Tax Court In Brief | Vassiliades v. Comm'r | Deficiency For Disallowed American Opportunity Credit

• Jurisdiction: United States,Federal
• Law Firm: Freeman Law
• Subject Matter: Consumer Protection, Tax, Education, Income Tax, Tax Authorities
• Author: Freeman Law
• Published date: 18 January 2023

Tax Litigation: The Week of January 9th, 2022, through January 13th, 2023

• Simpson v. Comm'r, T.C. Memo. 2023-4| January 9, 2023 | Jones, J. | Dkt. No. 16923-16
• Wondries v. Comm'r, T.C. Memo. 2023-5| January 9, 2023 | Kerrigan, J. | Dkt. No. 13345-19 (deficiencies for deduction of farm and ranch expenses evaluation of activity not engaged in for profit).
• Decrescenzo v. Comm'r, T.C. Memo 2023-7| January 12, 2023 | Halpern, J. | Dkt. No 16784-18

Vassiliades v. Comm'r, T.C. Memo. 2023-1 | January 9, 2023 | Panuthos, J. | Dkt. No. 12283-20S.

Summary: This case involves whether taxpayers are allowed to claim the American Opportunity Credit (AOC) on their federal income tax return. In 2018, the IRS disallowed the AOC claimed by John M. Vassiliades and Eliza Ortizluis Vassiliades (Vassiliades) on their 2018 federal income tax return. Mr. Vassiliades has a daughter (AM) from a prior relationship, who lived in London and was enrolled in postsecondary education at the University College London (UCL). Mr. Vassiliades made several wire transfers to his daughter in an account in the UK to pay for school tuition, fees, and other expenses. Vassiliades claimed AM as a dependent in their 2018 tax return. Additionally, under Form 8863 Education Credits they claimed the AOC, consisting of a refundable education credit and a refundable credit regarding qualified education expenses paid during AM's enrollment at UCL for 2018. However, Vassiliades did not receive a Form 1098-T, Tuition Statement, from the University for such year. The IRS determined that Vassiliades failed to prove that they paid qualified expenses during 2018 and disallowed them the AOC claimed. Vassiliades to substantiate AM's education expenses provided receipts of various wire transfers made to AM, including currency conversions, and a receipt for an online payment made to UCL in 2017. However, the UCL receipt provided by Vassiliades to the Tax Court was for 2017 and the payment was made by a third party (the mother of AM). Mr. Vassiliades testified that he did not have a tuition receipt for 2018 because he suffered a home burglary in November 2018 and several important documents were missing. However, the Tax Court determined that from the record provided by Vassiliades, it was unable to conclude that they paid the qualified tuition and related expenses to UCL in 2018. Therefore, the Tax Court considered that Vassiliades failed to prove they were entitled to the AOC for 2018, and found their arguments...