Abrams v. C.I.R., 85-1966
| Court | United States Courts of Appeals. United States Court of Appeals (4th Circuit) |
| Writing for the Court | Before WIDENER, MURNAGHAN, and WILKINSON; MURNAGHAN |
| Citation | 787 F.2d 939 |
| Parties | -1130, 54 USLW 2531, 86-1 USTC P 9325 Richard L. ABRAMS, Wesley A. Aikens, Fred W. Aldrich, John J. Alford, Park O. Ames, Joseph C. Anderson, Theo V. Anderson, V.R. Barnhouse, Jr., James L. Baumdel, Alfredo J. Bayardo, William L. Becker, Jeremiah Benzvi, Don Bilsborough, Leo D. Borin, Andres Borruel, Robert G. Brown, Paul C. Campbell, Fred J. Canizales, Jay F. Cano, Kent Carper, Kishore Chokshi, Gordon W. Clancy, Julian R. Coles, Norman C. Cross, Jr., James W. Deggendorf, John C. Dolson, Steven E. Donley, J.G. Edsall, Robert E. Elms, Jr., Anthony C. Ernest, George P. Foster, Clinton R. Fuhrmann, Wayne L. Garden, R.A. Gaska, John A. Gauthier, Steven P. and Tracey Gesiriech, Eric J. Gobler, John F. Gray, Julius Griffin, Thomas Hardin, Paul E. Harris, R.W.E. Harrison, Jr., Henry K. Hasserjian, Joseph S. Howard, Isaac-Foster Insurance Agency, Randal L. Jackson, Jeff A. Johnson, Jay Jurkowitz, Robert A. Kemmerer, Susan B. Kennedy, Clement Lambert, Peter B. Lambert, Terry L. Lesley, Rodrick K. Leung, Carl E. Lindstrom, Charles H. Logan, Nicholas D. Mamalis, Richard L. Marks, Richard T. McAller, Arthur McDonough, Robert L. McLeroy, Mikhan, Inc., Carroll G. Miller, Stephen K. Mills, Henry H. Modrak, Richard J. Moore, Dona A. Nafziger, R. Wayne Neal, Richard L. Neal, Dennis L. Nichols, Kenneth W. Nyborg, Lewis L. Patrick, Ken Peet, Darol O. Petersen, Fred L. Picklesimer, Jon H. Purberry, Richard D. Raines, William W. Ramsey, Dean D. Reavie, William R. Reid, Michael J. Renfro, Rickie R. Richey, David G. Ritchie, James Ritchie, R. Clio Robertson, Russell D. Robinson, John P. Shirley, H.R. Slack, Kirk M. Smith, Thomas L. Smith, James Sobba, Robert E. Spann, W.M. Spector, W.L. Storey, James M. Stokes, Stringham Lumber Co., Denise C. Suek, Paul D. Swanson, Everett F. Telljohann, James P. Thies, Allan W. Thompson, William F. Trackler, James Melvin Treese, Ivan Van Dyke, Stephen F. Welsh, John J. Wendling, Ray Wicker, and Lawrence M. Zolot, Plaintiffs, and Telford S. Eggleston, Jr. |
| Docket Number | No. 85-1966,85-1966 |
| Decision Date | 09 April 1986 |
Page 939
USTC P 9325
J. Alford, Park O. Ames, Joseph C. Anderson, Theo V.
Anderson, V.R. Barnhouse, Jr., James L. Baumdel, Alfredo J.
Bayardo, William L. Becker, Jeremiah Benzvi, Don
Bilsborough, Leo D. Borin, Andres Borruel, Robert G. Brown,
Paul C. Campbell, Fred J. Canizales, Jay F. Cano, Kent
Carper, Kishore Chokshi, Gordon W. Clancy, Julian R. Coles,
Norman C. Cross, Jr., James W. Deggendorf, John C. Dolson,
Steven E. Donley, J.G. Edsall, Robert E. Elms, Jr., Anthony
C. Ernest, George P. Foster, Clinton R. Fuhrmann, Wayne L.
Garden, R.A. Gaska, John A. Gauthier, Steven P. and Tracey
Gesiriech, Eric J. Gobler, John F. Gray, Julius Griffin,
Thomas Hardin, Paul E. Harris, R.W.E. Harrison, Jr., Henry
K. Hasserjian, Joseph S. Howard, Isaac-Foster Insurance
Agency, Randal L. Jackson, Jeff A. Johnson, Jay Jurkowitz,
Robert A. Kemmerer, Susan B. Kennedy, Clement Lambert, Peter
B. Lambert, Terry L. Lesley, Rodrick K. Leung, Carl E.
Lindstrom, Charles H. Logan, Nicholas D. Mamalis, Richard L.
Marks, Richard T. McAller, Arthur McDonough, Robert L.
McLeroy, Mikhan, Inc., Carroll G. Miller, Stephen K. Mills,
Henry H. Modrak, Richard J. Moore, Dona A. Nafziger, R.
Wayne Neal, Richard L. Neal, Dennis L. Nichols, Kenneth W.
Nyborg, Lewis L. Patrick, Ken Peet, Darol O. Petersen, Fred
L. Picklesimer, Jon H. Purberry, Richard D. Raines, William
W. Ramsey, Dean D. Reavie, William R. Reid, Michael J.
Renfro, Rickie R. Richey, David G. Ritchie, James Ritchie,
R. Clio Robertson, Russell D. Robinson, John P. Shirley,
H.R. Slack, Kirk M. Smith, Thomas L. Smith, James Sobba,
Robert E. Spann, W.M. Spector, W.L. Storey, James M. Stokes,
Stringham Lumber Co., Denise C. Suek, Paul D. Swanson,
Everett F. Telljohann, James P. Thies, Allan W. Thompson,
William F. Trackler, James Melvin Treese, Ivan Van Dyke,
Stephen F. Welsh, John J. Wendling, Ray Wicker, and Lawrence
M. Zolot, Plaintiffs,
and
Telford S. Eggleston, Jr., James B. Embree, and Dwaine E.
