2025-12-01
In November 2025, the Tax Court published 18 opinions, which included a total of 400 pages. Below are graphs for the month showing: (i) the top 15 code sections referenced, (ii) cases cited 7 or more times, (iii) the number of opinions by judge, and (iv) the number of pages by judge.
I am always interested in learning well-established tax principles. Often, court cases will explicitly indicate that a tax principle is well established or well settled. Or the court may concisely state the holding of a prior case in a parenthetical. Below are excerpts from the November 2025 Tax Court cases referring to these types of principles or holdings.
Apache Corporation v. Commr., 165 T.C. No. 11 (2025). (Toro)
The Dictionary Act makes clear that "words importing the singular include and apply to several persons, parties, or things" unless context indicates otherwise. 1 U.S.C. § 1; see also Niz-Chavez v. Garland, 593 U.S. 155, 164-65 (2021) ("Suppose a statute made it a crime to vandalize 'a' bank. Under the Dictionary Act, someone who vandalizes five banks could not avoid prosecution on the ground that he vandalized more than one.")
Apache Corporation v. Commr., 165 T.C. No. 11 (2025). (Toro)
Plumb v. Commissioner, 97 T.C. 632, 640 (1991) ("[A] taxpayer who attempts to make an election that is not legally available to him will be treated as having made no election . . . .")
Harris v. Commr., T.C. Memo. 2025-113. (Weiler)
Harwood v. Commissioner, T.C. Memo. 2022-8, at *13 ("As a general rule, a cash basis taxpayer deducts expenses for the year of payment.")
Nelson v. Commr., T.C. Memo. 2025-117. (Urda)
Scholz v. Commissioner, T.C. Memo. 2015-2, at *8 ("When an [Appeals officer] gives a taxpayer an adequate period of time in which to respond, it is not an abuse of discretion for the [Appeals officer] to move ahead after encountering radio silence from the taxpayer.")
Okoli v. Commr., T.C. Memo. 2025-119. (Guider)
Further, this Court has routinely held that an Appeals officer does not abuse her discretion when she rejects an [installment agreement] because a taxpayer refuses to liquidate assets to satisfy his tax liabilities.
Paul-Adams Quarry Trust, LLC v. Commr., T.C. Memo. 2025-112. (Toro)
Estate of Rabe v. Commissioner, T.C. Memo. 1975-26 ("[A] prudent man will pay no more for a given property than he would for a similar property.")
Patel v. Commr., 165 T.C. No. 10 (2025). (Jones)
O'Gilvie v. United States, 519 U.S. 79, 83 (1996) (noting that phrases "on account of," "by reason of," and "because of" have the same meaning)
Patel v. Commr., 165 T.C. No. 10 (2025). (Jones)
Nat'l Oilseed Processors Ass'n v. OSHA, 769 F.3d 1173, 1184 (D.C. Cir. 2014) (observing that courts generally decline "to consider an argument if a party buries it in a footnote and raises it in only a conclusory fashion")
Patel v. Commr., 165 T.C. No. 10 (2025). (Jones)
Neonatology Assocs., P.A. v. Commissioner, 299 F.3d 221, 234 (3d Cir. 2002) ("When, as here, a taxpayer is presented with what would appear to be a fabulous opportunity to avoid tax obligations, he should recognize that he proceeds at his own peril.")
Patel v. Commr., 165 T.C. No. 10 (2025). (Jones)
We have held that a taxpayer cannot reasonably rely in good faith on an adviser who is a "promoter" of the disputed transaction. * * * A promoter is "an adviser who participated in structuring the transaction or is otherwise related to, has an interest in, or profits from the transaction." 106 Ltd. v. Commissioner, 136 T.C. 67, 79 (2011) (quoting Tigers Eye Trading, LLC v. Commissioner, T.C. Memo. 2009-121), aff’d, 684 F.3d 84 (D.C. Cir. 2012).
Patel v. Commr., 165 T.C. No. 10 (2025). (Jones)
Courts have long held that sophisticated taxpayers must recognize that when a transaction offers "fabulous" tax benefits, they are proceeding at their own peril and the transaction may be "too good to be true." Stobie Creek Invs., LLC v. United States, 82 Fed. Cl. 636, 716 (2008) (citation omitted), aff'd, 608 F.3d 1366 (Fed. Cir. 2010).
Schwarz v. Commr., T.C. Memo. 2025-122. (Goeke)
Golanty v. Commissioner, 72 T.C. 411, 427 (1979) ("A record of . . . large losses over . . . many years is persuasive evidence that the [taxpayer] did not expect to make a profit.")
Schwarz v. Commr., T.C. Memo. 2025-122. (Goeke)
The parties agree that the holding in Strode [v. Commr., T.C. Memo. 2015-117] regarding the validity of Treasury Regulation § 1.183-2(b) is not entitled to stare decisis because Strode is a memorandum opinion. See Newman v. Commissioner, 68 T.C. 494, 502 n.4 (1977) (stating that memorandum opinions are "not controlling precedent")
In November 2025, the IRS published 11 Announcements, Notices, Revenue Procedures, and Revenue Rulings, which included a total of 147 pages.
In November 2025, the IRS published 53 Written Determinations, which included a total of 302 pages. Although the IRS initially published PLR 202547011, this PLR is no longer found on the IRS website. Therefore, this PLR has not been included in the analysis below.
