In a case appealable to the Sixth Circuit Court of Appeals, the Tax Court maintains that Treas. Reg. 1.6015-5(b)(1) is an invalid interpretation of IRC 6015(f) in circuits other than the Seventh Circuit (where such a ruling was overturned in Lantz v. Commissioner).
8th Circuit: No S Corp Basis in Non-Economic Loans
The Eighth Circuit upholds the Tax Court’s finding that S Corp. shareholders did not have basis from loans to the corporation where there was no economic outlay by the shareholder.
Russell v. Commissioner, No. 09-2306 (8th Cir., Aug. 27, 2010)
Second Circuit Upholds Tax Shelter Convictions
The Second Circuit Court of Appeals upholds the tax shelter related convictions of a KPMG parter & manager and the conviction of Sidley Austin partner R.J. Ruble.
Read the opinion here:
U.S. v Pfaff, No. 09-1702 (August 27, 2010)
Winter v. Commissioner
In a conference opinion, a majority of the Tax Court holds that it has jurisdiction to redetermine the tax of a taxpayer who reports pass-through income inconsistently with a Schedule K-1.
Holland v. State ex rel. Oklahoma Health Care Authority
In a brief but divided opinion, the Okalahoma Supreme Court finds a 1% health care assessment was unconstitutional. What follows is a link only not the usual pdf.
http://bit.ly/HollandvState
Tax Exempt Software Meets Georgia Sales Tax Rebate Threshold
Georgia Court of Appeals rules that sales tax exempt electronically delivered computer software nonetheless qualifies to meet the threshold spend for purposes of a general sales tax rebate.
Read the opinion here:
Choicepoint v. Graham, Docket # A10A0234 (Ga. App. July 15, 2010)
Fifth Circuit Vacates Tax Court on Donation of Historical Facade Easement
The Fifth Circuit Court of Appeals vacated the Tax Court’s valuation of an historic façade easement for charitable contribution purposes and remanded for further findings.
11th Circuit: Like Kind Exchange Disallowed
The 11th Circuit affirms the Tax Court’s disallowance of a Section 1031 exchange.
Ocmulgee Fields v. Commissioner, Docket No. 09-13395 (11th Cir. August 13, 2010)
Federal Claims: Accuracy Penalties Apply to Son of Boss Participants
The Court of Federal Claims uphold accuracy related penalties against several Son of Boss tax shelter partnerships.
2nd Circuit: Entire Transferred Interest in Home Not Included in Estate
In a decision that prompted a 20 page dissent, the Second Circuit reverses the Tax Court on the application of Section 2036 to the transfer of a 49% interest in a home that the donor continued to occupy.
Estate of Stewart v. Commissioner, Docket 07-5370-ag (2d Cir. August 9, 2010)
For additional commentary click here.