Tax Court In Brief | Ashford V. Comm'r | Unreported Income, Additions To Tax, Frivolous Arguments, Taxable Income

Published date04 October 2022
Subject MatterTax, Income Tax, Tax Authorities
Law FirmFreeman Law
AuthorFreeman Law

The Tax Court in Brief - September 26th - September 30th, 2022

Freeman Law's "The Tax Court in Brief" covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

For a link to our podcast covering the Tax Court in Brief, download here or check out other episodes of The Freeman Law Project.

Tax Litigation: The Week of September 26th, 2022, through September 30th, 2022

  • Patitz, Moody v. Comm'r, T.C. Memo 2022-99 | September 27, 2022 | Weiler, J. | Dkt No. 2784-19
  • Powell and Iakovenko v. Comm'r, T.C. Summary Opinion, 2022-19 | Sept. 26, 2022 | Copeland, J. | Docket No 20268-19S
  • Powell and Iakovenko v. Comm'r, T.C Summary Opinion, 2022-19 | Copeland, J. | Docket No 20268-19S
  • Furrer v. Comm'r, T.C. Memo. 2022-100| September 28, 2022 | Lauber, Judge | Dkt. No. 7633-19
  • Collins v. Comm'r, T.C. Summary Opinion 2022-20| September 29, 2022 | Paris, Judge | Dkt. No. 14017-17S

Ashford v. Comm'r, T.C. Memo. 2022-101| September 29, 2022 | Vasquez, Judge | Dkt. No. 17590-18, 2492-19 (Consolidated)

Summary: During taxable years 2013 and 2014 petitioner performed services for Aviation Managed Solutions, Inc. (AMS), and served in the Air National Guard. AMS paid petitioner $89,977 and $98,565 in 2013 and 2014, respectively, and reported those amounts on Forms 1099- MISC. Petitioner also received wages of $5,924 and $6,380 in 2013 and 2014 from the Department of the Air Force. The Air Force reported those amounts on Forms W-2. In 2013 petitioner received $4,300 from an individual retirement account, which reported the distribution on Form 1099-R. Petitioner was under the age of 59-1/2 in 2013. Although he filed an income tax return for 2012, petitioner did not do so for 2013 or 2014. So, the IRS prepared substitutes for returns (SFRs) on the basis of third-party reporting. See 26 U.S.C. ' 6020(b). The IRS issued notices of deficiency for 2013 and 2014, determining that petitioner had taxable income, scheduled in the opinion. The notices of deficiency also include determinations that petitioner is liable for self-employment tax on the nonemployee compensation he received for the years in issue. And, with respect to petitioner's 2013 retirement distribution, the IRS determined a 10% additional tax under section 72(t). Petitioner timely petitioned the Tax Court. The matters were consolidated for trial, briefing, and opinion. Before trial petitioner filed a Pretrial Memorandum, in which he advanced frivolous arguments. He...

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