Most Recent Posts
Sawyer Taxi Heirs Midcoast Fortrend Deal – Could Have Been Worse
In the end, the Sawyer Trust is not responsible for the entire corporate tax that Fortrend dodged, but it does have to give back the premium it received over the net asset value of the companies it sold (Cash on hand less correct corporate tax). The IRS had wanted to get nearly $20 million in corporate tax from the Trust. The decision limits the recovery to $13.5 million, before interest and penalties. It is still quite painful when you consider that an S election in 1987 would have legitimately avoided the entire problem.
IRS Chief Counsel Has To Decide If Nail Polish Is A Luxury
Taxpayer’s contributions of wrinkle creams, hair gels, perfumes, hair sprays, hair texturizers, curling irons, hair dyes, nail polishes, epilators, and hair restoration treatments (the “Donated Products”), are not “qualified contributions” that are eligible for the enhanced deduction under I.R.C. § 170(e)(3), because they are not needed for the care of the ill, the needy, or infants under I.R.C. § 170(e)(3)(A)(i) and Treas. Reg. § 1.170A-4A(b)(ii).
Bill Cassidy Providing Emergency Assistance To Wealthy Televangelists
On its face, providing a special tax benefit to “ministers of the gospel” seems blatantly unconstitutional, since it would only apply to Christians. The IRS early interpreted the statute more broadly to include many who would not otherwise want to be considered “ministers of the gospel” – rabbis and cantors for example. Hence the preservation of the clergy tax benefit has broad ecumenical support with, for example, Southern Baptists joining with the Russian Orthodox and Krishna Consciousness and Islamic organizations to file an amicus brief supporting the government’s appeal of Judge Crabb’s decision.
Kansas Hungry For $40 Million Tax Slice Of Pizza Hut Franchisee’s Profits
This is where it gets a little lawyerly. Mr. Bicknell’s attorneys want to argue that the regulations should not apply in his case since they were issued after he moved. They have other problems with the regulations such as unconstitutional vagueness. DOR argues that they are relevant since the bulk of the assessment relates to 2006. The Court of Appeals ruled that the challenge to the regulations is premature.
Tax Court Views Ballpark Guesstimates As Fields Of Dreams
If you are involved in a money-losing side activity (or money-making if your income is over the NII threshold), try to keep contemporaneous records of the time you spend. Ideally, you should cross-reference the time log with invoices and e-mail print-outs, and vendor invoices. Of course, if your goal is to be featured in one of my blog posts, it might not happen, since there is a decent chance that you win at appeals. Whatever you do, never refer to whatever reconstruction you come up with as a “ballpark guesstimate”. That will cause you to strike out.
Strong Language In Partnership Agreement Might Help With Expense Deductions
The other lesson is more subtle. It would be a good idea for professional partnerships to look closely at the expense language in their agreements. Particularly in partnerships with “Eat what you kill” compensation structures, the agreement should be very clear that partners might be expected to spend money on all sorts of things that might not be reimbursed.
Non-Custodial Parents Out Of Luck When Form 8332 Withheld
If the custodial parent is withholding a signed Form 8332 that you are entitled to, there are a couple of approaches. Filing your return without the required form is not one that I would recommend. My own view which may be of limited applicability is to just forget about it and don’t claim the exemption. This is clearly the best course if both you and your ex are going to end up leaving money to the same kids.
Clergy Out In Force To Defend Their Housing Tax Break
Professor Edward Zelinsky of Yeshiva University. Professor Zelinsky has written that Section 107(2) is constitutionally permissible although not necessarily good tax policy.
Professor Zelinsky has commented that when taxation meets religion, you are always going to have a problem either from the tax authorities looking into the religious organization or from them policing the boundary of the exemption. I am really grateful to Professor Zelinsky for clarifying that.
No Money For April 15 1040 Balance Due? Don’t Panic!
You can request an extension of time to file even though you don’t have the money to send in with it. This gets you out of the late file penalty, although it does not help with interest. The other advantage of going on extension is that it will be six months longer before your payment plan commences.
Easement Valuations Not So Easy Anymore
One development is the recent Tax Court decision in the case of Gordon and Lorna Kaufman. The Kaufman’s easement deduction had been disallowed on technical ground in an earlier Tax Court decision, but the First Circuit overturned that decision. I covered the First Circuit decision here. So the Tax Court got the case back in order to decide what the value of the easement was.
The problem with valuing the easement was that the property was already subject to a lot of restrictions due to its location in Boston’s South End Landmark District. Giving up your rights to change the façade of a building in such a neighborhood can be a bit like me renouncing my superpowers. That ended up being the Tax Court’s conclusion on valuation. The court went along with the IRS expert’s criticism of the taxpayer’s appraiser