United States | Publication | August 2023
|
Case |
Court |
Primary Issue(s) |
Status/Result |
Lawyer(s) |
|---|---|---|---|---|
|
Diamond Offshore Drilling, Inc. v. United States |
Southern District of Texas |
Entitlement to foreign tax credit and statute of limitation issues |
Pending |
|
|
Roseta v. Commissioner |
Tax Court |
Whether the taxpayer received a taxable distribution |
Government conceded |
|
|
Noble Drilling Corporation v. |
Southern District of Texas |
Entitlement to foreign tax credit for foreign taxes paid to Mexico and other foreign jurisdictions |
Settled |
|
|
HP Inc. v. United States |
Court of Federal Claims |
Overpayment interest |
Government conceded |
|
|
Delek US Holdings, Inc. v. United States of America 32 F. 4th 495 (6th Cir. 2022) |
Sixth Circuit Court of Appeals |
Income tax treatment of Section 6426 alcohol and biodiesel mixture credits |
Judgment affirmed |
|
|
JSB Montana, Inc. v. Commissioner and 12 related cases |
Tax Court |
Whether IRS Appeals could consider consolidated or "test case" settlement of related Collection Due Process cases |
Pending |
|
|
Delek US Holdings, Inc. v. United States of America 127 AFTR 2d 2021-641 (M.D. Tenn. 2021) |
Middle District of Tennessee |
Income tax treatment of Section 6426 alcohol and biodiesel mixture credits |
Judgment for government |
|
|
Lorance & Thompson, A Professional Corporation v. Commissioner |
Tax Court |
Excise taxes and failure-to-file and failure-to-pay penalties with respect to a terminated defined benefit pension plan |
Government conceded two of three years; settled third year |
|
|
Baker Hughes Incorporated v. United States of America 943 F.3d 255 (5th Cir. 2019) |
Fifth Circuit Court of Appeals |
Whether payment to a foreign subsidiary qualifies for either a bad debt deduction or ordinary and necessary business expense |
Judgment affirmed |
|
|
United States v. Rao Desu |
District of New Jersey |
Conspiracy of tax evasion for cash skim from two independently owned pharmacies. |
Judgment for government |
|
|
The Diversified Group Incorporated, et al. v. Commissioner |
Tax Court |
In Collection Due Process cases, whether taxpayers may dispute liability for penalties under pre-2004 section 6707; penalty approval under section 6751(b) |
Pending |
|
|
Estate of Abraham Damast, Deceased, Gary Damast, Adrienne D. Wilson, Executors and Donald A. Damast, Administrator CTA v. Commissioner |
Tax Court |
Estate and gift taxes in connection with sale of receivables from split dollar life insurance transactions; accuracy-related penalties |
Settled |
|
|
Jacques E. Bouchez and Cristina C. Bouchez v. United States |
Southern District of Texas |
Whether revisions to ending inventory and cost of goods sold were an unauthorized accounting method change |
Government conceded legal issue; settled calculation issues |
|
|
Individual who was the co-owner of a pharmacy and was the target of a federal criminal tax grand jury investigation |
U.S. Attorney's Office for the District of New Jersey |
Tax evasion resulting from multi-year cash skim from pharmacy business |
Declination of charges |
|
|
Nickowski v. Commissioner |
Tax Court |
Whether amounts received by the taxpayer were taxable as divided income |
Settled |
|
|
1 Your Front Desk Service, Inc. v. Commissioner |
Tax Court |
Whether the IRS could increase the amount of sales reported by the company, plus miscellaneous other issues |
Settled |
|
|
The Diversified Group Incorporated and James Haber v. United States 841 F.3d 975 (Fed. Cir. 2016) |
Federal Circuit Court of Appeals |
Whether pre-2004 section 6707 penalties are divisible taxes and thus subject to Court of Federal Claims' jurisdiction |
Judgment affirmed |
|
|
James Haber v. United States 823 F.3d 746 (2d Cir. 2016) |
Second Circuit Court of Appeals |
Validity of IRS summons issued while a Justice Department referral was in effect; whether summons was in aid of collection |
Judgment affirmed |
|
|
BRC Operating Company v. Commissioner of Internal Revenue |
Tax Court |
Validity of Treasury Regulations extending the economic performance requirement to cost of goods sold; accuracy-related penalties and penalty approval under section 6751(b); whether taxpayer may claim deduction for accrued expenditures |
Trial pending on deduction issues; IRS conceded penalty issue as part of settlement |
|
|
Bluescape Resources Company v. Commissioner of Internal Revenue |
