T.C. Summary Opinion 2021-37
UNITED STATES TAX COURT
FORREST CRAWLEY AND SHAWNA CRAWLEY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 8246-17S. Filed November 16, 2021.
Forrest Crawley and Shawna Crawley, pro sese.
Christopher Bradley and Caitlin O’Riordan (student), for respondent.
SUMMARY OPINION
WELLS, Judge: This case was heard pursuant to the provisions of section
7463 of the Internal Revenue Code in effect when the petition was filed. 1 Pursuant
1 Unless otherwise indicated, section references are to the Internal Revenue Code of 1986, as amended and in effect for the year in issue. Rule references are to the Tax Court Rules of Practice and Procedures.
Served 11/16/21 -2-
to section 7463(b), the decision to be entered is not reviewable by any other court,
and this opinion shall not be treated as precedent for any other case. After
concessions, 2 the remaining issue is whether petitioners are entitled to deduct
$26,439 in moving expenses on their 2015 Form 1040, U.S. Individual Income Tax
Return.
Background
When they timely filed the petition, petitioners resided in Georgia. The
stipulation of facts and attached exhibits are incorporated herein by this reference.
Petitioner wife in 2015 began working as a UPS Training & Development
Manager in Pennsylvania. Sometime between November 16 and December 1,
2015, she transferred to a workplace in the Atlanta, Georgia, metropolitan area.
Petitioner wife’s position changed to “Assistant Center Manager” in Atlanta on
December 7, 2015. Petitioner wife remained at UPS during 2016 and 2017.
Petitioner wife first moved by herself to a recreational vehicle (RV) park in
Atlanta and lived in the family’s 33-foot RV camper. Petitioners paid various RV-
related charges in both Branchville, New Jersey, and McDonough, Georgia. Two
of these charges were for $530 each paid to Atlanta South RV Park in McDonough
2 Respondent concedes that petitioners are not liable for a penalty pursuant to sec. 6662. -3-
on November 28 and December 28, 2015. An undated copy of prices for Atlanta
South RV Park shows a monthly rate of $560 for the RV site. Petitioner husband
stayed in Pennsylvania until their children finished school. Petitioners continued
to incur charges during November and December 2015 in Pennsylvania and
Georgia.
At the end of 2015 petitioners hired a “mom and pop” moving company to
pack the contents of their 3,500-square-foot house, a boat, a four wheeler, four dirt
bikes, three motorcycles, and two cars. Petitioners ultimately moved the bikes and
the boat themselves. Petitioners chose the “mom and pop” moving company
because it was the cheapest; they had priced a competitor, Mayflower, at roughly
$30,000.
On November 23, 2015, petitioner wife sold $21,835 worth of UPS stock.
Petitioners used the proceeds from this sale to fund their move. The proceeds were
direct deposited into petitioners’ bank accounts, from which petitioners made two
cash withdrawals in $100 bill increments; the first withdrawal was around $12,000
and the second around $8,000. Petitioners used cash to pay the movers in full
before the items were delivered in Georgia.
Petitioner husband and the children moved to Georgia in December 2015.
At that point the family joined petitioner wife in the RV camper. Petitioners’ -4-
household items were delivered to a storage unit in Georgia in January 2016.
Petitioners moved into a rental house, and then found a home to buy in spring
2016. In the multiple moves petitioners lost track of the records detailing their
moving expenses. Petitioners instead submitted a 2018 internet article estimating
that an interstate move costs between $2,000 and $5,000 for the transportation;
plus 50 cents per pound; plus $25-$50 per hour per mover for packing and
unpacking help.
Petitioners were still residing in their RV camper’s temporary housing when
they timely filed their 2015 income tax return and mistakenly listed their current
address as the old Pennsylvania address where they resided before their move. On
the return petitioners claimed a moving expense deduction of $26,439. Petitioners
attached to their return Form 3903, Moving Expenses. The Form 3903 reports
$25,000 for “transportation and storage of household goods and personal effects”
expenses and $1,439 for “travel” expenses. The reported amounts represent the
expense of moving the contents of their home plus mileage.
On February 21, 2017, respondent issued a notice of deficiency disallowing
the claimed deduction for moving expenses. Computational adjustments were also
made to petitioners’ claimed student loan interest deduction, child tax credit, and
adoption credit. -5-
Discussion
The Commissioner’s determination of a taxpayer’s liability in a notice of
deficiency is presumed correct, and the taxpayer bears the burden of proving that
the determination is incorrect. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115
(1933). Because respondent has conceded that petitioners are not liable for an
accuracy-related penalty, we need not discuss the burden of production. See
sec. 7491(a).
Section 217(a) allows as a deduction “moving expenses paid or incurred
during the taxable year in connection with the commencement of work by the
taxpayer as an employee or as a self-employed individual at a new principal place
of work.” Section 217(b) generally defines the term “moving expenses” as the
reasonable expenses of moving household goods and personal effects from the
former residence to the new residence and related travel, including lodging. See
Work v. Commissioner, T.C. Memo. 2005-259. Tax deductions are a matter of
legislative grace, and the taxpayer bears the burden of proving entitlement to any
deduction claimed. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79,
84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934).
