Taxpayers who refused to meet with IRS Appeals to contest their penalty liability were thereby precluded from doing so in a Collection Due Process or Tax Court proceeding, the court held.
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Appeals & Tax Court Petitions
IRS appeals Kwong as advocate says refunds may be at stake
The IRS filed an appeal of the Court of Federal Claims’ Kwong decision, in which the court held that the filing deadline for refund claims for penalties and interest was automatically extended by Sec. 7508A(d) due to the COVID-19 disaster declaration.
IRS announces terms of new conservation easement settlement opportunity
The terms of the new, time-limited settlement opportunity include the type and amount of deduction that eligible taxpayers will be allowed and the penalty rate that will apply.
Right to jury trial does not apply to accuracy-related penalties
Seventh Amendment right to jury trial does not apply to Sec. 6663 accuracy-related penalties.
Penalties under codified economic substance doctrine upheld
The taxpayers’ deductions from microcaptive insurance transactions lacked economic substance under Sec. 7701(o), the Tax Court held, upholding a Sec. 6662(b)(6) underpayment penalty.
Refund suit dismissed because Flora full-payment rule not met
Debts discharged in bankruptcy not fully paid for purposes of the Flora full-payment rule.
IRS met written-supervisory-approval requirement for penalty
Sec. 6752(1)(b) was satisfied by an IRS supervisor’s timely signed approval of penalties against the taxpayer, without any “meaningful review” or “reasoned decision-making,” the Tax Court held.
Murrin and Zuch provide insight into the limits of taxpayers’ rights
Taxpayers, such as those in Zuch and Murrin, can face unique circumstances where the law overrides their intentions.
Sec. 30D credit not allowed in 2019 for vehicle purchased in 2013
A Sec. 30D credit was denied because a vehicle was not placed in service in the year the credit was claimed.
Preparer’s intent to evade tax extends taxpayer’s limitation period
‘Intent to evade tax’ can be the intent of a taxpayer’s tax return
preparer.
Second Circuit: Sec. 6213(a) is nonjurisdictional; tolling applies
Second Circuit holds Sec. 6213(a) deadline is nonjurisdictional.
The ongoing fight against frivolous tax arguments
Taxpayers who make frivolous arguments in Tax Court risk the imposition of penalties by the court of up to $25,000.
Estate of McKelvey highlights potential tax pitfalls of variable prepaid forward contracts
A taxpayer’s extension of variable prepaid forward contracts resulted in a constructive sale and a termination of obligations that gave rise to taxable gain, the Tax Court held.
Equitable tolling does not apply to excuse late filing of petition
On remand from the Eighth Circuit and after the Supreme Court held in the case that the Sec. 6330(d)(1) period for filing a Tax Court petition for a review of a Collection Due Process determination is nonjurisdictional, the Tax Court denied equitable tolling of the deadline.
Company’s $1.6 billion ‘break fee’ payment treated as ordinary deduction
A proposed merger agreement’s rights and obligations were in the nature of services, so a fee paid to terminate was not treated as a capital loss, the Tax Court held.
Tax Court addresses dueling motions to dismiss
The court granted the IRS’s motion because the petition was untimely and denied the taxpayer’s contending that the Service’s deficiency notices were invalid.
‘Garden variety’ mistake does not give rise to equitable tolling
Although the deadline for filing a challenge to an IRS employment status determination is nonjurisdictional, an employer’s facts did not warrant equitable tolling, the Tax Court held.
Handwritten signature not needed on electronically generated petition
A handwritten signature was not required on a petition filed with the Tax Court that was created on the court’s online petition generator.
Tax Court again holds Sec. 6038(b)(1) penalties not assessable
Reconsidering its earlier holding in the case, the court again held the IRS lacks statutory authority to assess the penalties for failing to file information returns disclosing ownership in foreign corporations.
Taxpayer denied theft loss deduction for investment loss
The Tax Court focused on the taxpayer’s role as president and managing director of the company in which he invested, along with his failure to prove a theft occurred.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
