In a recent opinion handed down by the United States District Court for the District of New Jersey, the Court dismissed the taxpayer’s suit for a refund on the basis of lack of jurisdiction. The Court found the taxpayer failed to file the suit for a refund within the two year deadline set forth by…
Read More
Introduction This is the second article in a series of articles we are doing on IRS audits. The purpose of this series is to demystify the audit process, inform readers about how IRS audits are conducted, and provide readers with an understanding of the audit process. In Part I of this series, we discussed how…
Read More
By holding qualified small business stock (“QSBS”), noncorporate shareholders of qualifying C corporations can sell their stock tax free after a five-year holding period. Tax benefits associated with QSBS are nothing new. However, until recently, planning with QSBS has been neglected. The Tax Cuts and Jobs Act (“TCJA”) breathed new life into the potential benefits…
Read More
For a few months, the short and mid-term applicable federal rates have been on the heels of one another. These rates ride with treasury rates and the economy in general. For some reason, here lately the mid-term rates have been lower on occasion than the short-term rates. I even caught myself thinking, is this a…
Read More
In a recent Memorandum opinion issued by the Tax Court, the Court held that the 60-day time limit for individual retirement account (“IRA”) rollovers was met for a distribution and subsequent recontribution of IRA funds despite the funds not being credited back to the IRA upon recontribution until 62 days after the initial distribution. The IRS…
Read More
Introduction This article is the first article in a multi-part series of articles that I will be doing on IRS audits. The purpose of this series is to demystify the audit process, inform readers about how audits are conducted, and provide readers with an understanding of what to expect if selected for examination. This article…
Read More
Timely mailing is timely filing. Seriously, it is. In the case of Curtiss T. Williams, we are reminded of how important it is to ensure compliance and maintain proof of compliance with the mailbox rule of the Internal Revenue Code. While really just a mundane case of a taxpayer getting his petition dismissed due to late filing,…
Read More
Offshore and domestic asset protection trusts (“APT”) have been around for a while. Currently, there are seventeen states that allow a person to contribute assets to trust for their own benefit (i.e. a self-settled trust) and exempt those assets from claims of their own creditors subject to certain statutes of limitations and exception creditors. Other than…
Read More
Overview The United States Supreme Court issued a unanimous opinion on June 21, 2019 in North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust ruling that a trust beneficiary’s residence alone is not sufficient grounds for a state to tax a trust’s undistributed income. This decision disallowed the assessment of more than…
Read More
The Tax Court recently issued decisions in Kearse v. Commissionerand Commission v. Romano-Murphy (“Romano-Murphy II“). Both cases involved review of administrative determinations made by IRS appeals officers in collections due process (“CDP”) proceedings. Section 6330(c)(1) requires appeals officers conducting CDP hearings to verify that the requirements of any applicable law or administrative procedure related to the assessment…
Read More