Service Inc. v. Commr., 249 F.3d 994 (10th Cir. 2001) "[O]nl​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​y the Seventh [circuit court of appeals] has gone so far as to jettison the multi-factor approach entirely." [Relying exclusively on the independent investor test in determining reasonable compensation.]||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 2001 Echols v. Commr., 935 F.2d 703 (5th Cir. 1991) Approving ordinary loss treatment for abandonment of partnership interest.||[categories: '165', 'losses']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Echols v. Commr., 950 F.2d 209 (5th Cir. 1991) “Worthlessness and abandonment are separate and distinct concepts and are not, as urged by the Commissioner, simply two sides of the same coin….”||[categories: '165', 'losses']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Edelson v. Commr., 829 F.2d 828 (9th Cir. 1987) "A court should allow * * * [a] taxpayer some deductions if the taxpayer proves he is entitled to the deduction but cannot establish the full amount claimed."||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Edwards v. Commr., 323 F.2d 751 (9th Cir. 1963) Section 31 affords the taxpayer a credit "for tax actually withheld from his wages by his employer".||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] appellate 1963 Edwards v. Commr., 680 F.2d 1268 (9th Cir. 1982) "[R]equiring taxpayers, who institute civil proceedings protesting deficiency notices, to produce records or face dismissal constitutes no invasion of privacy or unlawful search and seizure".||[categories: 'constitution', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1982 Eisenberg v. Commr., 155 F.3d 50 (2d Cir. 1998) Reducing a gift of stock by potential capital gains tax liabilities even though no liquidation or sale of the corporation was planned and finding that potential capital gains tax is not too speculative to be valued because the stock will be subject to capital gains tax on disposition.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 1998 Ellet [U.S. v.], 527 F.3d 38 (2d Cir. 2008) "[T]ax liability ... comes into being as of April 15. A tax deficiency notice ... does not create that liability."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 2008 Enrici v. Commr., 813 F.2d 293 (9th Cir. 1987) Fees "spent for the generation of artificial tax losses" were nondeductible.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Enterprises [F.P.P.] v. U.S., 830 F.2d 114 (8th Cir. 1987) Taxpayer created sham trusts to shelter assets from creditors and fraudulently conveyed assets to those trusts.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Eppler v. Commr., 188 F.2d 95 (7th Cir. 1951) Petition to redetermine a deficiency timely when mailed within 90 days of second notice of deficiency but without 90 days of first notice of deficiency; by sending second notice, Commissioner in effect "withdrew or abandoned" the first notice and, when second notice was mailed, "started a new 90 day period of appeal".||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1951 Esgar Corp. v. Commr., 744 F.3d 648 (10th Cir. 2014) "[R]ulings by the Tax Court on matters of tax law are ... persuasive authority, especially if consistently followed."||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 2014 Ewing [Commr. v.], 439 F.3d 1009 (9th Cir. 2006) No Tax Court jurisdiction when no deficiency involved.||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 2006 Exacto Spring Corp. v. Commr., 196 F.3d 833 (7th Cir. 1999) Applying the "independent investor test" rather than the multiple-factor approach used by the majority of circuits.||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1999 Fargo v. Commr., 447 F.3d 706 (9th Cir. 2006) The IRM does not require the Commissioner to negotiate with a taxpayer.||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 2006 Fargo v. Commr., 447 F.3d 706 (9th Cir. 2006) The IRM does not have force of law, certain provisions are merely advisory in nature, and the IRM gives IRS appeals officers considerable discretion to accept or reject offers-in-compromise.||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 2006 Farid-Es-Sultaneh v. Commr., 160 F.2d 812 (2d Cir. 1947) Title to stock was acquired by purchase and not by gift when shares were received in consideration of promise to marry coupled with promise to relinquish marital rights to fiance's property.||[categories: '61', 'estate and gift taxes', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1947 Faroll v. Jarecki, 231 F.2d 281 (7th Cir. 1956) Taxpayer who traded futures contracts on the floor of the CBT on his own behalf did not sell the contracts to customers.||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] appellate 1956 Fathauer v. U.S., 566 F.3d 1352 (Fed. Cir.2009) Ruling that the term "employee," when defined by statute in a circular manner, "was intended to be given its ordinary meaning"||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] appellate 2009 Faulconer v. Commr., 748 F.2d 890 (4th Cir. 1984) "[A] taxpayer's mere statement of intent is given less weight than objective facts."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Feldman v. Commr., 779 F.3d 448 (7th Cir. 2015) Affirming the Tax Court's finding that a loan to purchase the shares of the target corporation was a sham in part because "the loan was entirely undocumented; there was no promissory note or writing setting forth the terms of the loan".||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 2015 Ferguson v. Commr., 174 F.3d 997 (9th Cir. 1999) Citing inexperience of a partnership's promoters in the relevant business as one indicator of lack of economic substance in the partnership.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1999 Ficalora v. Commr., 751 F.2d 85 (2d Cir. 1984) An unapportioned income tax on wages is constitutional.||[categories: '3121', 'constitution', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Fin Hay Realty Co. v. U.S., 398 F.2d 694 (3d Cir. 1968) An advance may not be a bona fide loan if an outside lender would not have advanced funds on the same terms as did the corporate insider.||[categories: '385', 'corporations', 'debt vs. equity', 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1968 First Mechanics Bank v. Commr., 91 F.2d 275 (3d Cir. 1937) A partner's share of partnership income was taxable to him for the year in which the income was realized by the partnership even though not distributed to the partner in that year.||[categories: 'partnerships']|[related cases: Basye [U.S. v.], Mellon [Heiner v.]]|[date added: 2023-09-02] appellate 1937 First Nat. Bk. of Kenosha Bank v. U.S., 763 F.2d 891 (7th Cir. 1985) "[S]ubsequent events are not considered in fixing fair market value, except to the extent that they were reasonably foreseeable at the date of valuation".||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 1985 Fitts [Estate of] v. Commr., 237 F.2d 729 (8th Cir. 1956) Actual sales are determinative when they are within a reasonable time before or after the valuation date.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 1956 Freese v. U.S., 455 F.2d 1146 (10th Cir. 1972) A settlement payment was a substitute for the taxpayer's services as an employee.||[categories: 'other', 'settlement payments']|[related cases: Lyeth v. Hoey]|[date added: 2023-09-02] appellate 1972 General Artists Corp. v. Commr., 205 F.2d 360 (2 Cir. 1953) Holding amounts received by a booking agent for cancellation of a contract to be the exclusive agent of a singer was not a sale or exchange.||[categories: '1001', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] appellate 1953 Gilman v. Commr., 933 F.2d 143 (2d Cir. 1991) "[T]he lack of economic substance was due in part to the overvaluation, and thus the underpayment was attributable to the valuation overstatement."||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Harbor Bancorp v. Commr., 115 F.3d 722 (9th Cir. 1997) "[I]t is axiomatic that tax law follows substance and not form."||[categories: 'substance over form']|[related cases: F. & R. Lazarus & Co. [Helvering v.], Kraut v. Commr., Cooper v. Commr.]|[date added: 2023-09-02] appellate 1997 Hudspeth v. U.S., 471 F.2d 275 (8th Cir. 1972) Finding an assignment of income where stock was donated after shareholders had voted and taken steps to liquidate the corporation.||[categories: '61', 'assignment of income', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1972 IBM Corp. v. U.S., 343 F.2d 914 (Ct. Cl. 1965) As a general rule, a taxpayer "can never avoid liability for a proper tax by showing that others have been treated generously, leniently, or erroneously by the Internal Revenue Service".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1965 Illes v. Commr., 982 F.2d 163 (6th Cir. 1992) "[I]f the transaction lacks economic substance, then the deduction must be disallowed without regard to the 'niceties' of the taxpayer's intent".||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1992 Jade Trading LLC v. U.S., 598 F.3d 1372 (Fed. Cir.2010) A transaction lacks economic substance if it provides a disproportionate tax benefit compared to the amount invested and the potential return.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2010 Kirchman v. Commr., 862 F.2d 1486 (11th Cir. 1989) If a transaction lacks economic substance, "then expenses or losses incurred in connection with the transaction are not deductible."||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1989 Klamath Strategic Investment Fund v. U.S., 568 F.3d 537 (5th Cir. 2009) "[T]he economic substance doctrine allows courts to enforce the legislative purpose of the [tax] code by preventing taxpayers from reaping tax benefits from transactions lacking in economic reality."||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2009 Kraft Foods Co. v. Commr., 232 F.2d 118 (2d Cir. 1956) Suggesting that an "unconditional obligation" to pay interest and principal are "necessary features of instruments of indebtedness". "[S]ubordination to general creditors is not necessarily indicative of a stock interest. Debt is still debt despite subordination."||[categories: '385', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] appellate 1956 Kraft Foods Co. v. Commr., 232 F.2d 118 (2d Cir. 1956) An arrangement is subject to "close scrutiny by the Commissioner" where it is "made between a parent corporation and its wholly-owned subsidiary".||[categories: 'corporations']|[related cases: ]|[date added: 2023-09-02] appellate 1956 Madison Gas & Elec. Co. v. Commr., 633 F.2d 512 (7th Cir. 1980) Expenses were characterized as "pre-operational costs" of the partnership even though the general partner was already in the same business.||[categories: '162', 'business expenses', 'partnerships']|[related cases: ]|[date added: 2023-09-02] appellate 1980 Maginnis [U.S. v.], 356 F.3d 1179 (9th Cir. 2004) The amount that the taxpayer received in exchange for the taxpayer's assignment to a third party of his right to receive certain future annual lottery payments is ordinary income under the "substitute for ordinary income" doctrine.||[categories: '61', 'assignment of income', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 2004 Metro Leasing and Development Corp. v. Commr., 376 F.3d 1015 (9th Cir. 2004) The fact that a hypothetical inactive independent investor would pay an employee compensation equal to an amount in dispute is not decisive in and of itself.||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 2004 Miami Beach Bay Shore Co. v. Commr., 136 F.2d 408 (5th Cir. 1943) Stock is not worthless until the "last" vestige of value has disappeared".||[categories: '165', 'losses', 'worthless securities']|[related cases: White Dental Mfg. Co. [U.S. v.], Furer v. Commr.]|[date added: 2023-09-02] appellate 1943 Nat.-Standard Co. v. Commr., 749 F.2d 369 (6th Cir. 1984) Holding transfer of foreign currency to discharge the taxpayer's liability was not a "sale or exchange" of that currency, and loss on transfer was an ordinary loss.||[categories: '1001', 'international', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Nicole Rose Corp. v. Commr., 320 F.3d 282 (2d Cir. 2003) "[W]hether a transaction lacks economic substance is a question of fact that we review under the clearly erroneous standard."||[categories: 'economic substance', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 2003 North American Rayon Corp. v. Commr., 12 F.3d 583 (6th Cir. 1993) "[T]he Danielson rule does not apply if there is no contract between the parties or if the contract is ambiguous".||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1993 O'Connor v. Commr., 412 F.2d 304 (2d Cir. 1969) Background of experience, knowledge, and ability acquired as a certified public accountant relevant in light of wealth of other evidence that demonstrated taxpayer's bad faith with intent to defraud.||[categories: 'criminal/fraud', 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1969 Ogden v. Commr., 788 F.2d 252 (5th Cir. 1986) "Setting forth the necessity of capital accounts in order for the distributive share allocation to have substantial economic effect".