We do not doubt that petitioners moved from Pennsylvania to Georgia
because of petitioner wife’s employment change. See Zilberberg v. Commissioner, -6-
T.C. Memo. 2011-5. But see Olagunju v. Commissioner, T.C. Memo. 2012-119;
Mandeville v. Commissioner, T.C. Memo. 2007-332. Petitioners have met their
burden of showing that petitioner wife’s new place of employment was “at least 50
miles farther from * * * [her] former residence than was * * * [her] former
principal place of work”. See sec. 217(c)(1)(A). Furthermore, there is sufficient
evidence that petitioner wife continued to be employed full time in the new general
location for at least 39 weeks “during the 12-month period immediately following
* * * [her] arrival in the general location of * * * [her] new principal place of
work”. See sec. 217(c)(2)(A).
Petitioners have less support to substantiate the cost of their move. They
could not recall the name of the “mom and pop” moving company they hired, nor
did they submit receipts. See Zilberberg v. Commissioner, T.C. Memo. 2011-5.
Petitioners did, however, submit credit card statements; a document showing
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T.C. Summary Opinion 2021-37
UNITED STATES TAX COURT
FORREST CRAWLEY AND SHAWNA CRAWLEY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 8246-17S. Filed November 16, 2021.
Forrest Crawley and Shawna Crawley, pro sese.
Christopher Bradley and Caitlin O’Riordan (student), for respondent.
SUMMARY OPINION
WELLS, Judge: This case was heard pursuant to the provisions of section
7463 of the Internal Revenue Code in effect when the petition was filed. 1 Pursuant
1 Unless otherwise indicated, section references are to the Internal Revenue Code of 1986, as amended and in effect for the year in issue. Rule references are to the Tax Court Rules of Practice and Procedures.
Served 11/16/21 -2-
to section 7463(b), the decision to be entered is not reviewable by any other court,
and this opinion shall not be treated as precedent for any other case. After
concessions, 2 the remaining issue is whether petitioners are entitled to deduct
$26,439 in moving expenses on their 2015 Form 1040, U.S. Individual Income Tax
Return.
Background
When they timely filed the petition, petitioners resided in Georgia. The
stipulation of facts and attached exhibits are incorporated herein by this reference.
Petitioner wife in 2015 began working as a UPS Training & Development
Manager in Pennsylvania. Sometime between November 16 and December 1,
2015, she transferred to a workplace in the Atlanta, Georgia, metropolitan area.
Petitioner wife’s position changed to “Assistant Center Manager” in Atlanta on
December 7, 2015. Petitioner wife remained at UPS during 2016 and 2017.
Petitioner wife first moved by herself to a recreational vehicle (RV) park in
Atlanta and lived in the family’s 33-foot RV camper. Petitioners paid various RV-
related charges in both Branchville, New Jersey, and McDonough, Georgia. Two
of these charges were for $530 each paid to Atlanta South RV Park in McDonough
2 Respondent concedes that petitioners are not liable for a penalty pursuant to sec. 6662. -3-
on November 28 and December 28, 2015. An undated copy of prices for Atlanta
South RV Park shows a monthly rate of $560 for the RV site. Petitioner husband
stayed in Pennsylvania until their children finished school. Petitioners continued
to incur charges during November and December 2015 in Pennsylvania and
Georgia.
At the end of 2015 petitioners hired a “mom and pop” moving company to
pack the contents of their 3,500-square-foot house, a boat, a four wheeler, four dirt
bikes, three motorcycles, and two cars. Petitioners ultimately moved the bikes and
the boat themselves. Petitioners chose the “mom and pop” moving company
because it was the cheapest; they had priced a competitor, Mayflower, at roughly
$30,000.
On November 23, 2015, petitioner wife sold $21,835 worth of UPS stock.
Petitioners used the proceeds from this sale to fund their move. The proceeds were
direct deposited into petitioners’ bank accounts, from which petitioners made two
cash withdrawals in $100 bill increments; the first withdrawal was around $12,000
and the second around $8,000. Petitioners used cash to pay the movers in full
before the items were delivered in Georgia.
Petitioner husband and the children moved to Georgia in December 2015.
At that point the family joined petitioner wife in the RV camper. Petitioners’ -4-
household items were delivered to a storage unit in Georgia in January 2016.
Petitioners moved into a rental house, and then found a home to buy in spring
2016. In the multiple moves petitioners lost track of the records detailing their
moving expenses. Petitioners instead submitted a 2018 internet article estimating
that an interstate move costs between $2,000 and $5,000 for the transportation;
plus 50 cents per pound; plus $25-$50 per hour per mover for packing and
unpacking help.
