Texas Fiduciary Litigator: Business Divorce: Court Held That Parties Did Not Form A Partnership Where Certain Express Conditions Precedent Were Not Met (April 10, 2021)

David Fowler Johnson, in his Texas Fiduciary Litigator Blog, discusses Anubis Pictures, LLC v. Selig. The abstract is as follows: Parties often begin a business together without thinking through all of the legal details that define their rights. When they eventually divorce, they need to resort to the language in agreements that they entered into … Continue reading Texas Fiduciary Litigator: Business Divorce: Court Held That Parties Did Not Form A Partnership Where Certain Express Conditions Precedent Were Not Met (April 10, 2021)

Texas Fiduciary Litigator: Court Finds That Party Lacked Standing In A Probate Proceeding Where She Was Not An Informal Spouse (April 10, 2021)

David Fowler Johnson, in his Texas Fiduciary Litigator Blog, discusses In re Estate of Pandozy. The abstract of the webinar is as follows: In In re Estate of Pandozy, a woman attempted to intervene in a probate proceeding claiming that she was the informal spouse of the decedent. No. 05-19-00755-CV, 2021 Tex. App. LEXIS 1265 (Tex. … Continue reading Texas Fiduciary Litigator: Court Finds That Party Lacked Standing In A Probate Proceeding Where She Was Not An Informal Spouse (April 10, 2021)

IRS Reminds Taxpayers of Automatic Filing Extensions (April 29, 2021)

Anyone can request an automatic tax-filing extension, but some people get extra time without asking, according to the IRS. Due to the ongoing pandemic, this year the IRS postponed the usual April 15 deadline for filing individual income tax returns until May 17, 2021. Even so, as is the case every year, many Americans will still need … Continue reading IRS Reminds Taxpayers of Automatic Filing Extensions (April 29, 2021)

IRS provides options for gig economy workers and those with unemployment benefits (April 29, 2021)

The IRS reminds workers in the gig economy and those who claimed unemployment compensation in 2020 of their options and where to find information on meeting their tax obligations. Gig economy The gig economy refers to income earned providing on-demand work performing services or selling goods, including driving a car for booked rides or deliveries, … Continue reading IRS provides options for gig economy workers and those with unemployment benefits (April 29, 2021)

Barker v. Comm’r: Tax Court Properly Upheld Income Tax Deficiency (April 27, 2021)

In Barker v. Commissioner of Internal Revenue, No. 19-11994 (11th Cir. 2021), the Tax Court’s upholding of the IRS’s determination of an income tax deficiency (individual) was affirmed. The taxpayer started an entertainment company (partnership for tax purposes). As a passthrough entity, the company paid no income tax and its losses flow directly through to … Continue reading Barker v. Comm’r: Tax Court Properly Upheld Income Tax Deficiency (April 27, 2021)

Michael Boulware v. Cir.: No Abuse of Discretion Found in Tax Court’s Denial of Individual’s Motion for Reconsideration of Fraud Penalty (April 27, 2021)

In Michael Boulware v. Cir, No. 19-73235 (9th Cir. 2021), The Tax Court did not abuse its discretion by denying an individual's motion for reconsideration of a fraud penalty. The IRS issued two separate notices of deficiencies determining civil deficiencies in tax along with penalties for several tax years at issue. The taxpayer filed two … Continue reading Michael Boulware v. Cir.: No Abuse of Discretion Found in Tax Court’s Denial of Individual’s Motion for Reconsideration of Fraud Penalty (April 27, 2021)

Marvin A. Kirsne (Greenberg Traurig LLP): State Sales Tax on Sale of Non-Fungible Tokens (NFTs) – Questions and Answers (April 29, 2021)