||[categories: '704(b)', 'partnerships']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Olsen v. Helvering, 88 F.2d 650 (2d Cir. 1937) "The notice is only to advise the person who is to pay the deficiency that the Commissioner means to assess him; anything that does this unequivocally is good enough."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1937 Oswego Falls Corp. [Commr. v.], 71 F.2d 673 (2d Cir. 1934) An unsigned notice of deficiency was valid and stating that "[t]he statute does not require that it be signed".||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1934 Owensby & Kritikos Inc. v. Commr., 819 F.2d 1315 (5th Cir. 1987) "Limit​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​s to reasonable compensation exist even for the most valuable employees."||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Palmer v. U.S., 116 F.3d 1309 (9th Cir. 1997) "[T]he Commissioner's deficiency determinations and assessments for unpaid taxes are normally entitled to a presumption of correctness so long as they are supported by a minimal factual foundation."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1997 Pantages Theatre Co. v. Welch, 71 F.2d 68 (9th Cir. 1934) Corporation could not deduct legal expenses paid to defend its president and majority shareholder in defense of charges that he raped a prospective client of the corporation.||[categories: '162', 'business expenses', 'corporations']|[related cases: DuPont [Deputy v.], Welch v. Helvering, Lohrke v. Commr.]|[date added: 2023-09-02] appellate 1934 Pettibone Corp. v. U.S., 34 F.3d 536 (7th Cir. 1994) "[T]he Internal Revenue Code leaves to the Commissioner's discretion whether to apply overpayments to delinquencies or to refund them to the taxpayer."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1994 Phoenix Coal Co. v. Commr., 231 F.2d 420 (2d Cir. 1956) Determining that the availability of a net operating loss carryover depends on the correct liability for a barred year.||[categories: '172', 'NOLs']|[related cases: ]|[date added: 2023-09-02] appellate 1956 Portillo v. Commr., 932 F.2d 1128 (5th Cir. 1991) "[T]he Tax Court only has jurisdiction when the Commissioner issues a valid deficiency notice and the taxpayer files a timely petition for redetermination".||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Portland Oil Co. v. Commr., 109 F.2d 479 (1st Cir. 1940) Not reporting a sale in 1929 was a representation that the sale did not occur in 1929.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1940 Powell v. Commr., 958 F.2d 53 (4th Cir. 1992) "[W]hen notice of a deficiency is not sent to a taxpayer's last known address, subsequent actual notice of the deficiency will commence the running of the ninety-day period."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1992 Raheja v. Commr., 725 F.2d 64 (7th Cir. 1984) Tax court doesn't generally look behind the notice of deficiency to examine the Commissioner's motive or procedure; "[t]he rationale for this rule is that the Tax Court proceeding is de novo".||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Reddam v. Commr., 755 F.3d 1051 (9th Cir. 2014) Stating that "the economic substance doctrine is not a rigid two-step analysis, but instead focuses holistically on whether the transaction had any practical economic effects" other than creation of tax benefits.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2014 Rice's Toyota World Inc. v. Commr., 752 F.2d 89 (4th Cir. 1985) "[T]he second prong of the sham inquiry, the economic substance inquiry, requires an objective determination of whether a reasonable possibility of profit from the transaction existed apart from tax benefits."||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1985 Roat v. Commr., 847 F.2d 1379 (9th Cir. 1988) "[D]eficiency procedures set out in the Internal Revenue Code * * * do not require the Commissioner to prepare a return on a taxpayer's behalf before determining and issuing a notice of deficiency."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1988 Sanderling Inc. v. Commr., 571 F.2d 174 (3d Cir. 1978) "[A] notice of a deficiency, even if it contains error, may nonetheless be valid where the taxpayer has not been misled as to the proper year involved or the amounts in controversy".||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1978 Sansome [ Commr. v.], 60 F. 2d 931 (2d Cir. 1932) A reorganization may not be used to erase accumulated earnings so as to permit tax-free a distribution which would have been, but for such reorganization, a dividend.||[categories: '301', '312', 'E&P', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] appellate 1932 Scar v. Commr., 814 F.2d 1363 (9th Cir. 1987) A notice of deficiency was invalid where the Commissioner did not examine the taxpayer's return and the notice of deficiency referred to a transaction that was unrelated to the taxpayer.||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Sheldon Co. [E.H.] v. Commr., 214 F.2d 655 (6th Cir. 1954) Expenditures to produce sales catalog likely to be used for several years deductible business expense.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] appellate 1954 Sicker v. Commr., 815 F.2d 1400 (11th Cir. 1987) The court of appeals held that receipt of a notice of deficiency with 8 days remaining in the filing period was not ample time in which to prepare a petition.||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Singer Co. v. U.S., 449 F.2d 413 (Ct. Cl. 1971) A sewing machine manufacturer was not entitled to a charitable contribution deduction for the sale of sewing machines to public schools at a discount because the manufacturer gave the schools a discount with the expectation that the students' use would result in an increase in future sales.||[categories: '170', 'charitable contributions']|[related cases: ]|[date added: 2023-09-02] appellate 1971 Spokane Dry Goods Co. v. Commr., 125 F.2d 865 (9th Cir. 1942) The court was constrained "by the rule against interpretations which allow a double deduction".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1942 Stoecklin v. Commr., 865 F.2d 1221 (11th Cir. 1989) A notice is valid if it demonstrates that the IRS determined a deficiency for a particular year and specifies the amount.||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1989 Tavano v. Commr., 986 F.2d 1389 (11th Cir. 1993) An unsigned notice of deficiency received by the taxpayer was valid because it "adequately advised him that the Commissioner intended to assess him, notwithstanding that the notice was unsigned".||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Tax Analysts v. IRS, 117 F.3d 607 (D.C. Cir. 1997) Determinations labeled "Field Service Advice" are analogous to technical advice memoranda and thus subject to section 6110 disclosure.||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 1997 Texas Farm Bureau v. U.S., 725 F.2d 307 (5th Cir. 1984) Acknowledging the "lender/shareholder's dual interest in the corporation" when shareholders provided money to a closely held corporation.||[categories: 'corporations']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Texas Farm Bureau v. U.S., 53 F.3d 120 (5th Cir. 1995) Distinguishing royalty payments from payments for personal services.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1995 TIFD III-E Inc. v. U.S., 459 F.3d 220 (2d Cir. 2006) Transaction having economic substance can nevertheless belie economic reality when considered in light of totality of circumstances.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2006 U.S. Life Title Ins. Co of Dallas v. Harbison, 784 F.2d 1238 (5th Cir. 1986) "As a matter of policy, * * * [the government] does not retain payments exceeding the underlying withholding tax delinquency."||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1986 U.S. Life Title Ins. Co of Dallas v. Harbison, 784 F.2d 1238 (5th Cir. 1986) "The fact that more than one person is responsible for a particular delinquency does not relieve another responsible person of her personal liability, nor can a responsible person avoid collection against herself on the ground that the government should first collect the tax from someone else."||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1986 U.S. Steel Corp. v. Commr., 617 F.2d 942 (2d Cir. 1980) The "'arm's length' standard is * * * meant to be an objective standard that does not depend on the absence or presence of any intent on the part of the taxpayer to distort his income."||[categories: '482', 'international', 'transfer pricing']|[related cases: ]|[date added: 2023-09-02] appellate 1980 U.S. v. Cocke, 399 F.2d 433 (5th Cir. 1968) Describing the "general tax principle, that deductions for expenses can be taken only by the party who actually 'paid or incurred' them".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1968 Union Mutual Life Ins. Co. v. U.S., 570 F.2d 382 (1st Cir. 1978) "[E]xpenditures made with the contemplation that they will result in the creation of a capital asset cannot be deducted" even though those expenditures were found to be regularly occurring and did not actually result in the acquisition of an asset.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] appellate 1978 Union Trust Co. v. U.S., 70 F.2d 629 (2d Cir. 1934) "[T]he entire tax liability is unitary and not discharged until paid in full".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1934 Weimerskirch v. Commr., 596 F.2d 358 (9th Cir. 1979) "[T]he Commissioner must offer some foundational support for the deficiency determination before the presumption of correctness attaches to it".||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1979 Wiley v. U.S., 20 F.3d 222 (6th Cir. 1994) "[F]orm 3877 is highly probative evidence that the notice of deficiency was sent by certified mail, and in the absence of contrary evidence is sufficient to establish that fact."||[categories: 'deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 1994 Tomlinson v. 1661 Corp., 377 F.2d 291 (5th Cir. 1967) Stating that subordination of what was "claimed" to be a loan to other creditors may evidence instead a contribution to capital.||[categories: '385', 'corporations', 'debt vs. equity', 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1967 Wentworth v. Commr., 244 F.2d 874 (9th Cir. 1957) Not reporting the receipt of funds on an income tax return was a representation that the funds were a loan repayment.||[categories: 'loan/debt', 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1957 Frierdich v. Commr., 925 F.2d 180 (7th Cir. 1991) Treating a taxpayer's explanation of the existence of a loan as plausible but insufficient to establish a bona fide debt.||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Gilbert v. Commr., 262 F.2d 512 (2d Cir. 1957) "The determination [of] whether the funds advanced are to be regarded as a 'capital contribution' or 'loan' must be made in the light of all the facts of the particular case."||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1957 Hardman v. U.S., 827 F.2d 1409 (9th Cir. 1987) Formal loan documentation tends to show bonafide debt.||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Karns Prime & Fancy Food Ltd. v. Commr., 494 F.3d 404 (3d Cir. 2007) "[T]o determine whether a given transaction constitutes a loan, the substance, rather than the form, of the transaction is controlling."||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 2007 Noble v. Commr., 368 F.2d 439 (9th Cir. 1966) Shareholders' alteration of corporate records 2 years after payment was not sufficient to properly characterize payments as loan repayments.||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1966 Rogers v. U.S., 281 F.3d 1108 (10th Cir. 2002) Recharacterizing a secured loan that had no likelihood of ever being repaid as a sale.||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 2002 Texas Farm Bureau v. U.S., 725 F.2d 307 (5th Cir. 1984) Employing 13-factor test to determine whether advance by shareholder to his corporation was a loan or a capital contribution.||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Flandreau [Estate of] v. Commr., 994 F.2d 91 (2d Cir. 1993) There must be a real expectation of repayment and an intent to enforce collection at the time of the debt transaction.||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Floyd v. Scofield, 193 F.2d 594 (5th Cir. 1952) Agreeing that a corporation was the owner of income from product sales because, inter alia, checks were made payable to and delivered to the corporation, and it had the choice either to collect the funds itself or to direct the payment thereof to its shareholders.||[categories: '61', 'corporations', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1952 Folkman v. U.S., 615 F.2d 493 (9th Cir. 1980) Applying the Markey test and concluding that the taxpayer's tax home was the location where he spent more working time and derived most of his income.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] appellate 1980 Folkman v. U.S., 615 F.2d 493 (9th Cir. 1980) The tax home for airline pilots having dual employers and places of employment was the city of the airline's duty base.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] appellate 1980 Ford v. U.S., 276 F.2d 17 (Cl. Ct. 1960) Refusing to require heirs to use as the basis in inherited stock the valuation selected by the executor where the heirs were minors who resided in Brazil and had no relevant knowledge.