Tuesday, April 2, 2013

Andrews v. Commissioner case brief

Andrews v. Commissioner case brief summary
931 F.2d 132



SYNOPSIS:
Appellant taxpayer sought review of a judgment of the United States Tax Court, which sustained a tax deficiency assessed by appellee Commissioner of the Internal Revenue Service in connection with appellant's claimed business-related tax deductions.

OVERVIEW: Appellant taxpayer resided in Massachusetts and maintained a home in Florida for business purposes. Appellant was assessed an income tax deficiency by appellee Commissioner of the Internal Revenue Service in connection with appellant's deduction of travel expenses, including meals and costs associated with maintaining the second home in Florida. Appellant sought a reassessment by the tax court, which sustained appellee's disallowance of the deduction on the grounds that appellant was not "away from home" when the expenses were incurred. On appeal, the court vacated the order and remanded for further proceedings.

HOLDING:
The court held that the tax court erred in basing its decision on an observation that appellant's business in Florida was recurrent with each season, rather than temporary.

ANALYSIS:
Further, the tax court's conclusion that appellant had two "tax homes" was inconsistent with the well-settled policy underlying 26 U.S.C.S. § 162(a)(2) that duplicated living expenses necessitated by business were deductible. Thus, the matter was remanded for a determination of appellant's principal place of business.

OUTCOME: The court vacated the tax court's order upholding appellee Commissioner of the Internal Revenue Service's tax deficiency assessment and remanded for further proceedings because the tax court erred in concluding that appellant taxpayer had two "tax homes" for purposes of allowable deductions for business reasons.

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