news• US Tax Court
Algarawi and Hachim v. Commissioner: Unreported Income and Accuracy-Related Penalties Upheld
S. 60 in accuracy-related penalties for tax years 2020 and 2021.
Docket No. 6824-24
S. 60 in accuracy-related penalties for tax years 2020 and 2021.
The stakes in Muhammad Zulfiqar and Shazia Zulfiqar v.
The stakes were nothing short of life-altering for Dr. Asia Zaheen: a $120,510 tax deficiency and an additional $24,102 penalty for tax year 2019, all stemming from a joint return she signed with her then-spouse, Kamran Ehsan.
The stakes could not have been higher. S. Tax Court issued its September 24, 2025 opinion in Fumo v. Commissioner, it delivered a verdict that would cost former Pennsylvania Senator Vincent J. 5 million in unreported income, fraud penalties, and excise taxes.
The stakes couldn’t have been higher. A whistleblower came forward with explosive allegations of a $1 billion tax evasion scheme, claiming the IRS was owed $400 million in unpaid taxes.
The stakes couldn’t have been higher: $20,904 in disputed tax liability hinged on whether the IRS could bypass a fundamental safeguard in the tax code. S.
The Tax Court’s January 7, 2026 ruling in Dunn v. C. Memo. 2026-2) exposes a harsh reality for taxpayers navigating Collection Due Process (CDP) hearings: a procedural misstep can erase all leverage, even when no tax is owed.
The stakes couldn’t have been higher when Todd A. Crawford, a small-business owner, found himself staring down a $28,977 Trust Fund Recovery Penalty (TFRP) liability for unpaid payroll taxes.
The stakes couldn’t have been clearer: the IRS revoked the Milk Saving Starving Children Foundation’s 501(c)(3) tax-exempt status effective July 1, 2017, leaving the foundation liable for $26,447 in unrelated business income tax for 2018; with no charitable expenditures to offset it.
S. Tax Court delivered a stark reminder to high-net-worth taxpayers this week, denying a $188,563 charitable deduction claimed by Luke and Breeana Gibson for donated "high-end cycling apparel" due to a complete failure to substantiate the donation’s basis and fair market value.
The Tax Court’s December 30, 2025 ruling in Estate of Georgia M. Spenlinhauer delivers a stark warning to executors and heirs: missed deadlines and overlooked elections can trigger millions in unpaid taxes, penalties, and transferee liability. 5 million at stake.
9 million refund demand. At issue is whether Carl Barney’s transfer of his for-profit college empire to a nonprofit entity in 2012 was a legitimate bargain sale under Section 170; the charitable contribution deduction statute; or a disguised sale designed to avoid capital gains tax.
The stakes could not have been higher for Ignacio Montes Gonzalez and Adalberto Yanez Alvarenga when the Tax Court delivered its final ruling in their case.
The Tax Court’s December 18, 2025 ruling in Mark L. Fussell v. Commissioner delivers a stark warning to taxpayers who attempt to deduct loans to failed businesses as bad debts.
The Tax Court’s December 16, 2025 ruling in Mission Organic Center, Inc. v. Commissioner delivered a stark warning to state-legal marijuana businesses: the IRS’s collection power trumps even the most aggressive settlement offers when nondeductible §280E expenses are involved.
The stakes could not have been higher when the Tax Court denied a motion to dismiss a $45 million dispute over a conservation easement deduction; one that, if allowed, would have erased nearly $45 million in claimed charitable contributions, plus a 20% accuracy-related penalty...