||[categories: 'basis', 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] appellate 1960 Foxman v. Renison, 625 F.2d 429 (2d Cir. 1980) IRS audit of taxpayer's returns for 4 consecutive years was not an unlawful selective audit.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1980 Frank v. D'Ambrosi, 4 F.3d 1378 (6th Cir. 1993) "[T]he IRS is not required to collect delinquent employment taxes from corporate assets before proceeding against corporate officials".||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Franklin [Estate of] v. Commr., 544 F.2d 1045 (9th Cir. 1976) Nonrecourse debt used to acquire property was not true indebtedness to the extent it exceeded the property's fair market value.||[categories: 'basis', 'loan/debt']|[related cases: Tufts [Commr. v.]]|[date added: 2023-09-02] appellate 1976 Frederick v. U.S., 603 F.2d 1292 (8th Cir. 1979) Commut​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​ing expenses to a temporary worksite "a considerable distance" from-the taxpayer's residence were deductible.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] appellate 1979 Freihofer [Commr. v.], 102 F.2d 787 (3d Cir. 1939) "[To constitute a sale] [t]here must be parties standing to each other in the relation of buyer and seller, their minds must assent to the same proposition, and a consideration must pass."||[categories: '1001', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] appellate 1939 Furer v. Commr., 33 F.3d 58 (9th Cir. 1994) Loss suffered by taxpayers through a decline in the value of their stock due to a fluctuating market did not constitute a casualty loss.||[categories: '165', 'losses']|[related cases: White Dental Mfg. Co. [U.S. v.], Miami Beach Bay Shore Co. v. Commr.]|[date added: 2023-09-02] appellate 1994 Garner v. Commr., 987 F.2d 267 (5th Cir. 1993) Upholding conclusion that shareholder-employee's motive was to protect his investment and not his salary, which was zero.||[categories: '166', 'bad debt expense']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Gatling v. Commr., 286 F.2d 139 (4th Cir. 1961) "Proof of consistent and substantial understatements of income over a period of years may constitute persuasive and convincing evidence of fraud."||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1961 Geftman v. Commr., 154 F.3d 61 (3d Cir. 1998) Requiring "objective indicia of an obligation" to support the existence of indebtedness between related parties.||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1998 Geiger v. Commr., 352 F.2d 221 (8th cir 1965) Gifts of embezzled funds evidenced sufficient control to establish an accession to wealth and taxable income to the embezzling donor.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1965 Genser [U.S. v.], 582 F.2d 292 (3d Cir. 1978) Statements made by counsel in their briefs are not evidence.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1978 Gill v. U.S., 258 F.2d 553 (5th Cir. 1958) A sole proprietorship adopts the taxable year of its owner.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1958 Glaze v. U.S., 641 F.2d 339 (5th Cir. 1981) An erroneously filed single return is not a "separate return".||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1981 Goldberg v. Commr., 223 F.2d 709 (5th Cir. 1955) Frequency of sales alone is not sufficient to establish a taxpayer is engaged in selling assets as a business.||[categories: 'trade or business']|[related cases: ]|[date added: 2023-09-02] appellate 1955 Goldstein v. Commr., 364 F.2d 734 (2d Cir. 1966) Affirming disallowance of interest deductions where debt was incurred solely for its anticipated tax consequences.||[categories: '163', 'interest expense', 'loan/debt', 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1966 Gray v. Commr., 708 F.2d 243 (6th Cir. 1983) "[A] guilty plea is as much a conviction as a conviction following jury trial."||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1983 Green v. U.S., 460 F.2d 412 (5th Cir. 1972) Taxpayer who owned merely 7.9 percent of corporation's stock exercised sufficient control for constructive dividend to be attributed to her.||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] appellate 1972 Greene v. U.S., 79 F.3d 1348 (2d Cir. 1996) Donation of regulated futures contract to charity is a recognition event.||[categories: '61', '170', 'charitable contributions', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1996 Griswold v. U.S., 59 F.3d 1571 (11th Cir. 1995) "[W]hile the IRS manual does not have the force of law, * * * the manual provisions do constitute persuasive authority as to the IRS's interpretation of the statute and the regulations."||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 1995 Grove v. Commr., 490 F.2d 241 (2d Cir. 1973) Rejecting the Commissioner's argument for applying the step transaction doctrine because "[w]ere we to adopt the Commissioner's view, we would be required to recast two actual transactions * * * into two completely fictional transactions".||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1973 Grove v. Commr., 490 F.2d 241 (2d Cir. 1973) Observing that step-transaction doctrine applies to "meaningless intervening steps in a single, integrated transaction designed to avoid tax liability by the use of mere formalisms".||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1973 Groves v. U.S., 533 F.2d 1376 (5th Cir. 1976) Trust territory of the Pacific Islands is an "agency of the United States".||[categories: 'international', 'other']|[related cases: McComish v. Commr., Morse v. U.S., Payne v. U.S.]|[date added: 2023-09-02] appellate 1976 Haffner's Service Stations Inc. v. Commr., 326 F.3d 1 (1st Cir. 2003) Rejecting the independent investor test as the exclusive test and applying the multifactor approach through consideration of a company's profit and return on equity.||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 2003 Hall [U.S. v.], 650 F.2d 994 (9th Cir. 1981) "[T]he bank deposits method of proof is * * * a circumstantial way of establishing unreported income."||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1981 Ham v. U.S., 408 F.2d 671 (6th Cir. 1969) Construction worker spent four years working on a project distant from place where family resided, returning only on weekends, was away indefinitely.||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] appellate 1969 Hampton v. U.S., 513 F.2d 1234 (Ct. Cl. 1975) Filing claim for refund is condition precedent to maintenance of any suit for recovery of wrongfully assessed tax.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1975 Hansen v. Commr., 820 F.2d 1464 (9th Cir. 1987) "[I]ntentional disregard occurs when a taxpayer who knows or should know of a rule or regulation chooses to ignore the requirements."||[categories: 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Hansen v. Commr., 471 F.3d 1021 (9th Cir. 2006) "[A] taxpayer cannot negate the negligence penalty through reliance on a transaction's promoters or on other advisors who have a conflict of interest".||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 2006 Hansen v. U.S., 7 F.3d 137 (9th Cir. 1993) Form 4340 may be used to show that notice and demand for payment has been made.||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Hanson [U.S. v.], 2 F.3d 942 (9th Cir. 1993) A taxpayer who files a fraudulent return does not purge the fraud by subsequent voluntary disclosure; the fraud was committed, and the offense completed, when the original return was filed.||[categories: 'criminal/fraud']|[related cases: Badaracco v. Commr.]|[date added: 2023-09-02] appellate 1993 Harbor Bancorp Co. v. Commr., 115 F.3d 722 (9th Cir. 1997) Court of appeals may affirm Tax Court decisions on any grounds found in the record regardless of Tax Court's rationale.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1997 Harp v. Commr., 263 F.2d 139 (6th Cir. 1959) "[T]he Commissioner's determination is presumed correct, but if error is shown, the presumption disappears and the Commissioner then has the burden of proving the correctness of his determination, or at least the correct amount actually due."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1959 Harrell v. U.S., 13 F.3d 232 (7th Cir. 1993) Describing as frivolous the argument that "Congress has no constitutional [taxing] authority over citizens of the states of the United States, as opposed to residents either of the District of Columbia or of U.S. territories and possessions".||[categories: 'frivolous']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Sullivan v. U.S., 788 F.2d 813 (1st Cir. 1986) Imposing double costs against a taxpayer for raising related frivolous arguments.||[categories: 'frivolous', 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Kelley [U.S. v.], 769 F.2d 215 (4th Cir. 1985) It was deceptive to file Forms W-4 claiming, on the basis of frivolous arguments, that wages were exempt from income tax.||[categories: '3121', 'frivolous', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] appellate 1985 McNair v. Eggers, 788 F.2d 1509 (11th Cir. 1986) Describing the taxpayer's argument that his wages were not income as "patently frivolous".||[categories: '3121', 'frivolous', 'wages/employees']|[related cases: Connor v. Commr., Kile v. Commr., Romero [U.S. v.]]|[date added: 2023-09-02] appellate 1986 Morse [U.S. v.], 532 F.3d 1130 (11th Cir. 2008) An argument that income from work in the private sector is not subject to income tax was frivolous.||[categories: 'frivolous']|[related cases: ]|[date added: 2023-09-02] appellate 2008 Motes v. U.S., 785 F.2d 928 (11th Cir. 1986) The taxpayer's arguments that "only public servants are subject to tax liability" were frivolous.||[categories: 'frivolous']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Studley [U.S. v.], 783 F.2d 934 (9th Cir. 1986) Taxpayer's argument that he is not a taxpayer is frivolous.||[categories: 'frivolous']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Todd v. U.S., 849 F.2d 365 (9th Cir. 1988) The addition of the words "signed involuntarily under penalty of statutory punishment" below the jurat did not make the Form 1040 a frivolous return under section 6702.||[categories: 'frivolous']|[related cases: ]|[date added: 2023-09-02] appellate 1988 Hauptman v. Commr., 831 F.3d 950 (8th Cir. 2016) The taxpayer's history of noncompliance supplied an adequate basis to reject his offer in compromise.||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2016 Hayman v. Commr., 992 F.2d 1256 (2d Cir. 1993) Where a taxpayer "claims to have signed the returns without reading them, [he or] she nevertheless is charged with constructive knowledge of their contents".||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Heil Beauty Supplies v. Commr., 199 F.2d 193 (8th Cir. 1952) The taxpayer's payment scheme was indicative of a disguised distribution of profit where the shareholder was paid in one lump sum each year as opposed to throughout the year as services were rendered. "[A]ny payment arrangement between a corporation and a stockholder * * * is always subject to close scrutiny for income tax purposes, so that deduction will not be made, as purported salary, rental or the like, of that which is in the realities of the situation an actual distribution of profits."||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] appellate 1952 Heim v. Commr., 251 F.2d 44 (8th Cir. 1958) Return included both signatures, but it was later discovered that it was the family accountant who had signed the wife's name on the return per her phone instructions; court held the tax return was joint.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1958 Heiner v. Crosby, 24 F.2d 191 (3d Cir. 1928) "[F]orced sales" do not signify fair market value.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 1928 Helvering v. Gregory, 69 F.2d 809 (2d Cir. 1934) "[A]ny one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the treasury; there is not even a patriotic duty to increase one's taxes."||[categories: 'other', 'tax101']|[related cases: ]|[date added: 2023-09-02] appellate 1934 Heman v. Commr., 283 F.2d 227 (8th Cir. 1960) Erroneous belief that no tax is due is not reasonable cause for failure to file fiduciary return.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 1960 Hendricks v. Commr., 406 F.2d 269 (5th Cir. 1969) A taxpayer is not allowed to reduce ordinary income actually received by the amount of income he failed to receive.||[categories: 'tax101']|[related cases: Hort v. Commr., Hutcheson v. Commr., Tonn v. Commr.]|[date added: 2023-09-02] appellate 1969 Hess v. U.S., 537 F.2d 457 (Cl. Ct. 1976) Requiring under the duty of consistency the heirs to use as the basis for inherited stock the value reported by the executor even though the heirs were minors and were not personally involved in reporting the value.||[categories: 'basis', 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] appellate 1976 Heyen v. U.S., 945 F.2d 359 (10th Cir. 1991) Disregarding as shams 27 transfers of stock to intermediate beneficiaries who then transferred the stock to the original transferor's family.