Justia Tax Law Opinion Summaries

Bruce A. Hauptman, an investment consultant, sought judicial review of the Commissioner's notices of determination permitting a levy to collect Hauptman’s unpaid income tax liabilities for tax years 1992 through 1996. The tax court upheld the IRS’s determinations. The court rejected Hauptman’s challenge to the tax court’s jurisdiction where Hauptman cites to no authority to support his claim that there are additional requirements before a tax court can exercise jurisdiction over supplemental notices. The court agreed with the tax court’s conclusion that the Office of Appeals did not abuse its discretion when it rejected Hauptman’s offer-in-compromise based on its well-supported findings that Hauptman had not complied with his income tax obligations, that he had not fully disclosed his financial circumstances during the collection due process proceedings, and that he had not prioritized payment of his tax liabilities. Accordingly, the court affirmed the judgment. View "Hauptman v. Commissioner" on Justia Law

The IRS disallowed all deductions and losses reported by RJT on its 2001 partnership return. It also determined that a 40-percent accuracy-related penalty for gross misstatement of partnership basis would be applied to any underpayment of tax by RJT partners resulting from the adjustments made to the RJT partnership return. RJT and Thompson challenged these adjustments in a partnership-level proceeding before the Tax Court, but the adjustments, including imposition of the penalty, were affirmed by the Tax Court and by this court on appeal. Then the Thompsons filed a petition in the Tax Court to challenge both the tax deficiency and the penalty. The IRS contends that the Thompsons are prohibited from challenging the Tax Court’s jurisdiction over the penalty issue under the law-of-the-case doctrine. The court affirmed the judgment, concluding that the Tax Court did not err by dismissing the penalty issue for lack of jurisdiction. View "Thompson v. Commissioner" on Justia Law

About five hours prior to filing for bankruptcy, debtor received an income tax refund for her federal and state income taxes, including an earned income tax credit (EIC). The bankruptcy court exempted some of debtor’s 2012 income tax refund, but denied her claimed exemption of the EIC under Mo. Rev. Stat. 513.430.1(10)(a), requiring her to turn over the nonexempt portion. The court determined that the language of section 513.430.1(10)(a) does not exempt “public assistance benefit[s]” received by the debtor prior to filing for relief in bankruptcy court. In this case, the parties do not dispute that debtor received the EIC prior to filing for bankruptcy. Therefore, the district court correctly affirmed the bankruptcy court's judgment. View "Dittmaier v. Sosne" on Justia Law