The United State Supreme Court denied cert. to hear the appeal in Texton v. U.S.
Supreme Court Orders 5/24/10, Textron v. United States, cert. denied.
Monthly Archives: May 2010
Minnesota: Commissioner of Revenue Cannot Disregard Captive REIT
Commissioner of Revenue does not have the authority to attribute income to and assess taxes on a business on the grounds that the business structured itself to comply with the relevant tax statutes and was motivated to do so solely by tax avoidance.
Read the opinion here:
HMN Financial, Inc. v. Commissioner, Docket A09-1164 (Minn. Sup. Ct. May 20, 2010).
Summitt v. Commissioner
The Tax Court (Judge Haines) holds that under Sec. 1256 a foreign currency call option is not a foreign currency contract and the marked-to-market provisions of Sec. 1256 do not apply to allow a loss on assignment of the option to a charity.
District Court: Tax Effect of a Son of Boss Transaction Denied
In a lengthy opinion, the United States District Court for the District of Massachusetts disallowed the tax benefits accruing from a Son of Boss transaction promoted by KPMG and entered into by the former U.S. Ambassador to Ireland, Richard Egan.
Fidelity International Currency Advisor A Fund, LLC v. United States, Docket 05-40151 et. al. (D. Mass May 17, 2010)
Step Transaction Applies to LLC Interest Transfers for Gift Tax Purposes
The Tax Court holds that the step transaction doctrine applies to the transfer of interests in an LLC for gift tax purposes.
Read the opinion here:
Pierre v. Commissioner, T.C. Memo 2010-106 (2010)
Ringgold Telephone Co. v. Commissioner
Tax Court: No Beneficial Ownership of Corporate Assets at Death
The Tax Court rejected the government’s beneficial ownership argument and found that petitioner did not have a property interest in income producing warehouses at death. Thus, the value of the those warehouses was not includable in his estate for estate tax purposes under Section 2031.
Tax Court: Intermountain Insurance Service of Vail LLC v. Commissioner
District Court: KPMG Transaction Lacked Economic Substance
Mississippi District Court finds that FOCus transaction was a series of steps lacking in economic substance and comprising an abusive tax shelter. Penalties imposed.
Nevada Partners Fund LLC v. United States, No. 3:06cv379-HTW-MTP (S.D. Miss., Apr. 30, 2010)