Daniel Omar Parker and Chantrell Antoine Parker, 2021 T. C. Memo. 111, filed 9/23/21, is another employee business expense case, fact-bound and interesting only for IRS dropping the chops and the excess IRA contribution angle.

Danny O can’t tell Judge Albert G (“Scholar Al”) Lauber whence came the $64K Danny O and Chantrell deducted as an IRA contribution. If a rollover, like some of the other deposits they were consolidating into a new IRA, no deduction.

“Mr. Parker testified that he created the new ‘Solo 401(k)’ to consolidate petitioners’ retirement accounts. Evidence in the record (including petitioners’ prior tax returns) indicates that they had other retirement plan assets that could have been the source for the $60,444 slice of the cashier’s check. For 2013 and 2014 alone, petitioners claimed deductions totaling $82,363 for contributions to self-employed SEP, SIMPLE, and qualified plans. But they admit a rollover from their prior ‘Solo 401(k)’ of only $39,823. Viewing the evidence as a whole, we find that petitioners have failed to carry their burden of proving that any portion of the $60,444 contribution consisted of new cash rather than nondeductible rollover.” 2021 T. C. Memo. 111, at p. 13.

But here’s the headline-grabber that Danny O puts in his post-trial brief. He says he and Chantrell “…prefer to keep their savings ‘at home where they are protected * * * and safe from unscrupulous individuals including IRS agents.’” 2021 T. C. Memo. 111, at p. 13.

Judge Scholar Al comments with almost Olympian detachment, “This assertion does not satisfy their burden of proof.” 2021 T. C. Memo. 111, at p. 13.

Any further comment is superfluous.