In Uncategorized on 10/04/2014 at 10:41

Yes, I’m paraphrasing Virgil. Mr Peter Reilly over at Forbes e-mailed me to inquire why I hadn’t anything to say about the interface between Section 183 and Section 162 in  Susan Crile, 2014 T. C. Memo. 214, 10/2/14. Well, I found nothing new in the 53 pages of Judge Lauber’s prose. The history of losses in an artist’s career I covered back in 2013 in my blogpost “And All that Jazz”, 8/14/13, and the ordinary-and-necessary in many places, but where it interfaces with Section 183, in my blogpost “I’ve Got the Horse Right Here”, 4/9/14.

So much of the opinion deals with Susan’s illustrious career and accomplishments, that I thought it better suited to the introduction to a catalogue raisonnée than to a blogpost on taxes.

And that art can be a “trade or business”, see Judge Kerrigan’s opinion cited in “And All That Jazz”, supra, as my high priced colleagues say.

So much for art. Now for the man.

And the man in this case is The Great Dissenter, a/k/a The Judge Who Writes Like a Human Being, s/a/k/a The Implacable Foe of the Partitive Genitive, Mark V. Holmes.

Only this time he’s concurring, not dissenting. I’m going back to Thomas M. Comparini and Vicki Comparini, 143 T. C. 14, filed 10/2/14.

The concurrers are afraid that the majority has opened the door to epistolary ping-pong, with the claimant able to pick which letter, of the back-and-forth letters is the “determination” from which to petition.

“The Court’s holding that a claimant may file a petition, at his option, in response to any of a series of letters referring to the denial of his claim is difficult to reconcile with the 30-day jurisdictional filing period that Congress placed in section 7623(b)(4). The Office has not hesitated to send multiple letters to claimants in an effort to demonstrate its good faith in acknowledging their queries and submissions. A claimant who has received a determination letter denying his claim and who has neglected to file a Tax Court petition within 30 days may have little difficulty stimulating the issuance by that Office of one or more additional letters reaffirming the previous letter(s). If each subsequent letter falls within the statutory phrase ‘any determination,’ claimants can end-run the 30-day jurisdictional filing period filing period with comparative impunity.” 143 T. C. 14, at pp. 35-36.

But Judge Holmes answered the question. See my blogpost “The Great Dissenter”, 12/28/11. “Once again, Judge Holmes says it in a footnote: IRS could clear this up in the abusive shelter area by creating a single-track deficiency procedure, where both partnership and partners are in it together. 137, T.C. 17, at p. 44, footnote 3.”

The Sunseteers can send any number of letters, as long as they put in the magic words that state unequivocally that claimant has reached the end of the trail in the letter that starts the Section 7623(b)(4) clock running. Like “determination” and “the file is closed.” and “file a petition with Tax Court”.

  1. […] Lew Taishoff, who was taking a pass on this case till I asked him about it, wrote: […]


  2. […] Lew Taishoff, who was taking a pass on this case till I asked him about it, wrote: […]


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