Marvin A. Kirsner, of Greenberg Traurig LLP, has have made available for download his article, “State Sales Tax on Sale of Non-Fungible Tokens (NFTs) – Questions and Answers,” published in Greenberg Traurig Alert. The abstract is as follows: Non-fungible tokens (NFTs), which can be used as a medium for art, music, video clips, trading cards, and other collectibles have recently … Continue reading Marvin A. Kirsne (Greenberg Traurig LLP): State Sales Tax on Sale of Non-Fungible Tokens (NFTs) – Questions and Answers (April 29, 2021)

Haghnazarzadeh, T.C. Memo. 2021-47: Married Couple Had Unreported Income in Bank Accounts Now Owes IRS Nearly $3 Million (April 29, 2021)

The Tax Court released Memorandum Opinion for Josef Haghnazarzadeh and Catherine Y. Haghnazarzadeh v. Commissioner of Internal Revenue, T.C. Memo. 2021-47 (April 29, 2021) and announced that decision will be entered under Rule 155. A married couple had unreported taxable income for two tax years at issue. The taxpayers did not produce books or records … Continue reading Haghnazarzadeh, T.C. Memo. 2021-47: Married Couple Had Unreported Income in Bank Accounts Now Owes IRS Nearly $3 Million (April 29, 2021)

Joint Committee On Taxation Issues Reports on Securing A Strong Retirement Act Of 2021 (May 4, 2021)

The Joint Committee on Taxation has released its publication, Description Of The Chairman's Amendment In The Nature Of A Substitute To H.R.__, The "Securing A Strong Retirement Act Of 2021", on May 4, 2021. To download report, JCX-23-21, click: Description Of The Chairman's Amendment In The Nature Of A Substitute To H.R.__, The "Securing A Strong … Continue reading Joint Committee On Taxation Issues Reports on Securing A Strong Retirement Act Of 2021 (May 4, 2021)

IRS and Treasury Released Draft Schedules K-2 and K-3 (IR-2021-98) (April 30, 2021)

The Treasury and the IRS released updated early drafts of new Schedules K-2 and K-3 for Forms 1065, 1120-S, and 8865 for tax year 2021 (filing season 2022). The schedules are designed to provide greater clarity for partners and shareholders on how to compute their U.S. income tax liability with respect to items of international … Continue reading IRS and Treasury Released Draft Schedules K-2 and K-3 (IR-2021-98) (April 30, 2021)

IRS Memorandum 202117012: Treatment of expenses related to aircraft owned and used by sole proprietor (April 30, 2021)

In IRS Memorandum 202117012 (April 30, 2021), IRS Chief Counsel concluded that a sole proprietor that owned an aircraft (either directly or indirectly through a disregarded entity) was allowed to use the primary purpose test in Reg. §1.162-2(b)(1) to determine whether expenses for use of the aircraft by him were deductible. Further, the Chief Counsel … Continue reading IRS Memorandum 202117012: Treatment of expenses related to aircraft owned and used by sole proprietor (April 30, 2021)

Romano-Murphy v. Commissioner of IRS (11th Cir. 2016): Individual Was Personally Liable for Unpaid Trust Fund Recovery Penalties

The Court of Appeals for the Eleventh Circuit affirmed a district court's judgment that an individual was personally liable for trust fund recovery penalties (TFRP) under Code Sec. 6672 . The taxpayer was the president and sole shareholder of a company. The taxpayer retained the services of a treasurer and accountant who prepared and signed … Continue reading Romano-Murphy v. Commissioner of IRS (11th Cir. 2016): Individual Was Personally Liable for Unpaid Trust Fund Recovery Penalties

Plentywood Drug Inc. v. Commissioner, T.C. Memo. 2021-45 (April 26, 2021): Fair Market Rent For Pharmacy Building Determined

The Tax Court determined the fair market rent for a building which had four owners and was rented by a pharmacy situated in a state which had a nondisclosure policy for real-estate data. The IRS had disallowed the rent claimed by the owners as ordinary and necessary business expense and issued notices of deficiency to … Continue reading Plentywood Drug Inc. v. Commissioner, T.C. Memo. 2021-45 (April 26, 2021): Fair Market Rent For Pharmacy Building Determined

AICPA Tax Insider (April 29, 2021): Property tax relief planning; Expenses paid with 2020 PPP loans can be deducted on 2021 tax returns; and More!