Tax Court |
(1) Validity of Treasury Regulations extending the economic performance requirement to cost of goods sold, (2) worthlessness deductions for leases; (3) availability of mark-to-market method of accounting; (4) accuracy-related penalties, (5) penalty approval under section 6751(b); and (6) whether taxpayer may claim deduction for accrued expenditures |
Trial pending on deduction issues; settled worthlessness, mark-to-market, and penalty issues |
|
|
Baker Hughes Incorporated v. United States of America 121 AFTR 2d 2018-2113 (S.D. Tex. 2018) |
Southern District of Texas |
Whether payment to a foreign subsidiary qualifies for either a bad debt deduction or ordinary and necessary business expense |
Judgment for government |
|
|
ADAMS Challenge (UK) Limited v. Commissioner of Internal Revenue 154 T.C. No. 3 (2020) |
Tax Court |
Whether a foreign company (1) has income connected with a U.S. trade or business or permanent establishment, and (2) is entitled to deductions and credits under a Tax Treaty; validity of Treasury Regulations requiring foreign corporations to file a tax return by a date certain to claim deductions |
Judgment for government |
|
|
Barbara B. Allbritton, Individually and as Co-Executor of the Estate of Joe L. Allbritton, Deceased v. United States of America |
Southern District of Texas |
Constructive property distributions of artwork and antiques from a closely-held corporation; rental value for use of corporate properties. |
Settled |
|
|
Citizen of Panama who was the owner of an international cattle transport business and was the target of a federal criminal tax and money laundering grand jury investigation |
U.S. Attorney's Office for the Southern District of Florida |
International money laundering scheme and filing false corporate and individual returns relating to receipt of funds |
Declination of charges |
|
|
Anthony W. Wang & Lulu C. Wang v. Commissioner |
Tax Court |
Whether sales of automobiles were subject to collectible capital gains rate |
Government conceded |
|
|
Bruce L. Downey & Deborah H. Downey v. Commissioner |
Tax Court |
Valuation of LLC interests which were sold to trusts for purposes of determining gift tax liability and/or accuracy-related penalties |
Settled |
|
|
Perpetual Corporation, Inc. v. United States of America |
Southern District of Texas |
Gain from the purported distribution of artwork to a shareholder, and/or the expiration of the statute of limitations for assessment |
Government conceded |
|
|
Humboldt Shelby Holding Corporation and Subsidiaries v. Commissioner 606 F. App'x 20 (2d Cir. 2015) |
Second Circuit Court of Appeals |
Correct legal standard in analyzing the economic substance doctrine |
Judgment affirmed |
|
|
James Haber v. United States 115 A.F.T.R. 2d 2015-2221 (S.D.N.Y. 2015) |
Southern District of New York |
Validity of IRS summons issued while a Justice Department referral was in effect; whether summons was in aid of collection |
Judgment for government; taxpayer appealed |
|
|
ADAMS Offshore Services, Ltd. v. Commissioner of Internal Revenue |
Tax Court |
Whether a foreign company (1) has income connected with a U.S. trade or business or permanent establishment, and; (2) timely filed its Tax Court petition outside of the general 150-day filing period |
Judgment for taxpayer on timely filing issue; Government conceded the U.S. trade or business / permanent establishment issues |
|
|
Kathy S. Hodge v. Commissioner of Internal Revenue |
Tax Court |
Economic development credits, residency issues, and/or penalties |
Settled residency issue; government conceded penalty issue as part of settlement |
|
|
Jim C. Hodge v. Commissioner of Internal Revenue |
Tax Court |
Economic development credits, residency issues, and/or penalties |
Settled residency issue; government conceded penalty issue as part of settlement |
|
|
Steven A. Carr v. Commissioner |
Tax Court |
Taxability of disbursements received in connection with estate administration |
Government conceded |
|
|
The Diversified Group Incorporated and James Haber v. United States 123 Fed. Cl. 442 (2015) |
Court of Federal Claims |
Whether pre-2004 section 6707 penalties are divisible taxes and thus subject to Court of Federal Claims' jurisdiction |
Judgment for government; case appealed |
|
|
Robert L. Allbritton and Elena H. Allbritton v. Commissioner of Internal Revenue |
