Writer/producer cannot amortize and deduct personal film and television memorabilia collection. The Tax Court rejected petitioner’s argument that IRS acceptance of the position under a prior audit (with a no change letter) was an agreement between the parties or binding on the court.
Read the opinion:
Rooney v. Commissioner, TC Memo 2011-14
In yet another variation on the mailbox rule, the Tax Court rules that a petition mailed from a foreign country was timely without a U.S. postmark where the petitioner was able to show domestic receipt using a tracking service.
The Tax Court holds that a partnership can assert a reasonable cause defense to section 6662 penalties. However, reliance on a promoter, defined as an “advisor who participates in structuring the transaction”, is not reasonable cause for purposes of avoiding the penalty.
The Third Circuit Court of Appeals reversed the Tax Court on the validity of Treas. Reg. 1.6015-5(b)(1) which establishes a two year statute of limitations for innocent spouse relief under IRC Sec. 6015(f). The Court of Appeals remanded to the Tax Court for a finding on the petitioner’s argument for an equitable tolling of the statute.
For more on this question, see the Lantz opinion out of the Seventh Circuit.
Mannella v. Commissioner, No. 10-1308 (3rd Cir. Jan. 19, 2011)
The Ninth Circuit Court of Appeals rules that it does not have jurisdiction over partner’s bifurcated interests (direct and indirect) in a TEFRA partnership.
A unanimous United States Supreme Court (8-0) rules that medical residents are employees, not students, and therefore are subject to FICA withholding. Chevron deference applies to Treasury Regulations rather than the standard set forth in National Muffler.
Mayo Foundation v. United States, No. 09-837 (January 11, 2011)
The Delaware Supreme Court holds that PricewaterhouseCoopers LLP is not liable for malpractice or breach of contract in its role as the outside auditor of American International Group Inc. under the New York law doctrine of in pari delicto.
Teachers’ Retirement System of Louisiana v. PricewaterhouseCoopers
The Tax Court follows the instructions of the Court of Appeals for the D.C. Circuit on the question of jurisdiction over Sec. 6662 partner level penalties in a partnership level proceeding.
Judge Holmes of the Tax Court provides historical context in a substantiation case. Pursuit of the unified life does not relieve the taxpayer of the obligation under the Internal Revenue Code to identify, segregate and substantiate expenses.
Judge Henry E. Hudson of the Eastern District of Virginia rules that the Patient Protection and Affordable Care Act, specifically Section 1501, the Minimum Essential Coverage Provision, is unconstitutional. Under the law as passed, the Provision would be enforced through the Internal Revenue Code. The judge ruled that the provision is unconstitutional under the Commerce Clause and General Welfare Clause.
Read the opinion here:
Commonwealth of Virginia v. Sebelius, Civil Action No. 3:10CV188-HEH (E.D.Va 2010)
