Tax Court Scolds IRS for Talking Out of Many Mouths But Rules in Their Favor

In a recent Tax Court Memorandum opinion, the Court was not too pleased with the operations and the administrative proceedings of the IRS involving Notices of Deficiency issued to a taxpayer. The taxpayer represented himself and was subjected to a confusing series of communications with the IRS causing the Court to sympathize with the taxpayer in…
Read More

Postmark Rule 180 in Refund Case Ruling – Harrison

In a recent case out of the U.S. District Court in Wisconsin, the Court granted a motion to reconsider its previous ruling in favor of the government (filed by the IRS) in a case involving the postmark rule. Additionally, the IRS was the recipient of some pretty strong criticism from the Court. So much so,…
Read More

An Update on Cryptocurrency and the IRS

There was a lot of movement from the IRS involving cryptocurrencies in 2019. Prior to 2019, the IRS had issued just one piece of guidance regarding cryptocurrencies. That was by issuance of Notice 2014-21 in which the IRS let us know it would treat cryptocurrencies as capital assets rather than as a currency. There are…
Read More

My Favorite Presentation from Heckerling

I was fortunate enough to attend the 54th annual Heckerling Institute on Estate Planning in Orlando. Heckerling is known worldwide for being one of the most innovative and informative estate planning conferences put on. The topics are always relevant and timely, and there are always some new and innovative planning techniques and ideas presented. Additionally,…
Read More

Substance over Form: No Friend of the Taxpayer

In the recent Messina case, the Ninth Circuit Court of Appeals affirmed the decision of the Tax Court denying S corporation shareholders losses as a result of lack of basis, particularly in this case, debt basis. In rendering their opinions, the Ninth Circuit and Tax Court discussed a taxpayer’s ability to argue substance over form…
Read More

MCM Investment Management LLC – Related Parties and a Worthless Interest Deduction

In a recent taxpayer-favorable case, the Tax Court upheld a loss deduction for a worthless investment under Code Section 165. At issue was an interest held by a partnership in a related family-owned real estate development business. The taxpayer, MCM Investment Management LLC (“MCM”) alleged its interest in McMillin Companies, LLC (“InvestCo”), a real estate…
Read More

The Secure Act: Changes to the RMD Rules of Inherited Retirement Accounts

On December 20, 2019, President Donald Trump signed the Setting Every Community Up for Retirement (Secure) Act into law as part of the year-end spending bill. The Secure Act (the “Act”) goes into effect on January 1, 2020 and makes a host of changes to retirement plan laws. Among these changes are significant changes to…
Read More

Are Your Life Insurance Death Benefits Taxable?

The income taxation of life insurance death benefits seems fairly simple initially. Many people know the general rule that death benefits are not subject to income tax. However, there are exceptions that can apply which will cause the beneficiary to owe income tax on the receipt of death benefits. This article describes certain of these…
Read More

Democratic Presidential Candidates: Tax Plans

As the race for the Democratic nomination for President heats up and the first primary election taking place in just 3 months, candidates have begun to release more details about their proposed tax plans.  While these proposed plans will undoubtedly evolve and change over time and are of course subject to being passed by Congress,…
Read More