U.S. Tax Court · 2025–2026
What we learned from every Tax Court opinion in 2025 and 2026
Our advisors reviewed all regular, memorandum and summary opinions the court issued from January 2025 through early November 2026. These are the lessons that matter for taxpayers facing an IRS dispute.
Updated every Monday · data through November 6, 2026
Last week in Tax Court · Week of November 2, 2026
What the court decided last week
Two more charitable-donation cases went against inflated appraisals, the court reaffirmed that BBA partnership petition deadlines can be tolled, and several individual cases turned on missing records.
Records win cases: appraisals, receipts, bank statements and proof of where children lived decided most of last week's opinions.
Full daily case summaries- Murphy Hollow, LLC v. Commissioner T.C. Memo. 2026-115
Donation deductions of $46 million denied in full for lack of a qualified appraisal; 40% penalty applied.
- Butler v. Commissioner T.C. Memo. 2026-116
No head of household status or child credits where the children lived with the other parent more than half the year.
- Pinckney v. Commissioner T.C. Memo. 2026-113
Bank records supported much higher gross receipts for a tax-preparation business; nearly all adjustments sustained.
- Moiseshyn v. Commissioner T.C. Memo. 2026-114
Unreported capital gain, dividend and interest income taxed; the IRS had conceded the penalty.
- Bialer v. Commissioner T.C. Memo. 2026-110
Whistleblower award denial upheld on the administrative record.
- Morgan Run Partners, LLC v. Commissioner T.C. Memo. 2026-112
A late switch to an industrial highest-and-best use failed; rezoning was not reasonably probable.
- Kings Road Property, LLC v. Commissioner 167 T.C. No. 14
IRS motion to reconsider denied; BBA petition deadline can still be equitably tolled.
- Glass Warehouse, LLC v. Commissioner T.C. Memo. 2026-111
$118,302 of subcontractor expenses disallowed for lack of records; penalty sustained.
- Stevens v. Commissioner T.C. Summary Opinion 2026-10
Schedule C deductions disallowed and penalty applied.
What the court spent its time on
Most frequent issues
Approximate counts from a keyword review of each opinion since January 2025. One opinion can involve several issues.
Seven lessons from 2025–2026
Lesson 01
Deadlines decide cases
Treat the 90-day deadline on a Notice of Deficiency or a partnership adjustment as absolute. The court has sometimes allowed late petitions, but only in narrow situations, and in TEFRA cases never.
- Donlan v. Commissioner 164 T.C. No. 3
An electronically filed petition with a typed name in the signature block is signed; the court kept the case.
- Belagio Fine Jewelry, Inc. v. Commissioner 164 T.C. No. 7
The 90-day deadline in worker-classification cases can be equitably tolled, but the facts here did not justify it.
- North Wall Holdings, LLC v. Commissioner 165 T.C. No. 9
A late TEFRA partnership petition was dismissed: the deadline is jurisdictional and cannot be tolled.
- Big Apple Tompkins Realty LLC v. Commissioner 167 T.C. No. 7
For BBA partnership audits, the 90-day petition deadline is not jurisdictional.
- Kings Road Property, LLC v. Commissioner 167 T.C. Nos. 11 & 14
The BBA deadline can be equitably tolled if the partnership shows diligence and extraordinary circumstances; the IRS's request to reconsider was denied.
- Arbor Vita Corp. v. Commissioner 166 T.C. No. 5
A suspended California corporation could not file a petition, and its later revival did not save the case.
Lesson 02
The statute of limitations is a real defense
Know exactly which consent forms you signed and when the assessment and collection periods end. Expired periods can defeat an assessment or a collection action.
- JM Assets, LP v. Commissioner 165 T.C. No. 1
A Treasury regulation that held the BBA adjustment period open longer than the statute allows was invalid to that extent.
- Garcia v. Commissioner 164 T.C. No. 8
A passport certification was erroneous where the collection period on the old debts had expired; the court reviews on a fresh record.
- Fine v. Commissioner 167 T.C. No. 13
A Form 872-T did not terminate the taxpayers' properly executed Form 872 extension, so the IRS notices were timely.
- Mammoth Cave Property, LLC v. Commissioner 166 T.C. No. 4
The IRS's final partnership adjustment was issued within the BBA period and was valid.
- Katanga Properties, LLC v. Commissioner 167 T.C. No. 10
Another BBA final partnership adjustment held timely under section 6235(a)(1) and (b).
Lesson 03
Charitable deductions live or die on valuation and paperwork
A recent arm's-length purchase price is strong evidence of value, a highest-and-best-use theory needs proof, and a qualified appraisal is not optional.
- Capitol Places II Owner, LLC v. Commissioner 164 T.C. No. 1
A $23 million facade easement deduction failed: the building was not a certified historic structure and the deed showed no valid conservation purpose.
