Case Studies

…begin on page 1 of each monthly newsletter.

2016 Editions

May 2016 Newsletter – IRS Rules Rental Equipment Company Wrongly Claimed Depreciation on Equipment That Was Sold Before It Was Ever Rented

April 2016 Newsletter - Tax Court Rules That Independent Contractor for the US Dept of State Is An Employee

March 2016 Newsletter – Tax Court Rules Bargain Sale To Charity Qualifies For Charitable Deduction

February 2016 Newsletter – District Court Sentences Former CEO to 27 Months in Prison for Repeatedly Filing False Tax Returns for his Investment Firm

January 2016 Newsletter – IRS Develops “Early Interaction Initiative” To Help Business Owners Stay Current With Their Payroll And Employment Tax Payments

2015 Editions

December 2015 Newsletter – Tax Court Holds IRS Penalty Was Overly Harsh on Couple’s Gross Overstatement of the Value of Land Donated as a Charitable Contribution 

November 2015 Newsletter – IRS Determines that Mobile Billboards Qualify for Section 199, Domestic Production Activities Deduction

October 2015 Newsletter -  IRS Publishes Guidance on Domestic Production Activities Deduction

September 2015 Newsletter – IRS Updates Its “Timely Mailed Is Timely Filed” Rule

August 2015 Newsletter – Court of Appeals Rules IRS Lien Is Superior To Bank Lien on Rental Income, When IRS Lien Pre-Dates the Receipt of Rental Income

July 2015 Newsletter – Tax Court Rules Vacation & Sick Pay Must Be Reported As Taxable Income

June 2015 Newsletter – Tax Court Finds Deficiencies In Business Valuations Submitted By Tax Payer And IRS

May 2015 Newsletter – IRS Announces that Offshore Voluntary Disclosure Program (OVDP) Will Remain Open Indefinitely

April 2015 Newsletter – Tax Court Rules That Deductions Claimed But Unsubstantiated Are Disallowed, Even After Fire Destroyed The Company Records

March 2015 Newsletter – IRS Posts Guidance Regarding Third Party Payroll Providers 

February 2015 Newsletter – Tax Court Rejected Taxpayer’s Deduction of Passive Losses on Real Estate Properties 

January 2015 Newsletter – New IRS Rule Holds Third Party Payers or Professional Employee Organizations (PEOs) Responsible If Payroll Taxes Are Not Paid 


2014 Editions

December 2014 Newsletter IRS Chief Counsel Determined That Mobile Billboards Qualify For Code Section 199 Domestic Production Activity Deduction

November 2014 Newsletter – Tax Court Rules For Taxpayer Who Failed To Get A Qualified Appraisal When One Was Needed

October 2014 Newsletter Court of Appeals Reverses Tax Court, Ruling That $4.4M Can Be Reasonable Compensation For A Sole Shareholder Who Has Been Undercompensated For Many Years

September 2014 Newsletter – Tax Court Rules That Guaranteed Payments To Active Husband & Wife Partners In An LLC Are Subject To Self-Employment Tax

August 2014 Newsletter – IRS Grants Extension for Farmland Estate to File Section 2032A Special Use Election

July 2014 Newsletter – Appeals Court Rules That Decedent’s Valuation of a Privately Held  Company May Be Reduced Dollar-for-Dollar by the Decedent’s Tax Liability

June 2014 Newsletter – IRS Issues Fact Sheet Concerning “Reasonable” Compensation of S Corp Officers

May 2014 Newsletter – Court of Appeals Overturns Tax Court: Allows Taxpayer’s Appraisal of Hard To Value Property

April 2014 Newsletter – US Court Rules That Donors Health Problems Were Not Severe Enough to Warrant Reasonable Cause for Failure to File a Gift Tax Return

March 2014 Newsletter – Tax Court Rules That Interests Given in a Family Limited Partnership Were Completed Gifts As They Satisfied the Present Interest Tests

February 2014 Newsletter – Federal District Court Rules that CFO’s Mental Health Issues Are Not a Defense for Non-compliance with IRS Order

January 2014 Newsletter – IRS Issues Regulations Restricting Use of the Alternate Valuation Method


2013 Editions

December 2013 Newsletter – Tax Court Rules That A Family Limited Partnership Is Not Included in the Decedent’s Estate