Getz, Appellants,
v.
COMMISSIONER OF INTERNAL REVENUE, Appellee.
Fourth Circuit.
Decided April 9, 1986.
Page 940
Martin A. Schainbaum (Kathleen A. Miller, San Francisco, Cal., James E. Ritchie on brief) for appellants.
Gary D. Gray (Glenn L. Archer, Jr., Asst. Atty. Gen., Michael L. Paup; Richard Farber, Washington, D.C., on brief), for appellee.
Before WIDENER, MURNAGHAN, and WILKINSON, Circuit Judges.
MURNAGHAN, Circuit Judge:
Converting a sow's ear into a silk purse is acknowledgedly difficult. Seeking to convert into a notice of deficiency an Internal Revenue Service letter warning the petitioners that an attempt to utilize, for income tax purposes, a specific "tax shelter" would result in a redetermination leading to an assessment of a deficiency or a reduction or elimination of a refund amounts to an effort of equal audacity and equal futility.
I.
A large number of taxpayers invested in a so-called tax shelter known as the "Liberty Financial 1983 Government Securities Trading Strategy." They took the "tax shelter" into account in preparing and filing 1983 federal income tax returns. The Internal Revenue Service, in letters dated November 2, 1984, informed the taxpayers that it believed that deductions derived from investments in Liberty Financial were not allowable, and additionally remarked that taxpayers making use of the tax shelter who might already have filed their returns might wish to file amended returns. The Internal Revenue Service letter came after filing in most if not all cases had taken place.
The letter read:
Re: Liberty Financial 1983 Government Securities Trading Strategy
Dear Taxpayer:
Our information indicates that you invested in the above tax shelter during the above tax year. Based upon our review of that promotion, we believe that the purported tax deductions and/or credits are not allowable.
We...
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47 practice notes
-
Greenberg v. Comm'r of Internal Revenue, 20-13001
...requirements," i.e., "at minimum indicate that the IRS has determined the amount of the deficiency." Id. (first quoting Abrams v. Comm'r, 787 F.2d 939, 941 (4th Cir. 1986), then quoting Benzvi v. Comm'r, 787 F.2d 1541, 1542 (11th Cir. 1986)). The Ninth Circuit thus posed the question as "wh......
-
Greenberg v. Comm'r of Internal Revenue, 20-13001
...requirements," i.e., "at minimum indicate that the IRS has determined the amount of the deficiency." Id. (first quoting Abrams v. Comm'r , 787 F.2d 939, 941 (4th Cir. 1986), then quoting Benzvi v. Comm'r , 787 F.2d 1541, 1542 (11th Cir. 1986) ). The Ninth Circuit thus posed the question as ......
-
Hallmark Research Collective v. Comm'r of Internal Revenue, 21284-21
...of deficiencies. They do not state that they are notices of deficiencies. They do not state that a determination has been made"), aff'd, 787 F.2d 939 (4th Cir. 1986), and aff'd, 814 F.2d 1356 (9th Cir. 1987), and aff'd sub nom. Spector v. Commissioner, 790 F.2d 51 (8th Cir. 1986), and aff'd......
-
Hallmark Research Collective v. Comm'r of Internal Revenue, 21284-21
...of deficiencies. They do not state that they are notices of deficiencies. They do not state that a determination has been made"), aff'd, 787 F.2d 939 (4th Cir. 1986), and aff'd, 814 F.2d 1356 (9th Cir. 1987), and aff'd sub nom. Spector v. Commissioner, 790 F.2d 51 (8th Cir. 1986), and aff'd......
Request a trial to view additional results
47 cases
-
Greenberg v. Comm'r of Internal Revenue, 20-13001
...requirements," i.e., "at minimum indicate that the IRS has determined the amount of the deficiency." Id. (first quoting Abrams v. Comm'r, 787 F.2d 939, 941 (4th Cir. 1986), then quoting Benzvi v. Comm'r, 787 F.2d 1541, 1542 (11th Cir. 1986)). The Ninth Circuit thus posed the question as "wh......
-
Greenberg v. Comm'r of Internal Revenue, 20-13001
...requirements," i.e., "at minimum indicate that the IRS has determined the amount of the deficiency." Id. (first quoting Abrams v. Comm'r , 787 F.2d 939, 941 (4th Cir. 1986), then quoting Benzvi v. Comm'r , 787 F.2d 1541, 1542 (11th Cir. 1986) ). The Ninth Circuit thus posed the question as ......
-
Hallmark Research Collective v. Comm'r of Internal Revenue, 21284-21
...of deficiencies. They do not state that they are notices of deficiencies. They do not state that a determination has been made"), aff'd, 787 F.2d 939 (4th Cir. 1986), and aff'd, 814 F.2d 1356 (9th Cir. 1987), and aff'd sub nom. Spector v. Commissioner, 790 F.2d 51 (8th Cir. 1986), and aff'd......
-
Hallmark Research Collective v. Comm'r of Internal Revenue, 21284-21
...of deficiencies. They do not state that they are notices of deficiencies. They do not state that a determination has been made"), aff'd, 787 F.2d 939 (4th Cir. 1986), and aff'd, 814 F.2d 1356 (9th Cir. 1987), and aff'd sub nom. Spector v. Commissioner, 790 F.2d 51 (8th Cir. 1986), and aff'd......
Request a trial to view additional results