- Ranch Springs, LLC v. Commissioner 164 T.C. No. 6
A purchase at $6,500 an acre a year earlier was very strong evidence of value; the claimed limestone-mining use was not proven.
- Piton Holdings, LLC v. Commissioner 167 T.C. No. 4
The easement was worth $800,000 using comparable sales, far below the claim, so the 40% gross valuation misstatement penalty applied.
- Green Family Delta Trust v. Commissioner 165 T.C. No. 7
Whether reasonable cause excuses defects in appraisal paperwork for donated artifacts must be decided at trial.
- Murphy Hollow, LLC v. Commissioner T.C. Memo. 2026-115
Deductions were denied in full because the managers knew the appraiser would overstate value.
Lesson 04
Penalty defenses are narrowing
Procedural penalty defenses such as supervisory approval and jury-trial arguments are succeeding less often. Reasonable cause, built on good records and qualified advice, remains the strongest defense.
- Computer Sciences Corp. v. Commissioner 165 T.C. No. 8
Written supervisory approval before the 30-day letter satisfied section 6751(b); Administrative Procedure Act arguments failed.
- Silver Moss Properties, LLC v. Commissioner 165 T.C. No. 3
There is no Seventh Amendment jury right in TEFRA cases, and the Tax Court can decide civil fraud penalties.
- Riddle Aggregates, LLC v. Commissioner 165 T.C. No. 12
The same reasoning applied to the 20% and 40% accuracy-related penalties.
- Patel v. Commissioner 165 T.C. No. 10
The codified economic substance doctrine was relevant to a micro-captive insurance arrangement, and the related penalties applied.
Lesson 05
Use your first chance to dispute a liability
If the IRS offers an Appeals conference, use it. Skipping it can bar you from disputing the liability later in a collection due process hearing.
- The Diversified Group Inc. v. Commissioner 166 T.C. No. 2
An earlier offer of an Appeals conference counted as a prior opportunity, so the taxpayer could not challenge the penalties in its CDP case.
- Mission Organic Center, Inc. v. Commissioner 165 T.C. No. 13
In evaluating an offer in compromise, the IRS may ignore expenses that section 280E makes nondeductible for cannabis businesses.
- Tooke v. Commissioner 164 T.C. No. 2
Constitutional challenges to IRS Appeals officers' appointments failed for lack of standing and prejudice.
- Hough Beck & Baird, Inc. v. Commissioner 167 T.C. No. 2
A materially flawed employment tax assessment could be fixed with a timely supplemental assessment.
Lesson 06
Income is broad, credits are narrow
Settlements, grants and other receipts are usually taxable unless a specific exclusion applies, and credits come with strict timing and eligibility rules.
- Eiler v. Commissioner 167 T.C. No. 3
The full settlement of a consumer-credit lawsuit, including attorney's fees, was taxable income.
- CF Headquarters Corp. v. Commissioner 164 T.C. No. 5
Government grant proceeds were taxable; they were neither a capital contribution nor a gift.
- Moon v. Commissioner 165 T.C. No. 4
No electric vehicle credit for 2019 on a car placed in service in 2013.
- Savage v. Commissioner 165 T.C. No. 5
The IRS correctly applied the wage limitation for the section 199A pass-through deduction.
- Barrett Business Services, Inc. v. Commissioner 166 T.C. No. 7
Only common-law employers, not PEOs as statutory employers, can claim the Work Opportunity Tax Credit.
Lesson 07
Large-company and international rulings
Several decisions favored taxpayers where regulations went beyond the statute's text. Contemporaneous documentation still decides transfer-pricing cases.
- AbbVie Inc. v. Commissioner 164 T.C. No. 10
A fee paid to walk away from a planned merger was not a capital loss under section 1234A, because the agreement was essentially for services; the taxpayer won summary judgment.
- Siemens Medical Solutions USA, Inc. v. Commissioner 167 T.C. No. 5
The full section 245A dividends-received deduction was allowed; a temporary regulation could not override the statute.
- Apache Corp. v. Commissioner 165 T.C. No. 11
The taxpayer's NOL carryback election waived only part of the loss; taxpayer win.
- Facebook, Inc. v. Commissioner 164 T.C. No. 9 · 167 T.C. No. 12
The IRS used the wrong inputs in its cost-sharing income method; a later opinion addressed what CSA documentation must contain.
- Varian Medical Systems, Inc. v. Commissioner 166 T.C. No. 8
Section 246 limited part of the dividends-received deduction; IRS win.
Case descriptions are short summaries prepared by VG CPA PC from the opinions; they are general information, not legal advice. Memorandum and summary opinions are not binding precedent, and several cases may be appealed. Read the full opinion on the Tax Court docket before relying on any case. For new opinions, see our daily Tax Court case summaries.
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