Tax Court In Brief | Scheider v. Comm'r | Deficiency For Unreported Income; Burdens Of Proof

Published date17 October 2022
Subject MatterLitigation, Mediation & Arbitration, Tax, Trials & Appeals & Compensation, Income Tax, Tax Authorities
Law FirmFreeman Law
AuthorFreeman Law

The Tax Court in Brief - October 10th - October 14th, 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 October 10th, 2022, through October 14th, 2022

  • Cochran v. Comm'r, 159 T.C. No. 4 | October 12, 2022 | Greaves, J. | Dkt. No 21002-16
  • Clark Raymond & Company, PLLC v Comm'r, T.C. Memo. 2022-105 | October 13, 2022 | Gustafson, J | Dkt. No. 2265-19 (partnership intangible assets, substantial economic effect, capital accounts, distributions, tests for economic effect and Treas. Reg. ' 1.704-1)

Scheider v. Comm'r, T.C. Memo. 2022-104 | October 11, 2022 | Urda, J. | Dkt. No. 4048-20

Summary: Craig Schieder challenged a notice of deficiency issued by the IRS that determined a deficiency of $30,963 in his federal income tax for his 2017 tax year as well as an addition to tax under section 6651(a)(1) of $2,925. Schieder worked as a recreational vehicle (RV) salesperson for Colton Auto, Inc. (Colton), selling RVs manufactured by various companies. Schieder earned $139,448 from Colton, as well as assorted payments from several other companies. Schieder filed a federal income tax return for 2017 that was dated November 20, 2018. He claimed a refund of $17,965, reporting no income and itemized deductions of $8,782. He included a pay stub from Colton and Forms 1099-MISC, Miscellaneous Income, from the other companies. He also attached Forms 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., relating to each company, on which he represented that he had not received wages within the meaning of the Internal Revenue Code. Schieder claimed that the payments he received from the various companies neither constituted wages nor gains, profit, or income within the meaning of relevant law. Schieder presented what he claimed was the law on the subject. The IRS issued the notice of deficiency and penalty for the late filing of the return. In its notice the IRS increased Schieder's taxable income to an amount based primarily upon the recognition of income from Colton and from one of the other companies. In the Tax Court proceeding, the IRS asserted an increased deficiency based upon...

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