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Shuman v. Comm'r

United States Tax Court

August 23, 2018, Filed

Docket Nos. 27857-13, 15847-14L.

Opinion

MEMORANDUM FINDINGS OF FACT AND OPINION

GALE, Judge: This proceeding involves two cases that have been consolidated for trial, briefing, and opinion. In the first, at docket No. 27857-13,  [*2]  petitioners1 seek redetermination of respondent's determination of a deficiency of $88,613 and a section 6662(a) accuracy-related penalty of $17,723 with respect to petitioners' Federal income tax for 2011.2 In the second, at docket No. 15847-14L, petitioners seek review of a determination by the Office of Appeals (Appeals) of the Internal Revenue Service (IRS) to proceed with a levy to collect $40,277 in Federal income tax that petitioners reported as due on their joint Federal income tax return for 2011.3 After concessions,4 the following issues  [*3]  remain for decision: (1) whether respondent properly disallowed a $197,337 casualty loss deduction claimed on the 2011 return; (2) whether respondent properly disallowed a $566,889 credit, for 2011 estimated tax payments and amounts applied from the 2010 return, claimed on the 2011 return; (3) whether petitioners are liable for a section 6662(a) accuracy-related penalty with respect to the underpayment arising from the [**2]  disallowance of the casualty loss deduction claimed on the 2011 return; and (4) whether the determination by Appeals to proceed with the proposed levy to collect the 2011 income tax liability as reported by petitioners was an abuse of discretion.

FINDINGS OF FACT

Some of the facts have been stipulated and, together with the exhibits attached thereto, are incorporated herein by this reference. At the time the petitions were filed in these cases, petitioners resided in Maryland.

I. 2010 return

OPINION

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T.C. Memo 2018-135 *; 2018 Tax Ct. Memo LEXIS 136 **; 116 T.C.M. (CCH) 210

LOUIS S. SHUMAN AND SANDRA SHUMAN, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent

Subsequent History: Affirmed by, Motion denied by, Stay denied by Shuman v. Comm'r, 2019 U.S. App. LEXIS 24345 (4th Cir., Aug. 15, 2019)

Disposition: Decision will be entered under Rule 155 in docket No. 27857-13 and for respondent in docket No. 15847-14L.

CORE TERMS

petitioners', overpayment, taxpayer, amended return, income tax, tax liability, elect, taxable year, casualty loss, refund, levy, settlement, notice, collection, casualty loss deduction, notice of deficiency, declaration, stock option, accuracy-related, understatement, taxes, cases, estimated tax, Deductions, casualty, losses, proffered evidence, supervisory, signature, total tax

Tax Law, Federal Tax Administration & Procedures, Tax Credits & Liabilities, Credits, Overassessments & Refunds, Tax Court, Burdens of Proof, Deficiencies, Federal Income Tax Computation, Federal Income Tax Computation, Losses, General Losses, Governments, Legislation, Interpretation, General Losses, Casualty Gains & Losses, Jurisdiction, Deficiencies, Tax Court Redetermination, Credits, Overassessments & Refunds, Overpayments, Business & Corporate Compliance, Civil Penalties, Accuracy Related Penalty, Civil Penalties, Hearings in Tax Court, Evidence, Exceptions, Business Records, Normal Course of Business, Authentication, Hearsay, Business Records, Assessments of Tax, Levy & Distraint, Due Process Hearings, Notice Requirement, Standards of Review, Abuse of Discretion, De Novo Standard of Review

Tax Law, Federal Tax Administration & Procedures, Tax Credits & Liabilities, Credits, Overassessments & Refunds, Tax Court, Burdens of Proof, Deficiencies, Federal Income Tax Computation, Federal Income Tax Computation, Losses, General Losses, Governments, Legislation, Interpretation, General Losses, Casualty Gains & Losses, Jurisdiction, Deficiencies, Tax Court Redetermination, Credits, Overassessments & Refunds, Overpayments, Business & Corporate Compliance, Civil Penalties, Accuracy Related Penalty, Civil Penalties, Hearings in Tax Court, Evidence, Exceptions, Business Records, Normal Course of Business, Authentication, Hearsay, Business Records, Assessments of Tax, Levy & Distraint, Due Process Hearings, Notice Requirement, Standards of Review, Abuse of Discretion, De Novo Standard of Review