||[categories: 'estate and gift taxes', 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Hicks [U.S. v.], 947 F.2d 1356 (9th Cir. 1991) "[C]ongress enacted the * * * [paperwork reduction act] to keep agencies, including the IRS, from deluging the public with needless paperwork" and that "[i]t did not do so to create a loophole in the tax code".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Honigman v. Commr., 466 F.2d 69 (6th Cir. 1972) The below-market sale of corporate assets at issue diminished the net worth of the corporation.||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] appellate 1972 Hope v. Commr., 471 F.2d 738 (3d Cir. 1973) Sale of stock taxable in year of sale despite taxpayers' efforts to rescind stock sale in that year.||[categories: '1001', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] appellate 1973 Horn v. Commr., 968 F.2d 1229 (D.C. Cir. 1992) Descri​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​bing an economic sham as a transaction structured "in such a way as to create the tax benefits while completely avoiding economic risk".||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1992 Hospital Resource Personnel Inc. v. U.S., 68 F.3d 421 (11th Cir. 1995) Common law rules serve as the basis for classifying workers as employees or independent contractors.||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] appellate 1995 Huffman v. Commr., 518 F.3d 357 (6th Cir. 2008) The taxpayer's "inadvertence or intent" is not "relevant to the inquiry of whether a change in accounting method has occurred".||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] appellate 2008 Ibrahim v. Commr., 788 F.3d 834 (8th Cir. 2015) A married taxpayer who erroneously filed a "head of household" return could file jointly.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 2015 Illes v. Commr., 982 F.2d 163 (6th Cir. 1992) The entire artifice of the tax shelter at issue was constructed on the foundation of the overvaluation of its assets.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1992 Interex Inc. v. Commr., 321 F.3d 55 (1st Cir. 2003) "[A]ccrual method taxpayers may deduct expenses when they are incurred even if they have not yet been paid[.]"||[categories: '446', 'accounting methods', 'tax101', 'timing']|[related cases: ]|[date added: 2023-09-02] appellate 2003 Ireland v. U.S., 621 F.2d 731 (5th Cir. 1980) "[T]here is no requirement that the dividend be formally declared or even intended by the corporation."||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] appellate 1980 Janss [Commr. v.], 260 F.2d 99 (8th Cir. 1958) Disallowing an Iowa college student's deduction for travel expenses while employed as a construction worker in Alaska on the grounds that no business exigencies required his travel there.||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] appellate 1958 Jelke[Estate of] v. Commr., 507 F.3d 1317 (11th Cir. 2007) The Tax Court erred by allowing only a partial discount for built-in capital gains tax liability inherent in a bequest of stock instead of allowing a dollar-for-dollar discount of the entire built-in capital gains tax "under the arbitrary assumption that * * * [the underlying corporation] is liquidated on * * * [the date of the bequest]".||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 2007 Jones v. Commr., 259 F.2d 300 (5th Cir. 1958) Taxpayer's cooperation by making his books readily available to authorities was one factor in finding no fraud.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1958 Jones v. Commr., 927 F.2d 849 (5th Cir. 1991) Observing that "[a] taxpayer's intent plays perhaps the most important part in determining the establishment and maintenance of a foreign residence," but then proceeding to consider a number of objective factors as evidence of the taxpayer's residence.||[categories: 'international']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Kalb v. United.States, 505 F.2d 506 (2d Cir. 1974) "[Section 6402] clearly gives the IRS the discretion to apply a refund to 'any liability' of the taxpayer."||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Kaplin [Estate of] v. Commr., 748 F.2d 1109 (6th Cir. 1984) Reversing a Tax Court decision because the Tax Court failed to consider a sale of the subject parcel itself two years after the donation of the parcel.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Karr v. Commr., 924 F.2d 1018 (11th Cir. 1991) Facade of energy enterprise developed solely to produce deductible losses for investors.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Kasey v. Commr., 457 F.2d 369 (9th Cir. 1972) Ruling that there was no merit to the argument that the "record keeping requirements and the requirement that taxpayers shall prepare and file their tax returns, as established by the Internal Revenue Code and the Internal Revenue Service, violate their privilege against self-incrimination under the Fifth Amendment and amount to involuntary servitude, prohibited by the Thirteenth Amendment".||[categories: 'constitution']|[related cases: ]|[date added: 2023-09-02] appellate 1972 Kaufman v. Shulman, 687 F.3d 21 (1st Cir. 2012) The substantial compliance doctrine may be used to forgive "minor discrepancies" in the taxpayer's reporting.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2012 Kelley v. Commr., 45 F.3d 348 (9th Cir. 1995) Tax court has equitable power to reform agreements between taxpayer and IRS.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1995 Kelly v. Lethert, 362 F.2d 629 (8th Cir. 1966) Government is entitled to only one satisfaction of trust fund taxes.||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] appellate 1966 Kile v. Commr., 739 F.2d 265 (7th Cir. 1984) Imposition of a penalty under section 6673 was warranted where taxpayer had no reasonable basis to believe that wages were not properly subject to income tax "given the universal and longstanding rejection of this argument."||[categories: '3121', 'penalties', 'wages/employees']|[related cases: Connor v. Commr., McNair v. Eggers, Romero [U.S. v.]]|[date added: 2023-09-02] appellate 1984 Kimball [U.S. v.], 896 F.2d 1218 (9th Cir. 1990) "[A]s a general rule, we will not consider an issue raised for the first time on appeal."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1990 Kimbell v. U.S., 371 F.3d 257 (5th Cir. 2004) "[A]bsence of negotiations * * * over price or terms is not a compelling factor in the determination as to whether a sale is bona fide, particularly when the exchange value is set by objective factors".||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] appellate 2004 Kimbrell v. Commr., 371 F.2d 897 (5th Cir. 1967) Disregarding a corporation that displayed some corporate formalities because it engaged in no substantial business transactions.||[categories: 'corporations']|[related cases: Commonwealth Improv. Co. [Burnet v.], Dalton v. Bowers, Moline Properties, Inc. v. Commr., New Colonial Ice Co., Inc. v. Commr., Paymer v. Commr., Tomlinson v. Miles]|[date added: 2023-09-02] appellate 1967 Kindred v. Commr., 454 F.3d 688 (7th Cir. 2006) "[W]ithout an actual offer in compromise to consider, it would be most difficult for either the Tax Court or this court to conclude that the appeals officer might have abused his discretion; for the appeals officer could not mistakenly reject something which has not been presented to him."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2006 Kirchman v. Commr., 862 F.2d 1486 (11th Cir. 1989) Option straddles entered to produce deductions with little risk of real loss.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1989 Klein v. Commr., 899 F.2d 1149 (11th Cir. 1990) Statutory requirements of closing agreements are exclusive and strictly construed.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1990 Kluener [Estate of] v. Commr., 154 F.3d 630 (6th Cir. 1998) Recharacterizing sale of horses from closely held corporation as direct sale from the corporation's owner.||[categories: '1001', 'corporations', 'sale or exchange', 'substance over form']|[related cases: Court Holding Co. [Commr. v.], Cumberland Pub. Serv. Co. [U.S. v.]]|[date added: 2023-09-02] appellate 1998 Knight-Ridder Newspapers Inc. v. U.S., 743 F.2d 781 (11th Cir. 1984) Court used mathematical analysis to decide that the taxpayer's accounting method did not clearly reflect income.||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Koch v. Alexander, 561 F.2d 1115 (4th Cir. 1977) No statutory mandate for Commissioner to accept amended returns.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1977 Kochell [In Re] v. U.S., 804 F.2d 84 (7th Cir. 1986) Trustee in bankruptcy, who succeeded to rights of IRA beneficiary, was held taxable on distribution used to satisfy creditors of the beneficiary.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Korby [Estate of] v. Commr., 471 F.3d 848 (8th Cir. 2006) Stating that the lack of a management contract, the failure to document management hours, the manner in which payments were made, and the failure of decedent to retain adequate assets in her own name supported rejection of petitioner's contention that payments to decedent's living trust were a management fee.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] appellate 2006 Krukowski v. Commr., 279 F.3d 547 (7th Cir. 2002) "[Section] 469 prohibits the deduction of passive activity losses, except insofar as the losses are used to offset passive activity income."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2002 LabelGraphics Inc. v. Commr., 221 F.3d 1091 (9th Cir. 2000) "[A]n intention to remedy prior undercompensation can weigh in favor of reasonableness".||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 2000 Laudenslager v. Commr., 305 F.2d 686 (3d Cir. 1962) "A transaction is not considered a sale where, for example, the transferor reserves a royalty of a percentage of the minerals to be produced, or where, in addition to reserving a royalty, he receives a cash bonus payment."||[categories: '1001', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] appellate 1962 Laurins v. Commr., 889 F.2d 910 (9th Cir. 1989) The fact that a taxpayer is sophisticated in tax matters may permit an inference of intent to defraud when he willfully underpays his taxes.||[categories: 'criminal/fraud', 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1989 Lazore v. Commr., 11 F.3d 1180 (3d Cir. 1993) The Canandaigua Treaty did not exempt wages earned by members of the Mohawk Nation--another party to the Canandaigua Treaty.||[categories: '61', '3121', 'gross income', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Lee v. Commr., 155 F.3d 584 (2d Cir. 1998) "[I]nterest payments are not deductible if they arise from transactions that can not with reason be said to have purpose, substance, or utility apart from their anticipated tax consequences."||[categories: '163', 'economic substance', 'interest expense']|[related cases: ]|[date added: 2023-09-02] appellate 1998 Lerch v. Commr., 877 F.2d 624 (7th Cir. 1989) No obligation to apply Cohan rule where taxpayer fails to cooperate with Commissioner and Tax Court.||[categories: '162', 'business expenses']|[related cases: Sanford v. Commr., Vanicek v. Commr., Cohan v. Commr., Lewis v. Commr.]|[date added: 2023-09-02] appellate 1989 Levy v. Commr., 212 F.2d 552 (5th Cir. 1954) Expenditures for which there is an unconditional right of reimbursement are not business expenses.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] appellate 1954 Lewis v. Commr., 560 F.2d 973 (9th Cir. 1977) Stating that the Cohan rule may not be applied to certain expenses.||[categories: '162', 'business expenses']|[related cases: Sanford v. Commr., Vanicek v. Commr., Cohan v. Commr., Lerch v. Commr.]|[date added: 2023-09-02] appellate 1977 Logan Lumber Co. v. Commr., 365 F.2d 846 (5th Cir. 1966) "[I]f every taxpayer who * * * was too busy to file a return escaped the penalty for failure to file, our tax system would soon collapse."||[categories: 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1966 Lovell v. U.S., 755 F.2d 517 (7th Cir. 1984) "[P]laintiffs also contend that the Constitution prohibits imposition of a direct tax without apportionment. they are wrong; it does not."||[categories: 'constitution']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Lucky Stores Inc. v. Commr., 153 F.3d 964 (9th Cir. 1998) Declining to allow taxpayer to rely on "several private letter rulings and one technical advice memorandum".||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 1998 Maginnis [U.S. v.], 356 F.3d 1179 (9th Cir. 2004) Noting that the Supreme Court's decision in the Arkansas Best Corp. case rejected the "motive" test.||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] appellate 2004 Mahler v. Commr., 119 F.2d 869 (2d Cir. 1941) Concluding that preferred stock and common stock of a corporation became worthless in different years.||[categories: '165', 'losses', 'worthless securities']|[related cases: ]|[date added: 2023-09-02] appellate 1941 Malinowski [U.S. v.], 472 F.2d 850 (3d Cir. 1973) The taxpayer's failure to file a return because of his political beliefs constitutes a disregard of applicable rules and regulations.