As one is said to be when the tow truck removes one’s vehicle. That’s the situation of Maureen F. Shoe, T. C. Sum. Op. 2024-25, filed 12/23/24, who’s on the hook for the tow truck income of her daughter’s on-again, off-again boyfriend.

Said boyfriend put Maureen in charge of his tow-truck operation, claiming he “would take care of everything” as regards taxes. T. C. Sum. Op. 2024-25, at p. 10.

Maureen, a retired cafeteria manager, had unfettered control over the tow truck bank account, signed the checks, and paid her personal income tax therefrom. She also took out $21K in cash to buy her daughter’s engagement ring, which daughter kept after relationship cratered. She claims duress and physical threats to herself and daughter, but Judge Albert G. (“Scholar Al”) Lauber finds these took place after year at issue. T. C. Sum. Op[. 2024-25, at p. 7.

Maureen claims nominee status, but Judge Scholar Al blows that off.

“As a general rule, taxpayers are bound by the form of the transactions they have freely chosen, and they cannot escape the consequences of their chosen form by urging theories like ‘substance over form’ or ‘nominee’ status. In any event, the evidence established that petitioner was not a mere nominee. A ‘nominee’ holds bare legal title to property for the benefit of another.  Petitioner exercised complete dominion and control over the funds in the BoA account; she availed herself of the account on multiple occasions to pay her expenses and get cash; and she was the sole person authorized to withdraw $51,709 from the account at year-end 2019.” T. C. Sum. Op. 2024-25, at pp. 7-8.

The money was withdrawn, but Maureen’s testimony that she didn’t know what happened to it flunks Judge Scholar Al’s credibility test. T. C. Sum. Op. 2024-25, at p. 6.

And that boyfriend didn’t testify on the trial didn’t help, not did the testimony of the attorney boyfriend hired to deal with the taxes when he couldn’t produce the expense receipts he claimed he gave the RA at audit.

But Maureen’s background and unfamiliarity with taxes saves the chops.

A Taishoff “Tough Loss” to Maureen’s never-say-die trusty attorneys, the Jersey Boys.