Horn v. Commissioner
United States Tax Court
In 1982, petitioners purchased units in a gold mine tax shelter and claimed mining development expenses relating thereto on their 1982 Federal income tax returns. Before investing in this gold mine program, petitioners made no independent investigation of its profit potential or the promoters, but relied instead for this purpose on the advice of their tax return preparers and/or financial advisor, none of whom were independent of the gold mine tax shelter promotion.
Read the full summary
In 1982, petitioners purchased units in a gold mine tax shelter and claimed mining development expenses relating thereto on their 1982 Federal income tax returns. Before investing in this gold mine program, petitioners made no independent investigation of its profit potential or the promoters, but relied instead for this purpose on the advice of their tax return preparers and/or financial advisor, none of whom were independent of the gold mine tax shelter promotion. Held, the gold mine tax shelter was a sham transaction, devoid of any economic substance. Held, further, petitioners' positions…
1Opinion of the Court
HAMBLEN, Judge:
Respondent determined the following deficiencies in petitioners’ 1982 Federal income taxes and additions to tax in these consohdated cases:
Additions to tax Docket Sec.2 cj Q) CO Sec.3 Sec.
6621(c) 6661 Petitioner No. Deficiency 6653(a)(1) CN lo
$961.00 Horn 25579-84 $9,611 $481.00 *
2,463.00 Avioli 36405-84 24,625 1,231.00 *
1,246.40 Callis 36866-84 12,464 623.20 * ~
(**) 1,169.20 Voile 7242-85 11,692 584.60 * —
*50 percent of the interest due under sec. 6601 with respect to the portion of the underpayment attributable to negligence.
**120 percent of the interest accruing after Dec. 31,…
2Cases cited39 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Gregory v. HelveringSupreme Court of the United States · 1935
- Neely v. CommissionerUnited States Tax Court · 1985
- Higgins v. SmithSupreme Court of the United States · 1940
34 more not listed; retrieve them via the Exa API.
3Cited by59 opinions
- McCrary v. CommissionerUnited States Tax Court · 1989
- James B. Thomas, Plaintiff-Appellee/cross-Appellant v. United States of America, Defendant-Appellant/cross-AppelleeCourt of Appeals for the Sixth Circuit · 1999
- Frazier v. CommissionerUnited States Tax Court · 1998
- Bagby v. CommissionerUnited States Tax Court · 1994
- Rovakat, LLC v. Comm'rUnited States Tax Court · 2011
54 more not listed; retrieve them via the Exa API.