||[categories: 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1973 Malone & Hyde Inc. v. Commr., 62 F.3d 835 (6th Cir. 1995) A reinsurance arrangement was not bona fide because the captive was undercapitalized and the parent guaranteed the captive's obligations to an unrelated insurer.||[categories: 'insurance', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1995 Mamula v. Commr., 346 F.2d 1016 (9th Cir. 1965) Allowing a taxpayer to elect the installment method after he had employed an improper method on one return.||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] appellate 1965 Marcello v. Commr., 380 F.2d 499 (5th Cir. 1967) "A failure to keep books and documents necessary to form a rational basis for the income reported and the expenses deducted [evidences negligence]."||[categories: 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 1967 Marrin v. Commr., 147 F.3d 147 (2d Cir. 1998) Taxpayer who bought stock from a broker and sold it to the same or another broker did not sell the stock to customers.||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] appellate 1998 Masat v. Commr., 784 F.2d 573 (5th Cir. 1986) Ruling that the mere fact that a taxpayer owns out-of-state property does not satisfy his or her burden of proving that the travel expenses were motivated by business rather than personal reasons.||[categories: '162', 'travel expenses']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Matheson [U.S. v.], 532 F.2d 809 (2d Cir. 1976) Estate​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​ estopped to deny decedent's U.S. citizenship after she represented to the U.S. government for a period of more than 20 years that she was a citizen of the United States.||[categories: 'estate and gift taxes', 'estoppel', 'international']|[related cases: ]|[date added: 2023-09-02] appellate 1976 McAlpine [Estate of] v. Commr., 968 F.2d 459 (5th Cir. 1992) A taxpayer who exercises due diligence and good faith in complying with an unclear regulation may be held to have substantially complied.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1992 McComish v. Commr., 580 F.2d 1323 (9th Cir. 1978) Trust territory of the Pacific Islands is not an "agency of the United States".||[categories: 'international', 'other']|[related cases: Groves v. U.S., Morse v. U.S., Payne v. U.S.]|[date added: 2023-09-02] appellate 1978 McCoy Enterprises Inc. v. Commr., 58 F.3d 557 (10th Cir. 1995) "[T]he Tax Court * * * cannot find an abuse of discretion where there is no evidence that the Commissioner exercised any discretion at all".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1995 McFerrin [U.S. v.], 570 F.3d 672 (5th Cir. 2009) "[T]ax credits are a matter of legislative grace, are only allowed as clearly provided for by statute, and are narrowly construed."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2009 McKean v. Scofield, 108 F.2d 764 (5th Cir. 1940) A trust was taxable as a trust and not an association because "[s]olicitude for the future of [the settlor's] family [wa]s a main purpose of the trust".||[categories: 'corporations', 'entity classification', 'trusts']|[related cases: ]|[date added: 2023-09-02] appellate 1940 Mckee [U.S. v.], 506 F.3d 225 (3d Cir. 2007) While "the government need not allege or prove the precise amount of additional tax due and owning" to support a charge of tax evasion under section 7201, the evidence must "establish a substantial tax deficiency".||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 2007 McMahan v. Commr., 114 F.3d 366 (2d Cir. 1997) "[R]eliance on a mistaken legal opinion of a competent tax adviser--a lawyer or accountant--that it was unnecessary to file a return constitutes reasonable cause".||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 1997 McManus v. Commr., 583 F.2d 443 (9th Cir. 1978) "[A] taxpayer is estopped from later denying the status he claimed on his tax returns."||[categories: 'estoppel']|[related cases: ]|[date added: 2023-09-02] appellate 1978 McPartlin v. Commr., 653 F.2d 1185 (7th Cir. 1981) Notice sent by certified mail will be deemed insufficient if Commissioner cannot produce return receipt.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1981 Melnik v. U.S., 521 F.2d 1065 (9th Cir. 1975) IRS field agent could not deduct cost of law degree because the degree qualified him for a new trade or business.||[categories: '162', '212', 'trade or business']|[related cases: ]|[date added: 2023-09-02] appellate 1975 Merino v. Commr., 196 F.3d 147 (3d Cir. 1999) "[T]he inquiry into a taxpayer's negligence is highly individualized, and turns on all of the surrounding circumstances including the taxpayer's education, intellect, and sophistication."||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 1999 Merryman v. Commr., 873 F.2d 879 (5th Cir. 1989) Tax structuring disregarded where "money flowed back and forth but the economic positions of the parties were not altered".||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1989 Metro Leasing and Development Corp. v. Commr., 376 F.3d 1015 (9th Cir. 2004) The independent investor test is but one of many factors to be considered when assessing the reasonableness of an executive officer's compensation.||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 2004 Milenbach v. Commr., 318 F.3d 924 (9th Cir. 2003) Proceeds that represent compensation for lost value or capital generally are not taxable.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 2003 Miles-Conley Co. v. Commr., 173 F.2d 958 (4th Cir. 1949) Where a taxpayer's sole stockholder had been paid much less for his service in the same position in previous years, and his compensation increased dramatically when the corporation's profits increased, an inference is warranted that the taxpayer's sole stockholder was attempting to drain off the corporate profits in the guise of salary.||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1949 Minnesota Dept of Revenue v. U.S., 184 F.3d 725 (8th Cir. 1999) Unfiled federal tax lien prevails against subsequent unperfected state tax lien.||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1999 Mixon [Estate of] v. U.S., 464 F.2d 394 (5th Cir. 1972) Referring to the need to determine whether "the transaction complies with arm's length standards and normal business practice".||[categories: '385', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] appellate 1972 Moretti v. Commr., 77 F.3d 637 (2d Cir. 1996) Affirming a Tax Court ruling excluding from evidence documents from a pro se taxpayer not produced in compliance with the standing pretrial order and stating: "[t]he Tax Court acted within its discretion in excluding the documents."||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1996 Moretti v. Commr., 77 F.3d 637 (2d Cir. 1996) Taxpayer's failure to timely file a tax return precluded subsequently claiming a net operating loss carryforward without the net operating losses' being absorbed, to the extent required, by the carryback year.||[categories: '172', 'NOLs']|[related cases: ]|[date added: 2023-09-02] appellate 1996 Morse v. Commr., 419 F.3d 829 (8th Cir. 2005) "The government does not surrender its right to seek civil fraud penalties by undertaking a criminal tax prosecution."||[categories: 'criminal/fraud', 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 2005 Morse v. U.S., 443 F.2d 1185 (Ct. Cl. 1971) Holding the U.S. employee association of Tehran, Iran, was an "agency" of the United States within the meaning of section 911, and the taxpayer was thus not entitled to exclude any salary payments from his gross income.||[categories: '911', 'foreign earned income exclusion', 'international']|[related cases: Groves v. U.S., McComish v. Commr., Payne v. U.S.]|[date added: 2023-09-02] appellate 1971 Mros v. Commr., 493 F.2d 813 (9th Cir. 1974) Patent transfer subject to field-of-use restriction does not dispose of all substantial rights under §1235.||[categories: '1001', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Muhich v. Commr., 238 F.3d 860 (7th Cir. 2001) Issues not addressed or developed are deemed waived--it is not the court's obligation to research and construct the parties' arguments.||[categories: 'other']|[related cases: Greenlaw v. U.S., Penn v. Robertson]|[date added: 2023-09-02] appellate 2001 Mullikin v. U.S., 952 F.2d 920 (6th Cir. 1991) "[N]o statute of limitations is applicable to the assessment of [s]ection 6701 penalties[.]"||[categories: '6501', 'penalties', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Muntwyler v. U.S., 703 F.2d 1030 (7th Cir. 1983) "[W]hen a taxpayer makes voluntary payments to the IRS, he has a right to direct the application of payments to whatever type of liability he chooses."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1983 Murphy v. IRS, 493 F.3d 170 (D.C. Cir. 2007) "[A]n ambiguity in the meaning of a revenue-raising statute should be resolved in favor of the taxpayer, citing, among other authorities, Gould.||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] appellate 2007 Murphy v. U.S., 992 F.2d 929 (9th Cir. 1993) A taxpayer constructively received income where "his failure to receive cash was entirely due to his own volition".||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Nacchio [U.S. v.], 555 F.3d 1234 (10th Cir. 2009) The holding of a vacated opinion "has no decisional significance" and is only "an historical artifact."||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 2009 National Contracting Co. v. Commr. , 105 F.2d 488 (8th Cir. 1939) Failure to file a return with the IRS "did not set the statute of limitations in operation," even where the IRS "examined the [taxpayer's] books and made a report" regarding the tax liability.||[categories: '6501', 'returns and amended returns', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] appellate 1939 Neonatology Associates P.A. v. Commr., 299 F.3d 221 (3d Cir. 2002) "[T]he reliance [on an advisor] must be objectively reasonable in the sense that the taxpayer supplied the professional with all the necessary information to assess the tax matter and that the professional himself does not suffer from a conflict of interest or lack of expertise that the taxpayer knew of or should have known about".||[categories: 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 2002 Neonatology Associates P.A. v. Commr., 299 F.3d 221 (3d Cir. 2002) "[W]hen * * * 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."||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 2002 New York and Presbyterian Hosp. v. U.S., 881 F.3d 877 (Cl. Ct. 2018) “Titles [in the Code] have no legal effect . . . .”||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 2018 Noble v. Commr., 368 F.2d 439 (9th Cir. 1966) A corporation could not deduct, and its sole shareholders must include in income, reimbursements paid to the shareholders for personal expenses.||[categories: '61', '162', 'business expenses', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1966 Nor-Cal Adjusters v. Commr., 503 F.2d 359 (9th Cir. 1974) The complete absence of formal dividend distributions was an indication that compensation paid to shareholders was disguised distributions.||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Nor-Cal Adjusters v. Commr., 503 F.2d 359 (9th Cir. 1974) Taxpayer's payments of compensation to shareholders in lump sums rather than as services were performed was an indication that payments were disguised distributions.||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Nor-Cal Adjusters v. Commr., 503 F.2d 359 (9th Cir. 1974) The fact that the taxpayer consistently had negligible taxable income was an indication that compensation paid to shareholders was disguised distributions.||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Nor-Cal Adjusters v. Commr., 503 F.2d 359 (9th Cir. 1974) An unstructured system of setting shareholder compensation, with no preset criteria, indicated that the shareholder compensation was actually disguised distributions.||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Northern Life Ins. Co. v. U.S., 685 F.2d 277 (9th Cir. 1982) "[I]ncome accrues when the right to receive it becomes fixed . . . even if later events may require the recipient to repay it."||[categories: '451', '1341', 'claim of right doctrine', 'timing']|[related cases: ]|[date added: 2023-09-02] appellate 1982 Northlich, Stolley Inc. v. U.S., 368 F.2d 272 (ct. cl. 1966) Finding a constructive dividend where compensation paid to stockholding officers greatly exceeded that of nonstockholding employees.||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1966 O'Bryan Brothers Inc. v. Commr., 127 F.2d 645 (6th Cir. 1942) Mailing of return to an IRS agent does not constitute a filing.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1942 O'Hare v. Commr., 641 F.2d 83 (2d Cir. 1981) Stating "it is hardly likely that a true owner or joint venturer would agree to an arrangement whereby his profit depended upon the timing of the sale rather than the amount of the proceeds of the sale. Such a payment mechanism clearly suggests a fee for the use of credit * * *".||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1981 Olbres [U.S. v.], 61 F.3d 967 (1st Cir. 1995) In prosecution for tax fraud, "jury may permissibly infer that a taxpayer read his return and knew its contents from the bare fact that he signed it".