Like Judge Ruwe in my blogpost “Amen, Judge Posner,” 12/22/16, Judge Foley eschews factors, “somber reasoning and copious citation of precedent” and the usual laborious trudge through Reg. 1.183-2 (which Judge Posner characterized as “goofy”) in Joy Ford, 2018 T. C. Memo. 8, filed 1/25/18.

This my blog comes to you late due to hospitality at the annual meeting of the New York State Bar Association (thanks again, Steve), and intermittent connectivity breakdown from the Glasshouse website, being laboriously restored by the Second Street, NW Genius Bar.

Joy is a former country music recording artist, who, with late husband Sherman buys, and thereafter due to trust finds and brokerage account pours copious quantities of money into, Bell Cove Club in Hendersonville, TN. This is a country music showcase for songwriters and performers, to enable and invigorate the music Joy so much loves.

Admission charges and snack and beverage sales don’t begin to cover payments to the wannabes and headliners, and general operating costs. And her recordkeeping was a wee bit casual.

“Petitioner maintained incomplete handwritten ledgers and sporadically retained receipts relating to Bell Cove’s expenses. Her records, however, bore no relationship to the income and expenses reported on her returns.” 2018 T. C. Memo. 8, at p. 3.

Joy talked to a television producer to try to do a show from the club, but that was just talk, and Joy didn’t follow the advice of business experts who told her to run a proper seafood restaurant.

So Judge Foley don’t need no stinkin’ factors.

“In short, petitioner did not have the requisite intent to make a profit and thus may not deduct the losses in dispute. She had no expertise in club ownership, maintained inadequate records, disregarded expert business advice, nonchalantly accepted Bell Cove’s perpetual losses, and made no attempt to reduce expenses, increase revenue, or improve Bell Cove’s overall performance. Owning Bell Cove elevated petitioner’s status in the country music community, allowed her to further the careers of young performers, offered her weekly opportunities to interact with country music fans, and satiated her love for promoting country music. Petitioner earnestly devoted time and energy to Bell Cove but was primarily motivated by personal pleasure, not profit, and simply used the club’s losses to offset her trust and capital gain income.” 2018 T. C. Memo. 8, at pp. 5-6. (Citations and footnotes omitted).

Joy claimed some NOLs, but had no proof.

But Joy misses the chops, as IRS flunks the Graev Section 6751(b) Boss Hoss test; Judge Foley doesn’t play around with keeping the record open for IRS to dig for evidence.

It’s the straight-from-the-shoulder approach that Judge Posner would love.