Joseph M. Irom v. Commissioner of Internal Revenue

JON 0. NEWMAN, Circuit Judge:

The Commissioner of Internal Revenue appeals from a judgment of the United States Tax Court (Samuel B. Sterrett, Judge) declining to hold Joseph M. Irom liable for additional interest on a deficiency in his 1980 income taxes. We vacate in part and remand.

Background

The Internal Revenue Code imposes additional interest penalties on any substantial underpayment “attributable to tax motivated transactions.” 26 U.S.C. § 6621(c)(1) (Supp. IV 1986). 1 The Code lists five types of transactions that are considered “tax motivated,” including “any loss disallowed by reason…