“Asset protection is a legitimate, legally sanctioned objective; though one that has limitations of its own.” The timing of asset protection planning can be critical when it comes to these “limitations.” By the time a creditor is reasonably foreseeable, the creditor may be able to stop or unwind transfers of assets whether through obtaining an…
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When the Mississippi Department of Revenue (“MDOR”) conducts an audit, one can be surprised by how much discretion MDOR has in reconstructing sales and assessing liability. A recent decision from the Mississippi Court of Appeals, Ha v. Graham, 2025 WL 2397562 (Miss. Ct. App. Aug. 19, 2025), highlights the risks of failing to maintain adequate…
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In Beleiu v. Commissioner, T.C. Memo. 2025-70, the Tax Court sustained civil fraud penalties under Internal Revenue Code (“IRC”) § 6663 against the taxpayer for tax years 2012 through 2014. While the deficiencies themselves were not disputed by the time of trial, the heart of the controversy centered on whether the underpayments stemmed from fraud.…
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Overview Mississippi’s Supreme Court recently delivered some clarity for anyone juggling out-of-state purchases, use tax compliance, and delivery logistics. In a recent case, the Court addressed a classic “gray area”: Does a taxpayer owe use tax on shipping costs when that taxpayer, as the purchaser, separately hires the freight company?[1] The Court answered, in short,…
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In a previous article, The Often-Overlooked Benefits of Qualified Small Business Stock, I discussed the significant benefits available to taxpayers holding qualified small business stock (“QSBS”), which is defined under Section 1202 of the Internal Revenue Code (“IRC”). While significant then, the recently enacted One Big Beautiful Bill (“OBBB”)[1] amended IRC § 1202[2] to substantially…
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In a recent case issued from the United States District Court for the Eastern District of California, the Court held that a Trustee’s reliance on the advice of a CPA that no trust income tax return was due was enough to establish reasonable cause for such failure and thus avoid late payment and filing penalties.[1]…
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Clients often ask about the protections that their children and/or other beneficiaries of their estate plan possess, particularly when discussing their fiduciary appointments and the safeguards in place to ensure such fiduciary fulfills their duties to the beneficiaries. While the specific discussion and citations in this article are limited to rights of beneficiaries in Mississippi,…
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Anyone paying attention knows that stock markets have been volatile. As a simple example, the Dow Jones Industrial Average saw an increase of over 600 points (1.56%) on April 11 after dropping over 1,000 points (2.5%) on April 10. Similarly, the S&P 500 gained 9.5% on April 9, but dropped 3.5% on April 10. Generally,…
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A recent Tax Court decision underscores an increasingly rigorous examination of Section 831(b) microcaptive insurance arrangements.[1] This ruling may be insightful to taxpayers considering or currently operating microcaptives, has broad implications for businesses seeking legitimate tax incentives created by Congress. Overview of the Case The case at hand involves the Internal Revenue Service’s (“IRS”) rejection…
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With the filing deadline for individuals to file their income tax returns approaching and people becoming more acutely aware of how much in taxes they will pay for the last year, now, perhaps more than other times of the year, I receive comments from people about “starting an LLC to reduce taxes,” or “having expenses…
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