Tax Court |
Fair rental value of property |
Settled |
|
|
Benjamin and Sharon Soleimani v. Commissioner |
Tax Court |
Appropriateness of tax losses due arising from the expropriation of property by Iranian government. |
Pending |
|
|
James Haber, Transferee v. Commissioner |
Tax Court |
Transferee liability and alter ego or agent |
Settled |
|
|
Gerdau Macsteel Inc. and Affiliated Subsidiaries v. Commissioner |
Fifth Circuit Court of Appeals |
Whether corporate restructuring transactions involving assumption of contingent liabilities resulted in capital losses; accuracy-related penalties |
Settled |
|
|
Estate of Harold N. Carr, Deceased, Steven Addison Carr, Independent Executor, v. Commissioner of Internal Revenue |
Tax Court |
Valuation of oil and gas producing properties |
Settled |
|
|
Crescent Holdings LLC, Arthur W. & Joleen H. Fields, A Partner Other Than the Tax Matters Partner v. Commissioner 141 T.C. 477 (2013) |
Tax Court |
Whether an individual should be treated as a partner for purposes of allocating partnership items (represented tax matters partner) |
Split decision |
|
|
MT Avenue Investor Partners, MJT Park Investors, Inc., Tax Matters Partner v. Commissioner et al. |
Tax Court |
Whether taxpayers are liable for accuracy-related penalties with respect to partnership transactions involving swaps and options |
Settled |
|
|
Merck & Co,. Inc. v. United States 652 F.3d 475 (3d Cir.2011) |
Third Circuit Court of Appeals |
Whether (1) a transaction can be recharacterized as a loan under the economic substance doctrine, step-transaction doctrine, or substance over form doctrine, and (2) the IRS had impermissibly discriminated against a taxpayer by denying it equal treatment with another taxpayer |
Judgment affirmed |
|
|
YRC Regional Transportation Inc. and Subsidiaries f.k.a. USF Corporation & Subsidiaries v. Commissioner |
Tax Court |
Worthless stock or debt deduction with respect to stock of a subsidiary |
Settled |
|
|
United American Housing & Education Foundation v. United States of America |
District of Columbia |
Declaratory judgment action regarding whether IRS could retroactively revoke the tax-exempt status of an entity |
Settled |
|
|
Valero Energy Corp. v. United States 569 F.3d 626 (7th Cir. 2009) |
Seventh Circuit Court of Appeals |
Tax shelter exception to section 7525 tax practitioner privilege |
Judgment affirmed |
|
|
Carol Whalen v. Commissioner |
Fifth Circuit Court of Appeals |
Whether IRS erred in failing to credit taxpayer with federal income tax withholding for amount that was remitted to IRS during tax year at issue |
Settled |
|
|
Eugene Campbell 2004 Revocable Trust, James H. Jasper, Trustee, Charles E. Campbell II Trust, James H. Jasper, Trustee, et al. v. Commissioner |
Tax Court |
Whether IRS erred in determining that upon the death of decedent direct skips occurred when assets were distributed, resulting in additional GST tax |
Settled |
|
|
Estate of Charles E. Campbell, Deceased, Judy Stark Campbell, Independent Executrix v. Commissioner |
Tax Court |
Valuation of interests in limited partnerships and limited liability companies |
Settled |
|
|
The Markell Company, Inc. v. Commissioner T.C. Memo. 2014-86 |
Tax Court |
Whether option transactions, corporate transactions, and partnership transactions lacked economic substance; accuracy-related penalties |
Judgment for government |
|
|
Vance Finance and Holding Corporation and Subsidiaries v. Commissioner |
Tax Court |
Whether option transactions, corporate transactions, and partnership transactions lacked economic substance; accuracy-related penalties |
Case dismissed on taxpayers' motion |
|
|
Valero Energy Corp. v. United States 2007 U.S. Dist. LEXIS 81526 (N.D. Ill. Aug. 23, 2007) 2008 U.S. Dist. LEXIS 105609 (N.D. Ill. Aug. 26, 2008) |
Northern District of Illinois |
IRS summons; section 7525 tax practitioner privilege and tax shelter exception |
Split decision |
|
|
Shell Petroleum Inc. v. United States 2008 U.S. Dist. LEXIS 51180 (S.D. Tex. July 3, 2008) |
Southern District of Texas |
Whether the IRS could deny losses on the grounds that a related transaction lacked a business purpose and economic substance |
Judgment for taxpayer |
|
|
HBS Investments, LLC, Humboldt Corporation, A Partner Other Than the Tax Matters Partner v. Commissioner |
Tax Court |
Validity of notice of final partnership administrative adjustment |
