Most Recent Posts
Tax Court Threatens To Sanction Courtroom Commando Mac MacPherson
If “Mac” ultimately gets his clients out of having to pay, because the IRS flubbed on the paperwork, I will have to tip my hat to him for a masterful piece of work. Even if he loses, I still can’t knock him for being overzealous. On the other hand, I go back to my original take on the case. I think the collection due process system and under-funding of IRS compliance efforts is trending to, in practice, making income tax payment close to optional.
TIGTA Alimony Report May Cause Crisis Of Conscience Among Tax Professionals
The bottom line is that I used to believe that when I was telling people to do the right thing, I was also telling them to do the smart thing – that the risk of non-compliance outweighs the benefits. That confidence has been eroding in me for some time with respect to people who just want to maximize their lifestyle and are not too worried about their credit rating, but knowing now that something so blatantly wrong will more than likely slide by, not because the IRS can’t find it, but just because they lack the resources to look into it is very disturbing.
Real Estate Dealer Or Investor – Can’t Switch At Drop Of Hat
I’m just a lowly CPA, but I think a critical point was missed in the decision. The Court attributes everything that happened from 2002 on to Mr. Boree. If Glen Falls LLC was a partnership up till 2005, what happened before then was not relevant. Mr. Boree gets a fresh start in his purpose in holding the property at the deemed liquidation of the partnership. By conflating the two, the Tax Court appears to be contradicting its holding in the Phelan decision. Of course, it appears that Mr. Boree did not really take advantage of the fresh start. Nonetheless, I think that more careful planning and the introduction of one or more special-purpose entities might have enabled Mr. Boree to achieve capital gains treatment on a significant part of the transaction.
Phelan Decision Showed How To Get Capital Gains Treatment While Engaging In Development Acitvity
The Phelan brothers were involved in both real estate development and construction. Along with their partner, they formed a single purpose entity (Jackson Creek Land Corporation-JCLC) to own the particular tract of land in question (which they designated Jackson Creek). JCLC was considered a partnership for income tax purposes. The court found the formation and operation of this single purpose entity very significant. It also noted that the Phelan’s real estate business conducted through other entities concerned commercial real estate rather than residential real estate projects, such as Jackson Creek.
How Much Of Alimony Tax Gap Is From Gaming The System?
Of the 266,190 returns that had discrepancies, IRS examined 10,870. That is 4% so I guess you could say, you are sharply increasing your chance of being audited by deducting alimony your ex-spouse does not pick up as income. On the other hand, you and your ex collectively have a 96% chance of getting away with something that is in your face blatantly wrong even though you are, in effect, ratting yourselves out.
Tax Court Petitions – UPS v USPS – One Letter – Big Difference
A timely mailed petition may be treated as though it were timely filed. Sec. 7502(a). Thus, if a petition is received by the Court after the expiration of the 90-day period, it is nevertheless deemed to be timely filed if the date of the U.S. Postal Service postmark stamped on the envelope in which the petition was mailed is within the time prescribed for filing. Id.; sec. 301.7502-1, Proced. & Admin. Regs.
Petitioner did not use the U.S. Postal Service to mail his petition to the Court
Joint Electronic Returns – Check With The Ex Before Hitting Send Button
A joint return is an irrevocable election – once the due date has passed. Ms. Bruce filed her return in March, though, at least a couple of weeks before the due date. So even if she had tacitly consented to the January filing, she changed her mind in time. So Mr. Bruce is stuck with married filing separate as his filing status.
Can Somebody Explain Tax Shelters To Thomas Piketty?
My career has spanned the period in which the United States moved from high marginal rates – 70% when I started – to much lower rates and something of a war on tax shelters. The high marginal rates seemed to create an irresistible impulse to use the tax code as the Swiss Army knife of social policy. Something tells me that high marginal rates will not all of a sudden give us CEOs who will say “Screw it, I’ll just take 400 grand. Not much point in having more.” Rather, there will be a renaissance of shelter activity.
Former Tampa Bay Buccaneers Owner Scores Touchdown In Tax Court
The parcel had a history of zoning problems and conservation concerns. There is a bald eagle nest on the property and it is within a wildlife corridor. The IRS valued the property based on how it is currently zoned. The PRH appraisal was based on obtaining a higher density and allowing for multi-family housing. The IRS harped on the former zoning problems, environmental issues and likely neighborhood opposition to multi-family housing
Nonrecognition On Divorce Transfers Hurts Receiving Spouse
We understand petitioner to argue that she had reasonable cause for treating the Distribution as nontaxable income because she contends that she relied in good faith on the advice of her tax professional. Petitioner’s assertion is unsubstantiated. Petitioner did not demonstrate that a tax professional advised her to take the position that the Distribution was nontaxable income. Petitioner’s inclusion of an unauthenticated and unsigned document, purportedly created by her tax professional, does not substantiate her claim. Moreover, there is nothing in the record regarding whether the Distribution was nontaxable income. Additionally, there is nothing in the record demonstrating that petitioner provided the Form 1099-R to her tax professional.