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)
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.
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Home Concrete & Supply v. United States, No. 09-2353 (4th Cir. February 7, 2011)
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.
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Exxon Mobil v. Commissioner, 136 T.C. No. 5 (2011)
The Tax Court holds that an attempted tax-free reorganization did not meet the continuity of interest requirements of section 368.
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Ralph’s Grocery v. Commissioner, TC Memo. 2011-25
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.
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Greenberg v. Commissioner TC Memo. 2011-18
The Tax Court rules in favor of the taxpayer on the treatment of historic rehabilitation credits allocated through a partnership.
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Historic Boardwalk Hall v. Commissioner, 136 T.C. No. 1 (2011)
The Court of Appeals for the Federal Circuit affirms the Court of Federal Claims grant of summary judgment in favor of the United States ruling that the taxpayer failed to meet the necessary certification requirements to be eligible for the Work Opportunity Tax Credit (WOTC) and Welfare to Work (WtW) tax credit.
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Manor Care v. U.S., No. 2010-5038 (Jan. 21, 2011)
The Seventh Circuit Court of Appeals overturns the Tax Court holding that a taxpayer’s overstatement of basis in a Son of Boss tax shelter is an omission of income under ยง 6501(e) triggering the six year statute of limitations.
For commentary on the implications of this opinion visit Tax Appellate Blog.
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Beard v. Commissioner, No. 09-3741 (7th Cir. Jan. 26 2011)
The Tax Court rules that ordinary business expenses, other than the cost of wagers, incurred by a professional gambler are not subject to limitation on gambling losses under section 165(d).
[Please note: This is not the U.S. Supreme Court’s medical resident/Chevron deference opinion. For that opinion, please click here.]
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Mayo v. Commissioner, 136 T.C. No. 4 (2011)
The Supreme Court’s decision in Mayo Foundation will have a lasting impact. Chevron deference is now the standard. One scholar asks whether that is always the case.
What to do about regulations that appear to be promulgated in order to affect the outcome of a pending case? Does Chevron deference still apply? Does another standard apply? Should another standard apply?
Prof. Lederman of the Univeristy of Indiana at Bloomington will present “Hold the Mayo: What Respect Should Courts Accord Tax Regulations and Rulings Issued During Litigation?” at the University of Florida Faculty Colloquia Series.
Please visit Tax Prof Blog for an abstract.
