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Tax Coda

Court upholds $2.2 million income adjustment in MedCafe case

Clinco v. Commissioner, T.C. Memo. No. 8077-23. Court Opinion

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Tax Coda
Feb 19, 2026
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The Tax Court sustained a large income adjustment based on Forms 1099 and a bank deposits analysis, rejected unsupported depreciation deductions, and criticized counsel for citing nonexistent cases.

Holding

The Court held that the notice of deficiency was valid, that MedCafe’s gross receipts were substantially understated for 2015, and that the taxpayers …

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