United States Third Circuit

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Crispin v. Commissioner of Internal Revenue, 12-2275

Tax Court's decision that petitioner was not entitled to an ordinary loss deduction for his participation in a Custom Adjustable Rate Debt Structure (CARDS) transaction and that he is liable for an accuracy-related penalty is affirmed, where: 1) there was no error in the Tax Court's finding that the CARDS transaction lacked economic substance; 2) petitioner's underpayment is "attributable to" a valuation misstatement of over 400 percent, and the 40 percent penalty is applicable to his underpayment of his 2001 taxes; and 3) there was nothing reasonable about petitioner's reliance on the Pullman Opinion to immunize him from the underpayment penalty.

Appellate Information

  • Decided 02/25/2013
  • Published 02/25/2013




  • United States Third Circuit


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