November 2013 Newsletter – Tax Court Rules That An Estate Is Not Entitled To Deduct the Cost of Settling a Contested Will 

October 2012 Newsletter – Circuit Court Affirms IRS’ Position That Extensive Personal Use of FLP Assets Voids Tax Benefits

September 2013 Newsletter – IRS Letter Ruling: Income from Hydraulic Fracturing (Fracking) Is Qualifying Income for Tax Purposes in a Publicly Traded Partnership

August 2013 Newsletter – District Court Rules that Trustees of an Estate Were Liable for Unpaid Estate Taxes

July 2013 Newsletter – IRS Private Letter Ruling Restates that IRA Beneficiary Must Be Identifiable “Without Qualification” to Avoid 5-Year Minimum Distribution Rule

June 2013 Newsletter – Federal Court Rules that Taxpayer Cannot Claim “Privilege” After Claiming Reliance on Professional Advice to Avoid Penalties

May 2013 Newsletter – US Courts Uphold IRS Substance-Over-Form Doctrine in Determining Tax Liability

April 2013 Newsletter – Texas District Court Holds that Estate May Deduct Interest on Loan from Family Limited Partnership To Pay Estate Taxes

March 2013 Newsletter – IRS Notice – Cell Phones Issued to Employees for Business Use Are Not Taxable to the Employee

February 2013 Newsletter – US Court of Appeals Finds Appraiser’s Report Is Discoverable, and Not Protected by Attorney/Client Privilege

January 2013 Newsletter – Tax Court Rejects Rules Adjunct Professor Was An Employee Not An Independent Contractor For Tax Purposes


2012 Editions

December 2012 Newsletter – US District Court Rejects Taxpayers’ Valuation of Property Gifted To Children Citing Lack of Business Purpose for Restrictions

November 2012 Newsletter – Tax Court Rejects Doctors’ Donated Stock Valuations As Too High; Assesses 40% Accuracy Penalty For Not Acting In Good Faith

October 2012 Newsletter – US Court of Appeals Rules Appraisal Done for Taxpayer at the Request of his Attorney is Still Subject to Discovery by IRS

September 2012 Newsletter – IRS Rules Life Insurance Policies Not Includible For Estate Tax If Decedent Did Not Retain Power Of Appointment

August 2012 Newsletter – IRS Announces That Intangible Items, Such As Trade Marks, Trade Names, Mastheads, and Customer-Based Intangibles Can Qualify As Like Kind Property

July 2012 Newsletter – Appeals Court Upholds Value of Estate’s Interest in Closely Held Company May Be Reduced by Entire Built-In Capital Gains Tax Liability

June 2012 Newsletter – US Court of Appeals Rules Taxpayer’s Appraisal on Gifted Land Is Discoverable by the IRS

May 2012 Newsletter – Tax Court Rules that Payments Made by a Corporation to a Married Couple Were Loan Repayments to Wife

April 2012 Newsletter – Tax Court Holds Sole Member of LLC Personally Liable for Unpaid Employment Taxes

March 2012 Newsletter – Tax Court Allows S Corp To Use Lower Value Than Sale Price To Calculate Built In Capital Gains Tax

February 2012 Newsletter – US District Court Upholds IRS’ Right to Levy on Taxpayer’s Home to Collect Unpaid Taxes

January 2012 Newsletter – US District Court Rules That Grants of LLC Memberships Do Not Qualify for Annual Gift Tax Exclusion


2011 Editions

December 2011 Newsletter – Court of Appeals Rules That Reliance on Professional Accountant’s Advice Is Not Sufficient To Avoid Negligence Penalty

November 2011 Newsletter – IRS Revenue Ruling: Life Insurance Proceeds To S Corp Will Be Excluded From Income

October 2011 Newsletter – Tax Court Rules That Transfers of Stock into an FLP Were an Indirect Gift to Children

September 2011 Newsletter – Tax Court Rules That Minority Interest Discount And Lack of Marketability Discounts Apply To Valuation of Family Limited Partnership Interest

August 2011 Newsletter – Tax Court Disallows Individual Deduction for Sub S Corp Losses Because Corporation Filed Bankruptcy Prior to Year End

July 2011 Newsletter – Tax Court Disallows Deduction for Married Couple’s Travel Expense to Husband’s Construction Work Sites