Property tax relief planning during times of COVIDBy Josh Malancuk, CPA, and Karen Koch, CPAHow to help clients navigate the ongoing crisis and come out on top. Expenses paid with 2020 PPP loans can be deducted on 2021 tax returnsLegislation in late 2020 overruled the IRS's position that expenses resulting in Paycheck Protection Program (PPP) … Continue reading AICPA Tax Insider (April 29, 2021): Property tax relief planning; Expenses paid with 2020 PPP loans can be deducted on 2021 tax returns; and More!

Holland & Knight Alert: Biden’s American Families Plan Proposes Income Tax Hikes (APRIL 29, 2021)

Alan Winston Granwell,  Joshua David Odintz, and  Liam D. Crane of Holland & Knight LLP, have made available for download their article, "Biden's American Families Plan Proposes Income Tax Hikes” published as a Holland & Knight Alert. The abstract is as follows: The American Families Plan is the third part of the Biden Administration's Build Back Better agenda, … Continue reading Holland & Knight Alert: Biden’s American Families Plan Proposes Income Tax Hikes (APRIL 29, 2021)

Steven Dean and Attiya Waris: Ten Truths About Tax Havens: Inclusion and the ‘Liberia’ Problem (April 8, 2021)

Steven Dean and Attiya Waris, of Brooklyn Law School and University of Nairobi, have made available for download their article, Ten Truths About Tax Havens: Inclusion and the ‘Liberia’ Problem, published in Emory Law Journal, Vol. 70, No. 7, 2021 and Brooklyn Law School, Legal Studies Paper No. 670. The abstract is as followed: There … Continue reading Steven Dean and Attiya Waris: Ten Truths About Tax Havens: Inclusion and the ‘Liberia’ Problem (April 8, 2021)

Treasury Releases Report on Investing in the IRS and Improving Tax Compliance (April 28, 2021)

The U.S. Department of Treasury has released a report discussing investment in the IRS and improving tax compliance. IRS has difficulty identifying income from unverified sources and whether if it is properly reported. Non-compliance is concentrated at the top of the distribution. The press release begins as follows: A well-functioning tax system requires that all … Continue reading Treasury Releases Report on Investing in the IRS and Improving Tax Compliance (April 28, 2021)

Costello v. Comm’r: Married Couple Disallowed Various Deductions (January 25, 2021)

In Costello v. Comm'r, T.C. Memo. 2021-9, the Tax Court held disallowance of deductions for losses from farming activity sustained because losses were startup expenses for which I.R.C. sec. 195(a) prohibits a current deduction, disallowance of operating loss deduction for first rental property sustained because not held for rental, and etc.. A married couple was … Continue reading Costello v. Comm’r: Married Couple Disallowed Various Deductions (January 25, 2021)

IRS Office of Chief Counsel’s first National Virtual Settlement Month successful in resolving almost 150 Tax Court cases (April 26, 2021)

The IRS Office of Chief Counsel has hosted its first National Virtual Settlement Month in March 2021. The results are impressive. The Press Release begins as follows: Settlement Days events are coordinated efforts to resolve cases in the United States Tax Court by providing taxpayers who are not represented by counsel the opportunity to receive … Continue reading IRS Office of Chief Counsel’s first National Virtual Settlement Month successful in resolving almost 150 Tax Court cases (April 26, 2021)

IRS provides guidance for employers claiming the Employee Retention Credit for first two quarters of 2021 (April 2, 2021)

The IRS has issued guidance for employers claiming the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act). Notice 2021-23 PDF explains the changes to the Employee Retention Credit for the first two calendar quarters of 2021, including: … Continue reading IRS provides guidance for employers claiming the Employee Retention Credit for first two quarters of 2021 (April 2, 2021)