Case dismissed for lack of jurisdiction on unopposed motion |
|
|
Humboldt Shelby Holding Corporation and Subsidiaries v. Commissioner T.C. Memo. 2014-47 |
Tax Court |
Whether option transactions and partnership transactions lacked economic substance; accuracy-related penalties |
Judgment for government |
|
|
Schering-Plough Corp. v. United States 2007 WL 4264542 (D. N.J. Dec. 3, 2007) 651 F. Supp. 2d 219 (D. N.J. 2009) |
District of New Jersey |
Whether (1) a transaction can be recharacterized as a loan under the economic substance doctrine, step-transaction doctrine, or substance over form doctrine, and (2) the IRS had impermissibly discriminated against a taxpayer by denying it equal treatment with another taxpayer |
Judgment for government |
|
|
Ironbridge Corp. And Subsidiaries f.k.a. Pitt-Des Moines, Inc., et al. v. Commissioner |
Tax Court |
Whether option transactions, corporate transactions, and partnership transactions lacked economic substance; accuracy-related penalties |
Case dismissed on taxpayers' motion |
|
|
Carol Whalen v. Commissioner T.C. Memo. 2009-37 |
Tax Court |
Whether IRS erred in failing to credit taxpayer with federal income tax withholding for amount that was remitted to IRS during tax year at issue |
Judgment for government; case settled on appeal |
|
|
Iron Investments 2002 LLC, Ironbridge Corp., A Partner Other Than the Tax Matters Partner v. Commissioner |
Tax Court |
Validity of notice of final partnership administrative adjustment |
Case dismissed for lack of jurisdiction on unopposed motion |
|
|
MC Investments 2002 LLC, Markell Corporation, A Partner Other Than the Tax Matters Partner v. Commissioner |
Tax Court |
Validity of notice of final partnership administrative adjustment |
Case dismissed for lack of jurisdiction on unopposed motion |
|
|
VCO Investments LLC, Vance Finance and Holding Corp., A Partner Other Than the Tax Matters Partner v. Commissioner |
Tax Court |
Validity of notice of final partnership administrative adjustment |
Case dismissed for lack of jurisdiction on unopposed motion |
|
|
New Capital Fire, Inc. v. Commissioner |
Tax Court |
Whether corporate transactions failed to qualify as an F reorganization, resulting in step-up in basis for successor corporation |
Pending |
|
|
Estate of Judith J. Leftwich Calder, Deceased, Howard C. Calder, Personal Representative v. Commissioner |
Tax Court |
Estate tax marital deduction for qualified terminal interest property |
Settled |
|
|
John H. & Katherine E. Powers v. Commissioner |
Tax Court |
Disallowance of professional fees as related to transactions lacking economic substance, flow-through losses for lack of substantiation; accuracy-related penalties |
Settled |
|
|
Rebecca L. LeBlanc v. Commissioner |
Tax Court |
Disallowance of professional fees as related to transactions lacking economic substance; accuracy-related penalties |
Settled |
|
|
Lewis Nicholas Powers v. Commissioner |
Tax Court |
Disallowance of professional fees as related to transactions lacking economic substance; accuracy-related penalties |
Settled |
|
|
La Git 88 Trust, Kenneth A. Keeling, Trustee v. Commissioner |
Tax Court |
Disallowance of professional fees as related to transactions lacking economic substance; accuracy-related penalties |
Settled |
|
|
AFFCO Investments 2001, L.L.C., AFFCO L.L.C., Tax Matters Partner v. United States |
Eastern District of Louisiana |
Whether partnership and option transactions lacked economic substance; accuracy-related penalties |
Settled |
|
|
Starlike Properties, Inc. v. Commissioner |
Tax Court |
Whether option transactions lacked economic substance; accuracy-related penalties |
Settled |
|
|
Igor M. & Jeanne M. Olenicoff v. Commissioner |
Tax Court |
Whether taxpayers had unreported income; civil fraud penalties |
Settled |
|
|
HE Sargent, Inc. v. United States |
Court of Federal Claims |
Whether taxpayer owed employment taxes with respect to vehicle rental payments that it made to its employees for use of their vehicles |
Settled |
|
|
William B. & Anne H. Russell v. Commissioner |
Tax Court |
Valuation of shares of stock for gift tax purposes |
Settled |
|
|
Tiger Bay Limited Partnership, IPS Avon Park Corporation, A Partner Other Than the Tax Matters Partner v. Commissioner |
Tax Court |
