Charles Brumbaugh & C. E. Holifield v. Commissioner

T.C. Memo. 2018-40

UNITED STATES TAX COURT CHARLES BRUMBAUGH AND C.E. HOLIFIELD, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 9161-14. Filed April 3, 2018. Ronald A. Hughes, Michael R. Morris, and Mayer Nazarian, for petitioners. Kris H. An and Jordan S. Musen, for respondent. MEMORANDUM FINDINGS OF FACT AND OPINION LAUBER, Judge: With respect to petitioners’ Federal income tax for 2007 the Internal Revenue Service (IRS or respondent) determined a deficiency of $152,602 and an accuracy-related penalty of $30,520. The deficiency stems from the disallowance of a…