Allocating value to personal goodwill can materially affect the tax consequences of a business sale, estate valuation, or gift transfer. But the planning only works when the facts support that the goodwill truly belongs to an individual rather than the business entity. In any business enterprise, goodwill can be a significant and valuable asset. Goodwill…
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In a recent Tax Court case, Shryock v. Commissioner, T.C. Memo. 2026-44, the Tax Court sustained income tax deficiencies and additions to tax against a taxpayer who failed to file federal income tax returns for 2011, 2012, and 2013, failed to report income from a for-profit business operating under the name Boobies Rock! Inc. (“BR”),…
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In a significant taxpayer-favorable decision[1], the Fourth Circuit recently held that erroneous refunds of underpayment interest may constitute “unpaid tax” eligible for equitable innocent spouse relief under Section 6015(f) of the Internal Revenue Code (“Code”). Section 6015(f) provides an avenue for relief (at the IRS’s discretion) for unpaid tax or a deficiency when it would…
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On April 22, 2026, Acting Attorney General Todd Blanche signed a final order (“Final Order”)[1] immediately rescheduling state-licensed medical marijuana from Schedule I to Schedule III of the Controlled Substances Act (“CSA”),[2] pursuant to President Trump’s 2025 Executive Order directing federal agencies to expedite the rescheduling of medical marijuana.[3] This change may materially affect the…
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A recent Tax Court case involved estate tax valuation and procedure relating to a deceased founder’s interest in a medical device company.[1] Following his passing, his estate reported based on an alternative valuation date, including the business interest to be valued at zero.[2] Later, the company sold for $15 million. The IRS asserted a large…
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We have written before the importance of a property prepared Form 706 Estate (and Generation Skipping Transfer) Tax Return (“706”)[1] as well as the importance of a properly prepared Form 709 Gift Tax Return[2]. In our prior article discussing the 706, we highlighted a Private Letter Ruling (“PLR”) in which the Estate was granted a…
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A recent federal district court decision[1] highlights the significant risk that beneficiaries and fiduciaries may face when estate assets are distributed before federal estate tax liabilities have been fully satisfied.[2] In United States v. Karst, the court granted summary judgment in favor of the government and held that the decedent’s sons, who were named as…
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In Palmwood Holdings, LLC v. Comm’r, the United States Tax Court granted partial summary judgment in favor of the IRS, holding that the Service satisfied the supervisory approval requirement of section 6751(b) with respect to a civil fraud penalty first asserted in the IRS’ answer. The decision reinforces a growing body of Tax Court precedent…
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Use of irrevocable trusts is common in a number of planning scenarios – tax planning, estate planning, business succession, Medicaid qualification, asset protection, etc. Just like there are several reasons irrevocable trusts are created, there can be reasons why a trust may be terminated before the expiration of the term stated in the trust agreement.[1]…
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The Mississippi Supreme Court recently revisited the intersection of family law and probate.[1] The decision offers a reminder that alimony obligations, while enforceable during a recipient’s life, remain subject to statutes of limitation and proper crediting principles that can determine whether an estate owes anything at all. The case at hand offers an interesting twist…
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