||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1995 Olpin v. Commr., 270 F.3d 1297 (10th Cir. 2001) "[T]he general rule when a tax return is unsigned is that it is invalid."||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 2001 O'Neill v. Commr., 271 F.2d 44 (9th Cir. 1959) "[P]roof of basis is a specific fact which the taxpayer has the burden of proving."||[categories: 'basis']|[related cases: ]|[date added: 2023-09-02] appellate 1959 Orvis v. Commr., 788 F.2d 1406 (9th Cir. 1986) Deduction not allowable to the extent that the employee is entitled to reimbursement from the employer.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Owensby & Kritikos Inc. v. Commr., 819 F.2d 1315 (5th Cir. 1987) Considering compensation as a percentage of taxable income before deducting the compensation in question is an accurate gauge of whether a corporation is disguising distributions of dividends as compensation.||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Ox Fibre Brush Co. v. Blair, 32 F.2d 42 (4th Cir. 1929) "[A] corporation with a large surplus in a given year may attempt to dispose of that surplus in the guise of salaries and thereby evade its full tax burden[.]"||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1929 Pacific Grains Inc. v. Commr., 399 F.2d 603 (9th Cir. 1968) The reasonableness of compensation is a question of fact to be determined on the basis of all the facts and circumstances.||[categories: 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1968 Pacific Grains Inc. v. Commr., 399 F.2d 603 (9th Cir. 1968) The failure of a successful company "to pay any dividends while radically increasing the compensation of its sole shareholder" is particularly telling of a disguised dividend.||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1968 Palmer v. U.S., 116 F.3d 1309 (9th Cir. 1997) The IR​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​S may rationally reconstruct income where taxpayers fail to offer accurate records.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1997 Park v. Commr., 25 F.3d 1289 (5th Cir. 1994) "[B]y signing the return * * * [the putative innocent spouse] undertook responsibility for it which she cannot escape by simply ignoring its contents".||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1994 Park v. Commr., 25 F.3d 1289 (5th Cir. 1994) "[C]ourts have generally agreed that in innocent spouse cases involving the omission of income, relevant inquiry is whether the spouse claiming innocent spouse relief knew or should have known of an income-producing transaction that the other spouse failed to report in their joint return."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1994 Parker v. Commr., 724 F.2d 469 (5th Cir. 1984) Refuting allegation that "the income tax is an excise tax applicable only against special privileges" and finding Congress empowered to levy income tax against any source of income.||[categories: 'constitution']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Pasternak v. Commr., 990 F.2d 893 (6th Cir. 1993) Reliance on promoters or their agents is unreasonable because such persons are not independent of the investment.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 1993 Paul E. Kummer Realty Co. v. Commr., 511 F.2d 313 (8th Cir. 1975) "The absence of dividends to stockholders out of available profits justifies an inference that some of the purported compensation really represented a distribution of profits as dividends."||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1975 Paul E. Kummer Realty Co. v. Commr., 511 F.2d 313 (8th Cir. 1975) The fact that amounts received by shareholders were "almost identical" to the percentage of stock held by each shareholder was indicative of disguised distributions.||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1975 Paymer v. Commr., 150 F.2d 334 (2d Cir. 1945) Income from property taxed to stockholders, rather than the corporation, only if the corporation is a dummy or sham or is used for tax avoidance purposes.||[categories: 'corporations']|[related cases: Commonwealth Improv. Co. [Burnet v.], Dalton v. Bowers, Moline Properties, Inc. v. Commr., New Colonial Ice Co., Inc. v. Commr., Kimbrell v. Commr., Tomlinson v. Miles]|[date added: 2023-09-02] appellate 1945 Payne v. U.S., 980 F.2d 148 (2d Cir. 1992) Holding Panama Canal Commission qualifies as an agency of the United States for section 911 purposes and wages paid to its employees were not excludible as foreign earned income.||[categories: '911', 'foreign earned income exclusion', 'international']|[related cases: Groves v. U.S., McComish v. Commr., Morse v. U.S.]|[date added: 2023-09-02] appellate 1992 PBBM Rose Hill Ltd. v. Commr., 900 F.3d 193 (5th Cir. 2018) “The plain language of §6751(b) mandates only that the approval of the penalty assessment be ‘in writing’ and by a manager[.]”||[categories: 'penalties']|[related cases: ]|[date added: 2023-09-02] appellate 2018 Penn v. Robertson, 115 F.2d 167 (4th Cir. 1940) "The rescission in 1931 before the close of the calendar year * * * extinguished what otherwise would have been taxable income to * * * [the taxpayer] for that year."||[categories: '1001', 'sale or exchange']|[related cases: Greenlaw v. U.S., Muhich v. Commr.]|[date added: 2023-09-02] appellate 1940 Peterson v. Commr., 827 F.3d 968 (11th Cir. 2016) Addressing whether postretirement program distributions are subject to self-employment tax.||[categories: '1402', 'other', 'self-employment tax']|[related cases: ]|[date added: 2023-09-02] appellate 2016 Plante v. Commr., 168 F.3d 1279 (11th Cir. 1999) Affirming that the taxpayer was not entitled to a bad debt deduction and associated carryover losses because stock purchase agreement was unambiguous that advances were capital contributions and not debt.||[categories: '166', '385', 'bad debt expense', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] appellate 1999 Polakof v. Commr., 820 F.2d 321 (9th Cir. 1987) In characterizing partnership income "it is the dominant economic motive of the partnership, not that of the individual investors, that is determinative".||[categories: 'partnerships']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Porth v. U.S., 426 F.2d 519 (10th Cir. 1970) Name and address on a form is insufficient to be a valid return because it fails to "contain any information relating to the taxpayer's income from which the tax can be computed * * * within the meaning of the Internal Revenue Code or the regulations adopted by the Commissioner".||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1970 Portillo v. Commr., 932 F.2d 1128 (5th Cir. 1991) "[B]efore we will give the Commissioner the benefit of the presumption of correctness, he must engage in one final foray for truth * * * such as by showing the taxpayer's net worth, bank deposits, cash expenditures".||[categories: 'criminal/fraud', 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Posey v. U.S., 449 F.2d 228 (5th Cir. 1971) "It is well established that the government is not bound by the unauthorized or incorrect statements of its agents."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1971 Potemken [U.S. v.], 841 F.2d 97 (4th Cir. 1988) Assessment is a prerequisite to the creation of a lien.||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1988 Price v. U.S., 335 F.2d 671 (5th Cir. 1964) "[T]he 'bank deposits' method assumes * * * that all money deposited in a taxpayer's bank account during a given period constitutes taxable income."||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1964 Price v. U.S., 335 F.2d 671 (5th Cir. 1964) "[I]t is the burden of the taxpayer to demonstrate a non-taxable source for this cash."||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1964 Price v. U.S., 335 F.2d 671 (5th Cir. 1964) "[O]f course * * * the government must take into account any non-taxable source or deductible expense of which it has knowledge."||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1964 Proctor & Gamble Co. v. Commr., 961 F.2d 1255 (6th Cir. 1992) "[T]he purpose of section 482 is to prevent artificial shifting of income between related taxpayers. Because Spanish law prohibited royalty payments, P&G could not exercise the control that section 482 contemplates, and allocation under section 482 is inappropriate."||[categories: '482', 'international', 'transfer pricing']|[related cases: ]|[date added: 2023-09-02] appellate 1992 Prussner v. U.S., 896 F.2d 218 (7th Cir. 1990) The substantial compliance doctrine "should be interpreted narrowly".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1990 Rabang v. I.N.S., 35 F.3d 1449 (9th Cir. 1994) "[T]he term 'national' came into popular use in this country when the United States acquired territories outside its continental limits, and was used in reference to noncitizen inhabitants of those territories".||[categories: 'international']|[related cases: ]|[date added: 2023-09-02] appellate 1994 Raley v. Commr., 676 F.2d 980 (3d Cir. 1982) A taxpayer did not act with fraudulent intent because he "went out of his way to inform every person involved in the collection process that he was not going to pay any federal income taxes".||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1982 Reser v. Commr., 112 F.3d 1258 (5th Cir. 1997) "[T]ax returns setting forth 'dramatic deductions' will generally put a reasonable taxpayer on notice that further investigation is warranted."||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 1997 Resources v. Commr., 857 F.2d 1471 (5th Cir. 1988) Taxpayer's use of corporate funds as capital investment in new corporation, stock of which was held in his own name, was income to him as a constructive dividend.||[categories: '301', 'corporations', 'dividends']|[related cases: ]|[date added: 2023-09-02] appellate 1988 Resser v. Commr., 74 F.3d 1528 (7th Cir. 1996) Petitioner wife did not have reason to know there was substantial understatement where, despite the relative size of deductions vis-a-vis income, a consistent adjusted gross income was reported on returns over the years, the returns at issue involved the "complex financial world" of trading losses, and there was no appreciable difference in living standard from prior years.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1996 Reynolds v. Commr., 296 F.3d 607 (7th Cir. 2002) Keeping written records is not the only method to prove section 274 expenses but alternative methods are disfavored.||[categories: '162', 'business expenses']|[related cases: ]|[date added: 2023-09-02] appellate 2002 Rice's Toyota World Inc. v. Commr., 752 F.2d 89 (4th Cir. 1985) Sale-leaseback of a computer by a car dealership, solely to generate depreciation deductions.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1985 Rice's Toyota World Inc. v. Commr., 752 F.2d 89 (4th Cir. 1985) The Tax Court correctly ignored labels applied by the taxpayers and determined that a transaction was in substance a fee paid for tax benefits.||[categories: 'economic substance', 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1985 Rice's Toyota World Inc. v. Commr., 752 F.2d 89 (4th Cir. 1985) In a sham sale-leaseback transaction financed with notes, holding that taxpayer could deduct interest paid on a recourse note because it represented a genuine obligation.||[categories: 'economic substance', 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1985 Richardson v. Commr., 509 F.3d 736 (6th Cir. 2007) Fraud by one spouse "lifts the statute of limitations" for both.||[categories: '6501', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] appellate 2007 Rickman [U.S. v.], 638 F.2d 182 (10th Cir. 1980) A document that does not provide information from which a tax can be computed is not a return.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1980 Roat v. Commr., 847 F.2d 1379 (9th Cir. 1988) Commissioner can rely on the presumption that his determination is correct if taxpayer does not contest the determination on the merits.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1988 Roberts v. Commr., 820 F.3d 247 (7th Cir. 2016) Taxpayer's for-profit horse activity started with the decision to build a "bigger and better horse training facility".||[categories: 'other', 'profit motive']|[related cases: ]|[date added: 2023-09-02] appellate 2016 Rockefeller v. Commr., 676 F.2d 35 (2d Cir. 1982) "[C]ourts have consistently reaffirmed that public policy demands a broad and flexible interpretation of statutes governing charitable contributions."||[categories: '170', 'charitable contributions']|[related cases: ]|[date added: 2023-09-02] appellate 1982 Rodriguez v. Commr., 722 F.3d 306 (5th Cir. 2013) "If all section 951 inclusions constituted qualified dividends, then statutory provisions specifically designating certain inclusions as dividends would amount to surplusage."||[categories: 'international', 'statutory construction']|[related cases: ]|[date added: 2023-09-02] appellate 2013 Rogers v. Commr., 111 F.2d 987 (6th Cir. 1940) Held that discrepancies of 100 percent and more between real net income and the reported income for 3 successive years strongly evidence an intent to defraud the government.