The Tax Court rules whether a number of different activities performed on real property qualify as deductible domestic production gross receipts under Section 199.
Read the opinion here:
Gibson v. Commissioner, 136 T.C. No. 10 (2011)
Monthly Archives: February 2011
In re FedEx Ground
The District Court for the Nothern District of Indiana denies a motion for immediate appeal of 12 consolidated cases filed against FedEx Ground. The question before each of the consolidated cases was whether FedEx drivers were independent contractors or employees, the latter of which would subject the company and drivers to state and federal employment taxes.
Read the decision here:
In re FedEx Ground, No. 3:05-MD-527 RM (N.D. Ind. Feb. 11, 2011)
Fifth Circuit: Overstated Basis is Not Omitted Income for the 6-Year Statute of Limitations
The hits keep on coming. The Fifth Circuit joins the growing chorus from the Courts of Appeals holding that an overstatement of basis does not equal an omission of income and the 6 year statute of limitations does not apply.
Read the opinion here:
Burks v. United States, No. 09-11061 (5th Cir. Feb. 9, 2011)
4th Circuit: 6 Year Statute of Limitation Does Not Apply to Overstatement of Basis
The Fourth Circuit Court of Appeals joins two other circuits holding that the 6 year statute of limitations does not apply to an overstatement of basis.
Read the opinion here:
Home Concrete & Supply v. United States, No. 09-2353 (4th Cir. February 7, 2011)
Tax Court: Jurisdiction over Interest Netting Refund Claim
The Tax Court determines that it has jurisdiction to determine an interest netting dispute that may result in a “refund” and decides that claim in favor of the taxpayer.
Read the opinion here:
Exxon Mobil v. Commissioner, 136 T.C. No. 5 (2011)
Tax Court: Tax-Free Reorg Did Not Meet Continuity of Interest Requirements
The Tax Court holds that an attempted tax-free reorganization did not meet the continuity of interest requirements of section 368.
Read the opinion here:
Ralph’s Grocery v. Commissioner, TC Memo. 2011-25
Tax Court: Punitive Damages are Still Subject to Income Tax
The Tax Court rules that punitive damages still are not excluded from tax.
Petitioner argued that the punitive damages received should be subject to the exclusion from income for amounts received for personal injures or sickness from health of accident insurance (Section 104(a)(3). Petitioner argued that “but for” the injury, which was covered by accident insurance and from which the proceeds were paid, the punitive damages would not have been paid. Petitioners offered the alternative argument that the damages were not punitive, but rather were “bad faith damages.” The Tax Court rejected both arguments.
Read the opinion:
Greenberg v. Commissioner TC Memo. 2011-18