Peat Oil & Gas Assocs. v. Commissioner
United States Tax Court
In Smith v. Commissioner, 91 T.C. 733 (1988), the synthetic fuel activities of petitioners were held to lack economic substance, and deductions for license fees, interest expense, and research and development expenses relating to those activities were denied. Held, the deductions claimed by petitioners in subsequent years are denied. Held, further: Smith v. Commissioner, 937 F.2d 1089 (6th Cir. 1991), revg. 91 T.C. 733 (1988), is not followed.
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In Smith v. Commissioner, 91 T.C. 733 (1988), the synthetic fuel activities of petitioners were held to lack economic substance, and deductions for license fees, interest expense, and research and development expenses relating to those activities were denied. Held, the deductions claimed by petitioners in subsequent years are denied. Held, further: Smith v. Commissioner, 937 F.2d 1089 (6th Cir. 1991), revg. 91 T.C. 733 (1988), is not followed. Karr v. Commissioner, 924 F.2d 1018 (11th Cir. 1991), affg. Smith v. Commissioner, 91 T.C. 733 (1988), is followed.
1Opinion of the Court
Cohen, Judge:
Respondent sent notices of final partnership administrative adjustment (fpaa) disallowing certain deductions claimed on partnership returns of three partnerships. Petitions were filed for the years in issue as follows:
Docket No. Partnership Tax year
30296-87 Peat Oil and Gas Associates (POGA) 1983
20081-88 Syn-Fuel Associates 1982 (SFA-1982) 1982 1983
1984
1985
20130-88 POGA 1984
Docket No. Partnership Tax year
820-91 POGA 1986
24514-91 Syn-Fuel Associates 1983
(SFA) 1984
1985
1986
1987
30440-91 POGA 1987
The disputed items deducted on the partnership tax returns are as follows:
Partnership…
2Cases cited24 opinions
- Anderson v. City of Bessemer CitySupreme Court of the United States · 1985
- United States v. United States Gypsum Co.Supreme Court of the United States · 1948
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. GroetzingerSupreme Court of the United States · 1987
- Jasionowski v. CommissionerUnited States Tax Court · 1976
19 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Hood v. CommissionerUnited States Tax Court · 2000
- Joseph Monti and Tita Monti v. United StatesCourt of Appeals for the Second Circuit · 2000
- Walter Prochorenko and Oksana Prochorenko v. United StatesCourt of Appeals for the Federal Circuit · 2001
- Internal Revenue Service v. CM Holdings, Inc. (In Re CM Holdings, Inc.)District Court, D. Delaware · 2000
- Thompson v. CommissionerUnited States Tax Court · 2011
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