Hyman S. Zfass v. Commissioner of Internal Revenue

Affirmed by published opinion. Judge MURNAGHAN wrote the opinion, in which Judge NIEMEYER and Judge FABER joined.

OPINION

MURNAGHAN, Circuit Judge:

The Internal Revenue Service (“IRS”) determined that Hyman Zfass, Appellant, participated in a tax shelter which was solely tax motivated. The IRS, therefore, disallowed the deductions taken on his income tax returns and required him to pay interest and penalties. Zfass’s wife was dismissed as an innocent party.

Zfass has argued that he exercised good faith in relying on his own expertise in the medical field and his accountant’s advice in assessing…