Portland doctors lose tax case

A group of Portland doctors lost a tax case in U.S. Tax Court and are liable for more than $450,000 in back taxes and penalties.

The doctors were all specialists in anesthesiology and the group also included the group's accountant. The doctors operated in the late 1990s as University Anesthesiologists P.C. and provided medical services to patients of the Oregon Health & Science University Hospital.

Seven years ago, the doctors consolidated into a single consolidated medical practice group and donated their stock in their medical professional service corporation to a charity, claiming charitable donations of $401.79 per share.

The tax court disagreed, and last week ruled that the shares were valued at $35 to $37 per share, and the doctors were denied the higher tax benefits.

The case was Bradley J. Bergquist and Angela Kendrick et al., Petitioners, v. Commissioner of Internal Revenue, Respondent, 131 T.C. No. 2.