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1940 Romero [U.S. v.], 640 F.2d 1014 (9th Cir. 1981) "[C]ompensation for labor or services, paid in the form of wages or salary, has been universally, held by the courts of this republic to be income, subject to the income tax laws currently applicable."||[categories: '61', '3121', 'gross income', 'penalties', 'wages/employees']|[related cases: Connor v. Commr., McNair v. Eggers, Kile v. Commr.]|[date added: 2023-09-02] appellate 1981 Root v. Commr., 220 F.2d 240 (9th Cir. 1955) "The essential difference between a creditor and a stockholder is that the latter intends to make an investment and take the risks of the venture, while the former seeks a definite obligation, payable in any event".||[categories: '385', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] appellate 1955 Rose v. Commr., 868 F.2d 851 (6th Cir. 1989) A "court will not inquire into whether a transaction's primary objective was for the production of income or to make a profit, until it determines that the transaction is bona fide and not a sham."||[categories: 'economic substance', 'other', 'profit motive']|[related cases: ]|[date added: 2023-09-02] appellate 1989 Ross v. Commr., 227 F.2d 265 (5th Cir. 1955) Taxpayer did not list property with real estate dealers, advertise, or make efforts to sell the property.||[categories: 'other', 'profit motive']|[related cases: ]|[date added: 2023-09-02] appellate 1955 Royal Caribbean Cruises Ltd. v. U.S., 108 F.3d 290 (11th Cir. 1997) Interpreting statutory terms in question "consistent with the general rule of construction that ambiguous tax statutes are to be construed against the government and in favor of the taxpayer", also citing, among other authorities, Gould.||[categories: 'statutory construction']|[related cases: Gould v. Gould, Weingarden v. Commr.]|[date added: 2023-09-02] appellate 1997 Ruidoso Racing Assn. Inc. v. Commr., 476 F.2d 502 (10th Cir. 1973) Fraud of majority shareholder imputed to corporation because corporation received tax benefit from shareholder's fraudulent acts to understate corporate gross income.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1973 Safety Tube Corp. v. Commr., 168 F.2d 787 (6th Cir. 1948) Requiring legal fees to be capitalized where controversy involved title and ownership of a patent.||[categories: '263', 'capital expenditures']|[related cases: ]|[date added: 2023-09-02] appellate 1948 Sage v. U.S., 908 F.2d 18 (5th Cir. 1990) "[T]he Supreme Court has held that a levy is a means by which the Internal Revenue Service may acquire possession of a taxpayer's property * * *; a 'set-off', on the other hand, is the application of funds already in the government's possession against a taxpayer's outstanding tax liability."||[categories: 'collection', 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1990 Sage v. U.S., 908 F.2d 18 (5th Cir. 1990) "Every court that has considered the issue has held that no period of limitations applies to the assessment of [s]ection 6700 penalties."||[categories: '6501', 'penalties', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] appellate 1990 Sala v. U.S., 613 F.3d 1249 (10th Cir. 2010) Potential to earn $550,000 profit was dwarfed by expected tax benefit of nearly $24 million.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2010 Sampson v. Commr., 710 F.2d 262 (6th Cir. 1983) Tax court has power to permit, in its discretion, intervention by persons or entities who have not been served with a notice of deficiency.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1983 Saunders v. Commr., 720 F.2d 871 (5th Cir. 1983) Explai​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​ning test for distinguishing debt from compensation.||[categories: 'loan/debt']|[related cases: ]|[date added: 2023-09-02] appellate 1983 Saviano v. Commr., 765 F.2d 643 (7th Cir. 1985) The sale of a "gold option" did not result in capital gains when the option represented a right of first refusal profits from mining.||[categories: '1221', 'capital vs. ordinary', 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1985 Scheidelman v. Commr., 682 F.3d 189 (2d Cir. 2012) Finding doctrine of substantial compliance may excuse technical deficiency when required information and required signature was dispersed in two forms submitted together.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2012 Schiff [U.S. v.], 876 F.2d 272 (2d Cir. 1989) The "average citizen knows that the payment of income taxes is legally required".||[categories: 'frivolous']|[related cases: ]|[date added: 2023-09-02] appellate 1989 Schultz v. U.S., 493 F.2d 1225 (4th Cir. 1974) Brothers planned to avoid gift taxes through repeated reciprocal gifts to each others' children.||[categories: 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] appellate 1974 Schulz v. Commr., 294 F.2d 52 (9th Cir. 1961) "Countervailing tax considerations upon each taxpayer should tend to limit schemes or forms which have no basis in economic fact. The Commissioner should be slow in going beyond the values which the taxpayers state when such countervailing factors are present."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1961 Schulz v. Commr., 686 F.2d 490 (7th Cir. 1982) Court refused to allow a family trust to deduct, as "expenses of administration," the cost of maintaining and operating the family car and home.||[categories: 'trusts']|[related cases: ]|[date added: 2023-09-02] appellate 1982 Scofield v. Lewis, 251 F.2d 128 (5th Cir. 1958) "[A] regulation, valid when promulgated, becomes invalid upon the enactment of a statute in conflict with the regulation."||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] appellate 1958 Sealy Power Ltd. v. Commr., 46 F.3d 382 (5th Cir. 1995) Observing that testing property for potentially defective performance does not preclude property's having already been placed in service.||[categories: '167', 'depreciation']|[related cases: ]|[date added: 2023-09-02] appellate 1995 Sears v. Hassett, 111 F.2d 961 (1st Cir. 1940) Noting the "character of the trust" is determined by "the purposes and potential activities as disclosed on the face of the trust instrument".||[categories: 'corporations', 'entity classification', 'trusts']|[related cases: ]|[date added: 2023-09-02] appellate 1940 Shapiro [Estate of] v. Commr., 111 F.3d 1010 (2d Cir. 1997) Revenue procedures ordinarily not binding and don't confer rights upon taxpayers.||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 1997 Sheppard v. U.S., 361 F.2d 972 (Ct. Cl. 1966) Useful as the step transaction doctrine may be in the interpretation of equivocal contracts and ambiguous events, it cannot generate events which never took place just so an additional tax liability might be asserted.||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1966 Sherrod [Estate of] v. Commr., 774 F.2d 1057 (11th Cir. 1985) "[S]ection 162 permits the deduction of business expenses in arriving at adjusted gross income . . . ."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1985 Siegel v. U.S., 464 F.2d 891 (9th Cir. 1972) "[T]he line between earned income and income from property is not always marked with dazzling clarity".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1972 Simmons v. U.S., 308 F.2d 938 (5th Cir. 1962) "[I]t is well-settled that the doctrine of equitable estoppel, in proper circumstances, and with appropriate caution, may be invoked against the United States in cases involving internal revenue taxation."||[categories: 'estoppel']|[related cases: ]|[date added: 2023-09-02] appellate 1962 Simon v. Commr., 176 F.2d 230 (2d Cir. 1949) Buyer and seller of paper box-board maintained no inventory, and was not engaged in business of "merchandising" requiring use of accrual method in computing income for federal income tax purposes.||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] appellate 1949 Simon v. Commr., 248 F.2d 869 (8th Cir. 1957) "[T]he corporation is liable for a substantial tax upon the diverted income it failed to report. Further tax will be collected from taxpayers under the constructive dividend theory."||[categories: '61', '301', 'corporations', 'dividends', 'gross income']|[related cases: King's Court Mobil Home Park v. Commr.]|[date added: 2023-09-02] appellate 1957 Smith [U.S. v.], 618 F.2d 280 (5th Cir. 1980) "[T]he bare act of filing a form 1040 does not constitute a tax 'return' under section 7203."||[categories: 'criminal/fraud', 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1980 Smith v. Commr., 926 F.2d 1470 (6th Cir. 1991) "[W]e are not unmindful of the heavy burden placed upon the Tax Court by the doctrine of stare decisis and that any decision to depart from the doctrine requires 'special justification.'"||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Solomon v. Commr., 732 F.2d 1459 (6th Cir. 1984) Stating badges of fraud include failure to report income over an extended period of time.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Soulard [U.S. v.], 730 F.2d 1292 (9th Cir. 1984) Summary charts are not to be admitted in evidence or used by the jury during deliberations but can be used as "testimonial aids" during the agent's testimony and during closing arguments.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Spang Industries Inc. v. U.S., 791 F.2d 906 (Fed. Cir.1986) "The LIFO method of determining costs is designed to reflect cost increases that result from inflation".||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Spang Industries Inc. v. U.S., 791 F.2d 906 (Fed. Cir.1986) "A revenue ruling is entitled to some weight as reflecting the Commissioner’s interpretation of the regulation, but does not have the same force as a regulation".||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Spector v. Commr., 641 F.2d 376 (5th Cir. 1981) Whether transaction in which taxpayer surrendered his partnership interest in an accounting firm was a sale or a liquidation.||[categories: 'partnerships']|[related cases: ]|[date added: 2023-09-02] appellate 1981 Spicer Accounting Inc. v. U.S., 918 F.2d 90 (9th Cir. 1990) A taxpayer should not be permitted to evade FICA and FUTA by characterizing compensation paid to its shareholder as dividends, rather than wages.||[categories: '301', 'corporations', 'dividends', 'reasonable compensation']|[related cases: ]|[date added: 2023-09-02] appellate 1990 Spicer Accounting Inc. v. U.S., 918 F.2d 90 (9th Cir. 1990) "A corporation's sole full-time worker must be treated as an employee."||[categories: '3121', 'corporations', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] appellate 1990 Standard Office Bldg. Corp. v. U.S. , 819 F.2d 1371 (7th Cir. 1987) "Since the returns gave the Internal Revenue Service all the information it needed to assess the tax, and it already knew everything it needed to know in order to decide whether [taxpayer] was subject to railroad retirement or social security, it would seem that the statute of limitations started to run with the filing of each social security tax return."||[categories: '6501', 'statute of limitations']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Stanford v. Commr., 152 F.3d 450 (5th Cir. 1998) Finding reliance on the adviser reasonable even when his legal interpretation of a code section turned out to be incorrect and the cause of the substantial understatement of tax.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 1998 Stein [U.S. v.], 437 F.2d 775 (7th Cir. 1971) "We, like other circuits, have previously sustained convictions [for tax evasion] where the only proof of unreported income was a bank deposits analysis."||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1971 Steiner v. Commr., 350 F.2d 217 (7th Cir. 1965) Adverse inferences may properly be drawn from taxpayer's failure to call witnesses who would otherwise be expected to be favorable to him.||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1965 Stelly v. Commr., 804 F.2d 868 (5th Cir. 1986) "The [taxpayers'] contention that they are entitled to an inflation adjustment to their interest income is plainly incorrect."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Stephens v. Commr., 905 F.2d 667 (2d Cir. 1990) Taxpayers who repay embezzled funds might be "entitled to a deduction in the year in which the funds are repaid".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1990 Stephenson v. Commr., 748 F.2d 331 (6th Cir. 1984) An individual who turns over his entire annual income to a church is still taxable on that income.||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Stinson [Estate of] v. U.S., 214 F.3d 846 (7th Cir.2000) A gift of forgiveness of corporate indebtedness was a future interest notwithstanding that the individual donees saw an increase in their stock value due to a balance sheet improvement of the debtor family-owned corporation.||[categories: '2503(b)', 'estate and gift taxes']|[related cases: ]|[date added: 2023-09-02] appellate 2000 Summa Holdings Inc. v. Commr., 848 F.3d 779 (6th Cir. 2017) "[T]he Commissioner cannot fault taxpayers for making the most of the tax-minimizing opportunities Congress created."||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2017 Summa Holdings Inc. v. Commr., 848 F.3d 779 (6th Cir. 2017) DISC dividends are subject to high unrelated business income tax when they go into traditional IRA and, like all withdrawals from traditional IRA, are subject to personal income tax when taken out.