Donald R. Campbell and Patricia A. Campbell v. Commissioner of Internal Revenue

I respectfully dissent from the majority opinion as to parts I and III, and from the majority’s conclusion that there should be no assessment of a penalty against taxpayers for negligence and/or fraud under § 6653(a) of the Internal Revenue Code, 26 U.S.C. § 6653(a)(1) on the assessment for the underpayment resulting from the Health Air loss deductions.

As to part I, dealing with 26 U.S.C. § 183, the Tax Court made the following finding:

We conclude that Health Air partnership was not in the trade or business of leasing an airplane and its activity was an activity “not engaged in for profit”…