Petitioners were still residing in their RV camper’s temporary housing when
they timely filed their 2015 income tax return and mistakenly listed their current
address as the old Pennsylvania address where they resided before their move. On
the return petitioners claimed a moving expense deduction of $26,439. Petitioners
attached to their return Form 3903, Moving Expenses. The Form 3903 reports
$25,000 for “transportation and storage of household goods and personal effects”
expenses and $1,439 for “travel” expenses. The reported amounts represent the
expense of moving the contents of their home plus mileage.
On February 21, 2017, respondent issued a notice of deficiency disallowing
the claimed deduction for moving expenses. Computational adjustments were also
made to petitioners’ claimed student loan interest deduction, child tax credit, and
adoption credit. -5-
Discussion
The Commissioner’s determination of a taxpayer’s liability in a notice of
deficiency is presumed correct, and the taxpayer bears the burden of proving that
the determination is incorrect. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115
(1933). Because respondent has conceded that petitioners are not liable for an
accuracy-related penalty, we need not discuss the burden of production. See
sec. 7491(a).
Section 217(a) allows as a deduction “moving expenses paid or incurred
during the taxable year in connection with the commencement of work by the
taxpayer as an employee or as a self-employed individual at a new principal place
of work.” Section 217(b) generally defines the term “moving expenses” as the
reasonable expenses of moving household goods and personal effects from the
former residence to the new residence and related travel, including lodging. See
Work v. Commissioner, T.C. Memo. 2005-259. Tax deductions are a matter of
legislative grace, and the taxpayer bears the burden of proving entitlement to any
deduction claimed. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79,
84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934).
We do not doubt that petitioners moved from Pennsylvania to Georgia
because of petitioner wife’s employment change. See Zilberberg v. Commissioner, -6-
T.C. Memo. 2011-5. But see Olagunju v. Commissioner, T.C. Memo. 2012-119;
Mandeville v. Commissioner, T.C. Memo. 2007-332. Petitioners have met their
burden of showing that petitioner wife’s new place of employment was “at least 50
miles farther from * * * [her] former residence than was * * * [her] former
principal place of work”. See sec. 217(c)(1)(A). Furthermore, there is sufficient
evidence that petitioner wife continued to be employed full time in the new general
location for at least 39 weeks “during the 12-month period immediately following
* * * [her] arrival in the general location of * * * [her] new principal place of
work”. See sec. 217(c)(2)(A).
Petitioners have less support to substantiate the cost of their move. They
could not recall the name of the “mom and pop” moving company they hired, nor
did they submit receipts. See Zilberberg v. Commissioner, T.C. Memo. 2011-5.
Petitioners did, however, submit credit card statements; a document showing
liquidation of stock roughly matching the reported moving expense; and price
listings for their temporary housing. Petitioner husband further testified as to the
precise months and sequence of their moves and their locations. If a taxpayer
establishes a deductible expense but is unable to substantiate the precise amount,
we may, after “bearing heavily * * * upon the taxpayer whose inexactitude is of his
own making”, estimate the amount, provided we are convinced that the taxpayer -7-
incurred such an expense and we have a basis upon which to make an estimate.
Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d Cir. 1930).
We decide, on the basis of the documents submitted and petitioner
husband’s testimony, that petitioners are entitled to deduct the following expenses:
$20,000 for the “mom and pop” moving company; $1,439 for travel expenses; and
$530 for lodging. These expenses represent the trip from the former residence to
the new place of residence for petitioner wife and the rest of the household, despite
their not traveling all at once. See sec. 1.217-2(b)(4), Income Tax Regs. In doing
so, we recognize that even though petitioners failed to fully substantiate their
claimed $26,439 moving expense deduction, they had to have paid expenses such
as the cost of the movers, boxes, and gas in moving their personal property and
various vehicles. See Cohan v. Commissioner, 39 F.2d at 543-544; see also Fogg
v. Commissioner, 89 T.C. 310 (1987) (allowing deduction for the expense of
moving a sailboat); Zilberberg v. Commissioner, T.C. Memo. 2011-5; Clark v.
Commissioner, T.C. Memo. 1989-598 (allowing a $200 moving expense deduction
when the taxpayer claimed $500 but provided no receipts), aff’d without published
opinion, 951 F.2d 1258 (10th Cir. 1991). Petitioners’ credit cards provide
sufficient substantiation to prove the $530 expense for lodging. Petitioners’ $1,439
cost for travel and gas is reasonable for their significant interstate move, which -8-
included a boat and several motorcycles. Petitioner husband, who testified under
oath and who we find credible, testified that petitioners withdrew $8,000 and
$12,000 in cash to pay the “mom and pop” moving company. Petitioners
substantiated the sale of stock that funded the withdrawals, and respondent has
given us no reason to disbelieve petitioner husband’s testimony. We give little
weight to the article petitioners provided, but we do give it enough weight to
corroborate that travel expenses below $2,000 and a cost of $20,000 to pack, move,
and unload the contents of a 3,500-square-foot house, a boat, a four wheeler, four
dirt bikes, three motorcycles, and two cars are reasonable.
Accordingly,
Decision will be entered under
Rule 155.