Rick B. Ferguson & Deanna Ferguson v. Commissioner

T.C. Memo. 2019-40

UNITED STATES TAX COURT RICK B. FERGUSON AND DEANNA FERGUSON, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 10733-16. Filed April 23, 2019. Ashlea Brown, Walter M. Ebel III, and Joel F. Hoover, for petitioners. Ann L. Darnold and H. Elizabeth H. Downs, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION VASQUEZ, Judge: Respondent determined deficiencies in petitioners’ Federal income tax of $571,003 and $72,586 for 2011 and 2012, respectively. -2- [*2] After concessions,1 the issues for decision are (i) whether petitioners may deduct a settlement…