Whether taxpayers' sale of power purchase agreements constituted a termination, thus ineligible for capital gains treatment; whether consent to extend period of limitations was valid |
Settled |
|
|
United States v. Jayne Taylor |
Ninth Circuit Court of Appeals |
Whether IRS summonses were overbroad, vague, and petitions to enforce brought in bad faith |
Settled |
|
|
United States v. Jayne Taylor |
Central District of California |
Whether IRS summonses were overbroad, vague, and petitions to enforce brought in bad faith |
Judgment for government; settled on appeal |
|
|
Shell Petroleum, Inc. v. United States 319 F.3d 1334 (Fed. Cir. 2003) |
Federal Circuit Court of Appeals |
Whether hydrocarbons constituted tar sands for purposes of tax credit for nonconventional fuels under section 29 |
Judgment affirmed |
|
|
Olen Residential Realty Corp., (f.k.a. The Olen Company) and Subsidiaries, et al. v. Commissioner |
Tax Court |
Disallowance of interest expense and treatment of bank deposits as income to taxpayers based on allegation that third party was foreign related party; accuracy-related penalties |
Settled |
|
|
Gerdau Macsteel Inc. and Affiliated Subsidiaries v. Commissioner 139 T.C. 67 (2012) |
Tax Court |
Whether corporate restructuring transactions involving assumption of contingent liabilities resulted in capital losses; accuracy-related penalties |
Judgment for government on tax issue, split decision on penalties; case settled on appeal |
|
|
The Diversified Group Incorporated and Subsidiaries, et al. v. Commissioner |
Tax Court |
Whether equipment rental expenses from sale-leaseback transactions were deductible as business expenses; whether the transactions lacked economic substance |
Settled |
|
|
Browning-Ferris Industries, Inc. v. United States 233 F. Supp. 2d 1223 (D. Ariz. 2002) |
District of Arizona |
Whether settlement converted investment tax credit into nonpartnership item |
Judgment for taxpayer |
|
|
Riggs National Corp. v. Commissioner 295 F.3d 16 (D.C. Cir. 2002) |
District of Columbia Circuit Court of Appeals |
Foreign tax credit for foreign withholding taxes related to Brazilian loans |
Judgment for taxpayer |
|
|
Prudential Overall Supply v. Commissioner T.C. Memo. 2002-103 |
Tax Court |
Whether the IRS abused its discretion in imposing a change of accounting method requiring taxpayer to capitalize and depreciate industrial laundry items |
Judgment for taxpayer |
|
|
Succession of Helis v. United States 88 A.F.T.R. 2d 2001-5199 (Fed. Cl. 2001) 52 Fed. Cl. 745 (2002) 56 Fed. Cl. 544 (2003) |
Court of Federal Claims |
Valuation of oil and gas partnership interest; administrative expense deductions for excess interest and executor and attorneys' fees |
Judgment for taxpayer on all issues except excess interest deduction |
|
|
Estate of Ruth Baker, Deceased, Mary E. Knowles, f.k.a. Mary Elizabeth Baker, Co-Executrix and Cody Dutton, Co-Executor v. Commissioner |
Tax Court |
Discounts for interests in family limited partnership in estate tax case |
Settled |
|
|
Laborers' International Union of North America v. Commissioner T.C. Memo. 2001-171 |
Tax Court |
Unrelated business taxable income; statute of limitations |
Judgment for taxpayer |
|
|
Shell Petroleum, Inc. v. United States 50 Fed. Cl. 524 (2001) |
Court of Federal Claims |
Whether hydrocarbons constituted tar sands for purposes of tax credit for nonconventional fuels under section 29 |
Judgment for government |
|
|
Estate of Hubbard v. Commissioner |
Tax Court |
Estate tax valuation of satellite television assets |
Settled |
|
|
Union Texas International Corp. v. Commissioner 110 T.C. 321 (1998) |
Tax Court |
Windfall profits tax: whether taxpayer was independent producer for purposes of limitations on percentage depletion; net interest limitations on calculation of tax |
Split decision |
|
|
Shell Petroleum, Inc. v. United States 996 F. Supp. 361 (D. Del. 1997) |
District of Delaware |
Whether hydrocarbons constituted tar sands for purposes of tax credit for nonconventional fuels under section 29 |
Judgment for government |
|
|
Coca-Cola Co. v. Commissioner 106 T.C. 1 (1996) |
Tax Court |
Computation of combined taxable income for purposes of credit under section 936 for operations in a U.S. possession |
Judgment for taxpayer |
|
|
TRT Holdings, Inc. v. Commissioner |
Tax Court |
Whether transaction qualified as tax free reorganization |
Settled |
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