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Top 8 Appellate Court Cases Cited by the Tax Court


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Below is a table of the top 8 appellate court opinions most frequently cited by the Tax Court (from 1995 to 2023). The table includes the numbers of times cited and a brief description of what principle or principles the case is frequently cited for.

Case Times Cited Principle Frequently Cited For
Sundstrand Corp. v. Commr., 98 T.C. 518 (1992), affd. 17 F.3d 965 (7th Cir. 1994). 640 [Summary judgment may be granted with respect to all or any part of the legal issues in controversy "if the pleadings, answers to interrogatories, depositions, admissions, and any other acceptable materials, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that a decision may be rendered as a matter of law." ]

[The moving party, however, bears the burden of establishing that no genuine issue exists as to any material fact.]
Cohan v. Commr., 39 F.2d 540 (2d Cir. 1930). 538 [If certain claimed deductions are not adequately substantiated, the court is permitted to estimate them, provided the court is convinced from the record that the taxpayer has incurred such expenses and the court has a basis upon which to make an estimate.]
Neonatology Associates, P.A. v. Commr., 115 T.C. 43 (2000), affd. 299 F.3d 221 (3d Cir. 2002). 411 [To prove reasonable cause due to reliance on the advice of a tax adviser, the taxpayer must prove by a preponderance of the evidence that (i) the adviser was a competent professional who had sufficient expertise to justify the taxpayer's reliance on him, (ii) the taxpayer provided necessary and accurate information to the adviser, and (iii) the taxpayer actually relied in good faith on the adviser's judgment.]

[We will not accept the testimony of witnesses at face value to the extent we perceive the testimony to be incredible or otherwise unreliable.]
Golsen v. Commr., 54 T.C. 742 (1970), affd. 445 F.2d 985 (10th Cir. 1971). 354 [The Tax Court is obligated to follow the law as stated by the Court of Appeals in the circuit to which the case is appealable.]
Murphy v. Commr., 125 T.C. 301 (2005), affd. 469 F.3d 27 (1st Cir. 2006). 354 [The court reviews the appeals officer's rejection of an offer-in-compromise to decide whether the rejection was arbitrary, capricious, or without sound basis in fact or law and therefore an abuse of discretion.]

[In reviewing for abuse of discretion, we review the reasoning underlying the settlement officer's determination to decide whether it was arbitrary, capricious, or without sound basis in fact or law.]
Dileo v. Commr., 96 T.C. 858 (1991), affd. 959 F.2d 16 (2d Cir. 1992). 302 [When a taxpayer keeps no books or records and has large bank deposits, the Commissioner is not arbitrary or capricious in resorting to the bank deposits method.]

[Whether fraud exists in a given situation is a factual determination that must be made after reviewing the particular facts and circumstances of the case.]

[In determining whether a corporation is liable for the negligence penalty, the acts of officers on behalf of the corporation are imputed to the corporation.]

[A taxpayer is collaterally estopped from denying civil tax fraud when convicted of criminal tax evasion under section 7201 for the same taxable year.]
Bradford v. Commr., 796 F.2d 303 (9th Cir. 1986), affg. T.C. Memo. 1984-601. 263 [Badges of fraud (circumstantial evidence that may give rise to a finding of fraudulent intent) include: (1) understating income; (2) keeping inadequate or no records; (3) failing to file tax returns; (4) maintaining implausible or inconsistent explanations of behavior; (5) concealing assets; (6) failing to cooperate with tax authorities; (7) filing false Forms W-4; (8) failing to make estimated tax payments; (9) dealing in cash; (10) engaging in illegal activity; and (11) attempting to conceal an illegal activity.]
Hradesky v. Commr., 65 T.C. 87 (1975), affd. per curiam 540 F.2d 821 (5th Cir. 1976). 218 [The taxpayer bears the burden of proving that he is entitled to any deduction claimed. This includes the burden of substantiation.]
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