Tax Litigation: The Week of November 7th, 2022, through November 11th, 2022
- Fields v. Comm'r, T.C. Summary Opinion 2022-22 | November 10, 2022 | Panuthos, Special Trial J. | Dkt. No 2925-20S (IRS Automated Underreporter, gifts from employer, unreported gross income, and accuracy-related penalty)
- Amos v. Comm'r, T.C. Memo. 2022-109 | November 10, 2022 | Urda, J. | Dkt. No. 4331-18
Green Valley Investors, LLC v. Comm'r, 159 T.C. No. 5 | November 9, 2022 | Weiler, J. | Dkt. Nos. 17379-19, 17380-19, 17381-19, 17382-19 (consolidated)
Opinion
Short Summary: On December 23, 2016, the IRS issued Notice 2017-10, which identified all syndicated conservation easement transactions beginning January 1, 2010, including all substantially similar transactions, as "listed transactions" for purposes of Treas. Reg. ' 1.6011-4(b)(2). In 2019, the IRS examined several limited liability companies (collectively, the "taxpayers"). After the taxpayer challenged the IRS's determinations in its final partnership administrative adjustments ("FPAAs") through the filing of a Tax Court petition, the IRS answered and asserted an additional penalty against the taxpayers under I.R.C. ' 6662A. The parties filed cross-motions for summary judgment on the I.R.C. ' 6662A penalty issue with the taxpayers contending, among other things, that the IRS's issuance of Notice 2017-10 failed to comply with the notice-and-comment provisions of the Administrative Procedure Act (the "APA").
Key Issues:
Whether Notice 2017-10 is a legislative or interpretative rule under the APA?
Whether Notice 2017-10 must be set aside as in violation of the notice-and-comment procedures of the APA?
Primary Holdings: Notice 2017-10 is a legislative rule that was improperly issued by the IRS without notice...
