Blum v. Commissioner’s Empirical Analysis

Citation profile

2 federal appellate · 2 district ·

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 10 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “In determining whether reasonable cause and good faith exist, the most important factor is ‘the extent of the taxpayer’s effort to assess the taxpayer’s proper tax liability’ judged in light of his experience, knowledge, and education. 26 C.F.R. § 1.6664-4 (b). A common issue within the reasonable cause analysis is the taxpayer’s reliance on the advice of a professional tax advisor. Such reliance, however, ‘does not necessarily demonstrate reasonable cause.’ 26 C.F.R. § 1.66644 (b). Professional advice providing the basis of a reasonable cause defense typically exhibits certain characteristics, of which three are particularly applicable in this case. First, the advice must be independent. Second, the advice must be based on all relevant facts and no inaccurate factual representations. And third, reasonable cause requires that the taxpayer actually receive the advice and rely upon it before claiming the tax benefit.”

   1 later decision quote this exact passage · from the majority
   e.g. 158 F. Supp. 3d 1140 - Blanco v. United States

2. “Evidence that a transaction was designed to 'produce a massive tax loss' indicates the transaction lacks economic substance.”

   1 later decision quote this exact passage · from the majority
   e.g. United States v. Rapower-3, LLC

3. “The probability of earning a profit must be reasonable, not a mere possibility.”

   1 later decision quote this exact passage · from the majority
   e.g. United States v. Rapower-3, LLC