Altman v. Commissioner

Ninth Circuit

Altman v. Commissioner

469 F. App'x 565

Court of Appeals for the Ninth Circuit·Decided February 27, 2012·No. 09-70936·Unpublished

Opinions

MEMORANDUM

**

Dr. David Altman and Beverly Altman appeal an order of the United States Tax Court holding them liable for negligently claiming a loss on their 1982 tax return. The Altmans had invested in a project of CAL-NEVA Partners, a Nevada limited partnership involved in growing jojoba [566]*566beans. The tax court found the Altmans negligent in claiming the tax loss.

We reverse. The tax court clearly erred in concluding that Dr. Altman’s own thorough investigation was insufficient to permit him to make a reasonable decision that the project had some fair prospect of profitability. And the tax court clearly erred in concluding that Dr. Altman’s consultation with Mr. Mohler, and his related conduct in claiming the deduction, was inadequate. See Sacks v. Commissioner, 82 F.3d 918, 920 (9th Cir.1996).

Because the tax court’s determinations regarding the Altmans’ negligence are not supported by the record, we reverse its holding that the Altmans were negligent within the meaning of former § 6658(a) of the Internal Revenue Code for claiming a loss relating to their investment in CAL-NEVA. The decision ordering additions to tax totaling $82,596 is therefore REVERSED.

This disposition is not appropriate for publication and is not precedent except as provided by 9th Cir. R. 36-3.

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MEMORANDUM

**

Dr. David Altman and Beverly Altman appeal an order of the United States Tax Court holding them liable for negligently claiming a loss on their 1982 tax return. The Altmans had invested in a project of CAL-NEVA Partners, a Nevada limited partnership involved in growing jojoba [566]*566beans. The tax court found the Altmans negligent in claiming the tax loss.

We reverse. The tax court clearly erred in concluding that Dr. Altman’s own thorough investigation was insufficient to permit him to make a reasonable decision that the project had some fair prospect of profitability. And the tax court clearly erred in concluding that Dr. Altman’s consultation with Mr. Mohler, and his related conduct in claiming the deduction, was inadequate. See Sacks v. Commissioner, 82 F.3d 918, 920 (9th Cir.1996).

Because the tax court’s determinations regarding the Altmans’ negligence are not supported by the record, we reverse its holding that the Altmans were negligent within the meaning of former § 6658(a) of the Internal Revenue Code for claiming a loss relating to their investment in CAL-NEVA. The decision ordering additions to tax totaling $82,596 is therefore REVERSED.

This disposition is not appropriate for publication and is not precedent except as provided by 9th Cir. R. 36-3.

Altman v. Commissioner, 469 F. App'x 565 (9th Cir. 2012).

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Service Employees International Union, Afl-Cio, Clc California State Council of Service Employees/cope California Teachers Association California Teachers Association for Better Citizenship Political Action Committee Committee to Protect the Political Rights of Minorities Willie L. Brown Willie L. Brown Campaign Committee Friends of David Roberti Friends of John Burton John Burton Alice Huffman Michael Ross Allen Ruby v. Fair Political Practices Commission, and Quentin L. Kopp Ross Johnson, Defendants-Intervenors-Appellants. Service Employees International Union, Afl-Cio, Clc California State Council of Service Employees/cope California Teachers Association California Teachers Association for Better Citizenship Political Action Committee Committee to Protect the Political Rights of Minorities Willie L. Brown Willie L. Brown Campaign Committee Friends of David Roberti Friends of John Burton John Burton Alice Huffman Michael Ross Allen Ruby, California Democratic Party, an Incorporated Association, in Intervention-Appellee v. Quentin L. Kopp Ross Johnson, Defendants-Intervenors-Appellants, and Fair Political Practices Commission, Defendant-Intervenor. Service Employees International Union, Afl-Cio, Clc California State Council of Service Employees/cope California Teachers Association California Teachers Association for Better Citizenship Political Action Committee Committee to Protect the Political Rights of Minorities Willie L. Brown Willie L. Brown Campaign Committee Friends of David Roberti Friends of John Burton John Burton Alice Huffman Michael Ross Allen Ruby, California Democratic Party, an Incorporated Association, Plaintiff-Intervenor-Appellee v. Fair Political Practices Commission, and Quentin L. Kopp Ross Johnson, Defendants-Intervenors

955 F.2d 1312 (Ninth Circuit, 1992)

August C. Wolf Muriel M. Wolf v. Commissioner Internal Revenue Service

4 F.3d 709 (Ninth Circuit, 1993)

Zachary H. Sacks and Salley Sacks v. Commissioner of Internal Revenue

82 F.3d 918 (Ninth Circuit, 1996)

Opinions

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