- 9 -
when there is a substantial possibility that such claim will be
resolved in the taxpayer's favor. See Ramsay Scarlett & Co. v.
Commissioner, supra at 811. The issue is one of fact, to be
decided on the basis of all of the facts and circumstances. See
Boehm v. Commissioner, 326 U.S. 287, 292-293 (1945); Dawn v.
Commissioner, 675 F.2d 1077, 1078 (9th Cir. 1982), affg. T.C.
Memo. 1979-479; sec. 1.165-1(d)(2)(i), Income Tax Regs.
Petitioners’ residence was damaged by the Northridge
earthquake on January 17, 1994. Thereafter, petitioners filed an
application for Disaster Housing Assistance with FEMA and
obtained financial assistance no later than August 1994.
Although the check that petitioners received may have been for
less than they would have wished, the record suggests that
petitioners did not appeal FEMA’s August 26, 1994, decision.
Although petitioners filed a second application with FEMA in
January 1995, this application was for damage caused by flooding
rather than by earthquake. In any event, FEMA responded to this
application on April 4, 1995, and denied petitioners’ appeal
later that month.
Finally, petitioners sought disaster relief from both SBA
and the California State Department of Social Services. However,
the record is not clear whether the relief sought was in respect
of damage caused by the Northridge earthquake. In any event,
both SBA and the California State Department of Social Services
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011