June 2011 Newsletter – Tax Court Upholds Higher Valuation of Limited Partnership’s Assets When Taxpayer Failed To Prove Its Legitimate Business Purpose

May 2011 Newsletter – Tax Court Holds that Fractured Hip Is No Excuse for Late Filing and Payment of Estate Tax 

April 2011 Newsletter – IRS Issues Guidance Regarding Employer Federal Tax Deposits To Be Made By Electronic Funds Transfer

March 2011 Newsletter – Tax Court Rules S Corp May Use Lower Value Than Actual Selling Price To Calculate Built In Gains, Based On Qualified Business Valuation 

February 2011 Newsletter – Tax Court Rules That Taxpayer’s Tournament Sport Fishing Is Recreation, Not A For-Profit Business Loss

January 2011 Newsletter – IRS Rules That Failure To Disclose Valuation Method May Subject Gifts To Added Tax Beyond 3-Year Statute of Limitations


2010 Editions

December 2010 Newsletter – IRS Rules That Descendant’s Life Insurance Policies Without Powers Of Appointment And Conversion Are Not Subject To Estate Tax

November 2010 Newsletter – Court Rules That Spouse’s Willful Intent To Falsify Tax Returns May Be Considered To Establish Defendant’s Innocence For Tax Liability

October 2010 Newsletter – IRS Rules Closely Held C Corps May Carry Back NOL’s To Offset Portfolio Gains

September 2010 Newsletter – Tax Court Disallows an Estate from Claiming Marital Deduction in Spite of Will Provisions

August 2010 Newsletter – Tax Court Assesses Fraud Penalties on Corporation Which Failed To Collect & Pay Employment & Withholding Taxes

July 2010 Newsletter – Tax Court Penalizes Doctors Who Overstated Value of Their Corporate Stock Contributions

June 2010 Newsletter – IRS Allows 2nd Marriage and Blended Family to Qualify as an Unforeseen Circumstance for Partial Home Sale Exclusion

May 2010 Newsletter – Tax Court Finds Retired Law Partners Guaranteed Payments Are Reportable As Ordinary Income, Not Capital Gains

April 2010 Newsletter – Take Advantage of Two Home Energy Tax Credits for Homeowners

March 2010 Newsletter – Tax Court Holds Cash Distributions to Sole Shareholder Were Constructive Dividends, Not Reimbursements; Poor Recording Keeping Cited

February 2010 Newsletter – Tax Court Rules that Settlement Payment for Trade Secret Misappropriation is Taxable as Ordinary Income, Not Capital Gains

January 2010 Newsletter – Tax Court Rules Company Payments to Son Were Gifts, Not Compensation


2009 Editions

December 2009 Newsletter – Annual Limit on Deductible Contributions to Health Savings Account (HAS) Have Been Raised for 2010

November 2009 Newsletter – CEO Held Liable for Employment Taxes Not Paid by a Subsidiary Company

October 2009 Newsletter – Tax Court Partially Upholds Business Valuation Discounts for Estate Tax

September 2009 Newsletter – IRS Rules Key Man Life Insurance Proceeds Are Excludable From Income for S Corps

August 2009 Newsletter – Tax Court Rules Commercial Tax Preparers Not Held To the Same Standard of Care in Protecting Individual Tax Returns

July 2009 Newsletter – Tax Court Rules That Minority Interest Discount and Lack of Marketability Discount Apply to Family Limited Partnership Interest

June 2009 Newsletter – Tax Court Overturns IRS, Rules Corporate Payments To Couple Are Loan Repayments To Wife, Not Taxable Dividends

May 2009 Newsletter – Tax Court Partially Upholds Discounts Taken in Valuing Business Interests for Estate Tax Purposes

April 2009 Newsletter – Appeals Court Holds Business Owner Criminally Liable for Payroll Taxes Even Though Taxpayer May Have Lacked Funds To Do So

March 2009 Newsletter – Tax Court Holds Valuation of Interest in Privately Held Corporation May Be Properly Discounted for Lack of Control, Lack of Marketability and Built In Capital Gains

February 2009 Newsletter – Tax Court Holds Business Start Up Expenses Are Deductible

January 2009 Newsletter – Tax Court Disallows Buy-Sell Agreement in Valuing Decedent’s Business Interest


2008 Editions

December 2008 Newsletter – IRS Disallows Business Expense Deductions with No Record Business Was Operating