||[categories: 'DISC', 'international']|[related cases: ]|[date added: 2023-09-02] appellate 2017 Summa Holdings Inc. v. Commr., 848 F.3d 779 (6th Cir. 2017) Observing that "net effect" of DISC is "to transfer export revenue to the export company's shareholders as a dividend without taxing it first as corporate income".||[categories: 'DISC', 'international']|[related cases: ]|[date added: 2023-09-02] appellate 2017 Suzy's Zoo v. Commr., 273 F.3d 875 (9th Cir. 2001) "[T]he purpose of § 481 is to prevent either a distortion of taxable income or a windfall to the taxpayer arising from a change in accounting method[.]"||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] appellate 2001 Swan [U.S. v.], 467 F.3d 655 (7th cir 2006) "[T]ransactions among friends or even relatives are not presumptively fishy--they minimize information and brokerage costs".||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 2006 Swietlik v. U.S., 779 F.2d 1306 (7th Cir. 1985) When a tax refund claim is conditional or uncertain as to existence or amount, filing a protective claim with the Internal Revenue Service is an appropriate measure.||[categories: 'other']|[related cases: ]|[date added: 2023-09-02] appellate 1985 Taggi v. U.S., 35 F.3d 93 (2d Cir. 1994) Taxpayer "claiming an exclusion from income bears the burden of proving that his claim falls within an exclusionary provision of the code".||[categories: 'trial procedure']|[related cases: ]|[date added: 2023-09-02] appellate 1994 Teitelbaum v. Commr., 346 F.2d 266 (7th Cir. 1965) The taxpayer had to report an overpayment received for the sale of property in the year received even though it was later determined that the taxpayer was not entitled to the overpayment.||[categories: '1341', 'claim of right doctrine']|[related cases: ]|[date added: 2023-09-02] appellate 1965 Television Industries Inc. v. Commr., 284 F.2d 322 (2d Cir. 1960) "[I]t would be quite intolerable to pyramid the existing complexities of tax law by a rule that the tax shall be that resulting from the form of transaction taxpayers have chosen or from any other form they might have chosen, whichever is less."||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1960 Terrell v. Commr., 625 F.3d 254 (5th Cir. 2010) 90-day window for seeking review of IRS innocent spouse determination did not begin to run when notice was sent to incorrect address but began to run when notice was remailed to taxpayer's correct address.||[categories: 'notice of deficiency']|[related cases: ]|[date added: 2023-09-02] appellate 2010 Thayer [U.S. v.], 201 F.3d 214 (3d Cir. 1999) "[T]he title of a [statutory] section can assist in resolving ambiguities".||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] appellate 1999 Tibbals v. U.S., 362 F.2d 266 (Ct. Cl. 1966) A taxpayer's purpose can change during the course of his holding of property, and in such cases it is the dominant purpose of his holding during the period prior to the sale which is critical.). However, petitioners have not produced any evidence that indicates that their intentions changed.||[categories: 'other', 'profit motive']|[related cases: ]|[date added: 2023-09-02] appellate 1966 Tomlinson v. Miles, 316 F.2d 710 (5th Cir. 1963) Observing that Moline Properties introduced the alternative requirements of business purpose or business activity to show a separate corporate entity.||[categories: 'corporations', 'tax101']|[related cases: Commonwealth Improv. Co. [Burnet v.], Dalton v. Bowers, Moline Properties, Inc. v. Commr., New Colonial Ice Co., Inc. v. Commr., Kimbrell v. Commr., Paymer v. Commr.]|[date added: 2023-09-02] appellate 1963 Toscano v. Commr., 441 F.2d 930 (9th Cir. 1971) Fraud on the court properly raised where the taxpayer asserted that the court's decision sustaining the Commissioner's determination of joint deficiencies was based on tax returns on which the taxpayer's signature was either forged or made under duress.||[categories: 'criminal/fraud', 'trial procedure']|[related cases: Abatti v. Commr.]|[date added: 2023-09-02] appellate 1971 Transamerica Corp. [U.S. v.], 392 F.2d 522 (9th Cir. 1968) "An absolute requirement of detached and disinterested generosity or lack of any business purpose would tend to render ultra vires substantially all charitable contributions and thus to frustrate the Congressional intent that corporations should enjoy such deductions."||[categories: '170', 'charitable contributions', 'corporations']|[related cases: ]|[date added: 2023-09-02] appellate 1968 Twenty Mile Joint Venture Ltd. v. Commr., 200 F.3d 1268 (10th Cir. 1999) Substance prevailed over form where form did not reflect the "reality of the situation".||[categories: 'substance over form']|[related cases: ]|[date added: 2023-09-02] appellate 1999 Tyler v. Tomlinson, 414 F.2d 844 (5th Cir. 1969) Notes ​​‌‌‌‌​‍​​​‌‌‌‌‍​​‌​​‌​which contained "no enforcement provisions, no specific maturity dates, and no sinking fund from which payments of interest and principal might be made" were more appropriately characterized as equity instruments.||[categories: '385', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] appellate 1969 Ullman v. Commr., 264 F.2d 305 (2d Cir. 1959) "[I]t is well established that an amount a purchaser pays to a seller for a covenant not to compete in connection with a sale of a business is ordinary income to the covenantor[.]"||[categories: '61', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1959 Underwood v. Commr., 535 F.2d 309 (5th Cir. 1976) Exchange of notes relating to funds lent by a C corporation to an S corporation is insufficient to establish an economic outlay which increases the shareholder's adjusted basis.||[categories: '1361', 'S corporations', 'basis', 'corporations']|[related cases: ]|[date added: 2023-09-02] appellate 1976 United Parcel Service of America Inc. v. Commr., 254 F.3d 1014 (11th Cir. 2001) "[K]irchman, which is binding in this circuit, * * * explicitly refuses to examine subjective intent if the transaction lacks economic effects."||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2001 Urban v. Commr., 964 F.2d 888 (9th Cir. 1992) The Commissioner's "compliance with the IRM's requirements is not mandatory".||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 1992 Uri v. Commis- Sioner, 949 F.2d 371 (10th Cir. 1991) A mere guaranty does not create basis because it was not a "contribution[] of cash or other property".||[categories: 'basis', 'corporations']|[related cases: ]|[date added: 2023-09-02] appellate 1991 Valero Energy Corp. v. U.S., 569 F.3d 626 (7th Cir. 2009) "[A]dmittedly, the line between a lawyer's work and that of an accountant can be blurry, especially when it involves a large corporation like Valero seeking advice from a broad-based accounting firm like Arthur Anderson."||[categories: 'other', 'privilege']|[related cases: ]|[date added: 2023-09-02] appellate 2009 Van Scoten v. Commr., 439 F.3d 1243 (10th Cir. 2006) "[R]egardless of their level of sophistication, it was unreasonable for * * * [the taxpayers] to rely on tax professionals that they did not personally consult with, explain their unique situation to, or receive formal advice from."||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 2006 Vorsheck v. Commr., 933 F.2d 757 (9th Cir. 1991) Taxpayers who relied upon their accountant and knew nothing about tax law not liable for penalties.||[categories: 'penalties', 'reasonable cause']|[related cases: ]|[date added: 2023-09-02] appellate 1991 W.H. Hill Co. v. Commr., 64 F.2d 506 (6th Cir. 1933) Noting the importance of filing a return with the appropriate official to ensure "the prompt and orderly assessment and collection of taxes".||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1933 Wallace v. Commr., 219 F.2d 855 (5th Cir. 1955) "[I]f services have been performed by the recipients, it may well be said the presumption is that the payment is for the services and not a gift".||[categories: '61', '102', 'estate and gift taxes', 'gross income']|[related cases: ]|[date added: 2023-09-02] appellate 1955 Wal-Mart Stores Inc. v. Commr., 153 F.3d 650 (8th Cir. 1998) Having ruled that inventory shrinkage estimates are not prohibited by the Internal Revenue Code or the regulations thereunder, the court held that the Commissioner abused his discretion in changing the taxpayer's method of accounting because that method complied with GAAP, was applied consistently for both tax and financial accounting purposes, and produced accurate results.||[categories: '446', 'accounting methods']|[related cases: ]|[date added: 2023-09-02] appellate 1998 Ward v. Commr., 784 F.2d 1424 (9th Cir. 1986) Policies directed at governing IRS conduct are not mandatory.||[categories: 'authorities']|[related cases: ]|[date added: 2023-09-02] appellate 1986 Waring v. Commr., 412 F.2d 800 (3d Cir. 1969) Statements in a tax return signed by the taxpayer are admissions unless overcome by cogent evidence that they are wrong.||[categories: 'returns and amended returns']|[related cases: ]|[date added: 2023-09-02] appellate 1969 Warner v. Commr., 526 F.2d 1 (9th Cir. 1975) "The Commissioner, confronted by millions of returns and an economy which repeatedly must be nourished by quick refunds, must first pay and then look. this necessity cannot serve as the basis of an 'estoppel.'"||[categories: 'estoppel']|[related cases: ]|[date added: 2023-09-02] appellate 1975 Watts [Estate of] v. Commr., 823 F.2d 483 (11th Cir. 1987) The hypothetical buyer and the hypothetical seller each seek to maximize his or her profit from any transaction involving the property.||[categories: 'fair market value']|[related cases: ]|[date added: 2023-09-02] appellate 1987 Weingarden v. Commr., 825 F.2d 1027 (6th Cir. 1987) Interpreting "redundant, ambiguous, and opaque nature" of the statute in the taxpayer's favor.||[categories: 'statutory construction']|[related cases: Gould v. Gould, Royal Caribbean Cruises Ltd. v. U.S.]|[date added: 2023-09-02] appellate 1987 Westbrook v. Commr., 68 F.3d 868 (5th Cir. 1995) A taxpayer must establish that he or she engaged in the activity with the primary purpose and intent of realizing an economic profit independent of tax savings.||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 1995 Williams v. Commr., 627 F.2d 1032 (10th Cir. 1980) Repayment of taxpayer notes in stockholder control situation not made until after taxpayers were aware that their returns were to be audited, thus constituting a mere formalism of no great significance.||[categories: '385', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] appellate 1980 Williams v. Mcgowan, 152 F.2d 570 (2d Cir. 1945) Capital asset status of the assets of a business sold shortly after the partnership conducting the business was terminated must be determined on an asset by asset basis.||[categories: '1221', 'capital vs. ordinary']|[related cases: ]|[date added: 2023-09-02] appellate 1945 Wilshire & Western Sandwiches Inc. v. Commr., 175 F.2d 718 (9th Cir. 1949) No adverse inference should be drawn from a party's failing to demand payment immediately when due from a related party.||[categories: '385', 'corporations', 'debt vs. equity']|[related cases: ]|[date added: 2023-09-02] appellate 1949 Wilson [U.S. v.], 118 F.3d 228 (4th Cir. 1997) Listing "a substantial tax deficiency" among the elements of a violation of section 7201.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1997 Wilson [U.S. v.], 118 F.3d 228 (4th Cir. 1997) Evidence of defendant-attorney's efforts to assist client in concealing assets from IRS sufficient to support conviction under sec. 7201.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1997 Winn-Dixie Stores Inc. v. Commr., 254 F.3d 1313 (11th Cir. 2001) "[T]he [sham-transaction] doctrine has few bright lines, but it is clear that transactions whose sole function is to produce tax deductions are substantive shams."||[categories: 'economic substance']|[related cases: ]|[date added: 2023-09-02] appellate 2001 Wolfe v. U.S., 570 F.2d 278 (8th Cir. 1978) Beauticians were employees, taking into account, among other factors, a percentage-basis leasing arrangement.||[categories: '3121', 'wages/employees']|[related cases: ]|[date added: 2023-09-02] appellate 1978 Xerox Corp. v. U.S., 41 F.3d 647 (Fed. Cir. 1994) “Unless it is impossible to do so, treaty and law must stand together in harmony.”||[categories: '894', 'international', 'treaties']|[related cases: ]|[date added: 2023-09-02] appellate 1994 Yarbro v. Commr., 737 F.2d 479 (5th Cir. 1984) An abandonment of real property subject to a nonrecourse debt was an exchange; i.e., an act of giving one thing in return for another thing regarded as equivalent.||[categories: '1001', 'sale or exchange']|[related cases: ]|[date added: 2023-09-02] appellate 1984 Zackim v. Commr., 887 F.2d 455 (3d Cir. 1989) Reversing the Tax Court for looking beyond the statute to a Senate report when the language of the statute is clear.||[categories: 'statutory construction']|[related cases: ]|[date added: 2023-09-02] appellate 1989 Zell v. Commr., 763 F.2d 1139 (10th Cir. 1985) Taxpayer's open defiance of tax laws helped establish his intent to commit tax fraud.||[categories: 'criminal/fraud']|[related cases: ]|[date added: 2023-09-02] appellate 1985