Mearkle v. Commissioner
United States Tax Court
After our decision in Scott v. Commissioner, 84 T.C. 683 (1985), in which the portion of the proposed regulation relied on by respondent here was determined to be inconsistent with the statute, respondent moved to dismiss and enter decision that no deficiency exists. We granted the motion.
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After our decision in Scott v. Commissioner, 84 T.C. 683 (1985), in which the portion of the proposed regulation relied on by respondent here was determined to be inconsistent with the statute, respondent moved to dismiss and enter decision that no deficiency exists. We granted the motion. Petitioners moved for litigation costs under sec. 7430, I.R.C. 1954. Held, respondent was not unreasonable in continuing to advocate the position embodied in a proposed regulation until, and for a reasonable time after, the port on of the regulation embodying the position was determined to be inconsistent…
1Opinion of the Court
OPINION
PARR, Judge:
Respondent determined a deficiency in petitioners’ 1981 Federal income tax in the amount of $149. The issue for decision is whether an award of litigation costs under section 74302 is appropriate here.
Respondent determined the deficiency herein based on section 1.280A-2(i)(2)(ii), Proposed Income Tax Regs.,3 which we held was inconsistent with the statute in Scott v. Commissioner, 84 T.C. 683 (1985). That regulation viewed the gross income from a business conducted out of a home office as net of certain deductions. This effectively lowered the ceiling on home office expense…
2Cases cited19 opinions
- Boske v. ComingoreSupreme Court of the United States · 1900
- United States v. United Continental Tuna Corp.Supreme Court of the United States · 1976
- Commissioner v. EngleSupreme Court of the United States · 1984
- Commissioner v. Portland Cement Co. of UtahSupreme Court of the United States · 1981
- De Venney v. CommissionerUnited States Tax Court · 1985
14 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Nalle v. CommissionerUnited States Tax Court · 1994
- Laglia v. CommissionerUnited States Tax Court · 1987
- Sim-Air, USA, Ltd. v. CommissionerUnited States Tax Court · 1992
- Driggs v. CommissionerUnited States Tax Court · 1986
- Mearkle v. CommissionerUnited States Tax Court · 1988
7 more not listed; retrieve them via the Exa API.